Midsouth Bancorp (MSL) 10-K 16 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 16, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	MIDSOUTH BANCORP INC
Entity Central Index Key	745,981
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 61,919,903
Entity Common Stock, Shares Outstanding		11,374,518
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks, including required reserves of $6,669 and $8,522, respectively	$ 31,687	$ 37,170
Interest-bearing deposits in banks	47,091	48,331
Federal funds sold	3,450	3,700
Securities available-for-sale, at fair value (cost of $344,416 and $317,375 at December 31, 2016 and 2015, respectively)	341,873	318,159
Securities held-to-maturity (estimated fair value of $98,261 and $117,698 at December 31, 2016 and 2015, respectively)	98,211	116,792
Other investments	11,355	11,188
Loans	1,284,082	1,263,645
Allowance for loan losses	(24,372)	(19,011)
Loans, net	1,259,710	1,244,634
Bank premises and equipment, net	68,954	69,105
Accrued interest receivable	7,576	6,594
Goodwill	42,171	42,171
Intangibles	4,621	5,728
Cash surrender value of life insurance	14,335	13,622
Other real estate	2,175	4,187
Other assets	10,131	6,352
Total assets	1,943,340	1,927,733
Deposits:
Noninterest-bearing	414,921	374,261
Interest-bearing	1,164,509	1,176,589
Total deposits	1,579,430	1,550,850
Securities sold under agreements to repurchase	94,461	85,957
Short-term Federal Home Loan Bank advances	0	25,000
Long-term Federal Home Loan Bank advances	25,424	25,851
Junior subordinated debentures	22,167	22,167
Other liabilities	7,482	4,771
Total liabilities	1,728,964	1,714,596
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.10 par value; 30,000,000 shares authorized, 11,362,716 and 11,362,150 shares issued and outstanding at December 31, 2016 and 2015, respectively	1,136	1,136
Additional paid-in capital	111,166	110,771
Unearned ESOP shares	(1,233)	(1,093)
Accumulated other comprehensive (loss) income	(1,010)	509
Retained earnings	63,207	60,694
Total stockholders’ equity	214,376	213,137
Total liabilities and stockholders’ equity	1,943,340	1,927,733
Series B Preferred stock
Stockholders’ equity:
Preferred stock	32,000	32,000
Series C Preferred stock
Stockholders’ equity:
Preferred stock	$ 9,110	$ 9,120

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks, reserves	$ 6,669	$ 8,522
Amortized Cost	344,416	317,375
Fair Value	$ 98,261	$ 117,698
Stockholders’ equity:
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized (in shares)	30,000,000	30,000,000
Common stock, issued (in shares)	11,362,716	11,362,150
Common stock, outstanding (in shares)	11,362,716	11,362,150
Series B Preferred stock
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	32,000	32,000
Preferred stock, outstanding (in shares)	32,000	32,000
Series C Preferred stock
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized (in shares)	100,000	100,000
Preferred stock, issued (in shares)	91,098	91,200
Preferred stock, outstanding (in shares)	91,098	91,200

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income:
Loans, including fees	$ 68,682	$ 71,633	$ 72,327
Investment securities:
Taxable	7,924	7,559	8,100
Nontaxable	1,756	2,188	2,637
Other interest income	766	517	423
Total interest income	79,128	81,897	83,487
Interest expense:
Deposits	3,654	3,587	3,515
Short-term borrowings	966	1,017	840
Long-term borrowings	366	364	378
Junior subordinated debentures	704	613	1,074
Total interest expense	5,690	5,581	5,807
Net interest income	73,438	76,316	77,680
Provision for loan losses	10,600	13,900	5,625
Net interest income after provision for loan losses	62,838	62,416	72,055
Noninterest income:
Service charges on deposit accounts	9,612	9,523	9,780
ATM and debit card income	6,579	6,463	7,209
Gain on securities, net	20	1,243	128
Executive officer life insurance proceeds	0	0	3,000
Other charges and fees	2,797	3,092	2,843
Total noninterest income	19,008	20,321	22,960
Noninterest expenses:
Salaries and employee benefits	32,932	32,036	33,847
Occupancy expense	14,630	15,052	15,064
ATM and debit card expense	3,239	2,951	2,889
Other	17,749	17,098	16,747
Total noninterest expense	68,550	67,137	68,547
Income before income taxes	13,296	15,600	26,468
Income tax expense	3,857	4,583	7,358
Net earnings	9,439	11,017	19,110
Dividends on preferred stock	2,861	687	698
Net earnings available to common stockholders	$ 6,578	$ 10,330	$ 18,412
Earnings per common share:
Basic (in dollars per share)	$ 0.58	$ 0.91	$ 1.63
Diluted (in dollars per share)	$ 0.58	$ 0.90	$ 1.58

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net earnings	$ 9,439	$ 11,017	$ 19,110
Unrealized (losses) gains on securities available-for-sale:
Unrealized holding (losses) gains arising during the year	(3,307)	(2,369)	4,687
Less: reclassification adjustment for net gains on sales of securities available-for-sale	(20)	(1,243)	(128)
Unrealized (losses) gains on securities available-for-sale	(3,327)	(3,612)	4,559
Fair value of derivative instruments designated as cash flow hedges:
Change in fair value of derivative instruments designated as cash flow hedges during the year	989	0	0
Total other comprehensive (loss) income, before tax	(2,338)	(3,612)	4,559
Income tax effect related to items of other comprehensive (loss) income	819	1,264	(1,596)
Total other comprehensive (loss) income, net of tax	(1,519)	(2,348)	2,963
Total comprehensive income	$ 7,920	$ 8,669	$ 22,073

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Surplus	Unearned ESOP Shares	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Retained Earnings	Series B Preferred stock	Series B Preferred stockRetained Earnings	Series C Preferred stock	Series C Preferred stockRetained Earnings
Beginning balance at Dec. 31, 2013	$ 190,749	$ 41,997	$ 1,141	$ 111,017	$ 0	$ (106)	$ (3,286)	$ 39,986
Beginning balance (in shares) at Dec. 31, 2013		131,971	11,407,196
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	19,110							19,110
Dividends on Series preferred stock									$ (320)	$ (320)	$ (378)	$ (378)
Dividends on common stock	(3,959)							(3,959)
Conversion of Series C preferred stock to common stock	0	$ (629)	$ 3	626
Conversion of Series C preferred stock to common stock (in shares)		(6,291)	34,947
Treasury stock acquired at cost	(9)						(9)
Exercise of stock options	643		$ 5	638
Exercise of stock options (in shares)			49,560
Tax benefit resulting from exercise of stock options, net adjustment	21			21
Increase in ESOP obligation, net of repayments	(250)				(250)
Stock option and restricted stock compensation expense	442			442
Change in accumulated other comprehensive income/loss	2,963					2,963
Ending balance at Dec. 31, 2014	209,012	$ 41,368	$ 1,149	112,744	(250)	2,857	(3,295)	54,439
Ending balance (in shares) at Dec. 31, 2014		125,680	11,491,703
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	11,017							11,017
Dividends on Series preferred stock									(320)	(320)	(367)	(367)
Dividends on common stock	(4,075)							(4,075)
Conversion of Series C preferred stock to common stock	0	$ (248)	$ 1	247
Conversion of Series C preferred stock to common stock (in shares)		(2,480)	13,759
Reclassification of treasury stock per the LCBA	0		$ (15)	(3,280)			3,295
Reclassification of treasury stock per the LCBA (in shares)			(150,967)
Exercise of stock options	99		$ 1	98
Exercise of stock options (in shares)			7,655
Tax benefit resulting from distribution from Directors Deferred Compensation Plan	420			420
Tax benefit for dividends paid to the ESOP	187			187
Increase in ESOP obligation, net of repayments	(843)				(843)
Stock option and restricted stock compensation expense	355			355
Change in accumulated other comprehensive income/loss	(2,348)					(2,348)
Ending balance at Dec. 31, 2015	213,137	$ 41,120	$ 1,136	110,771	(1,093)	509	0	60,694
Ending balance (in shares) at Dec. 31, 2015		123,200	11,362,150
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	9,439							9,439
Dividends on Series preferred stock									$ (2,496)	$ (2,496)	$ (365)	$ (365)
Dividends on common stock	(4,065)							(4,065)
Conversion of Series C preferred stock to common stock	0	$ (10)	$ 0	10
Conversion of Series C preferred stock to common stock (in shares)		(102)	566
Tax benefit resulting from distribution from Directors Deferred Compensation Plan	127			127
Tax benefit for dividends paid to the ESOP	154			154
Increase in ESOP obligation, net of repayments	(140)				(140)
Stock option and restricted stock compensation expense	210			210
ESOP compensation expense	(106)			(106)
Change in accumulated other comprehensive income/loss	(1,519)					(1,519)
Ending balance at Dec. 31, 2016	$ 214,376	$ 41,110	$ 1,136	$ 111,166	$ (1,233)	$ (1,010)	$ 0	$ 63,207
Ending balance (in shares) at Dec. 31, 2016		123,098	11,362,716

Consolidated Statements of Sto7

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Dividends on common stock (in dollars per share)	$ 0.36	$ 0.36	$ 0.35

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net earnings	$ 9,439	$ 11,017	$ 19,110
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	5,920	6,168	6,062
Accretion of purchase accounting adjustments	(750)	(1,235)	(2,540)
Provision for loan losses	10,600	13,900	5,625
Deferred tax benefit	(1,582)	(1,785)	(1,489)
Amortization of premiums on securities, net	2,963	2,815	3,047
(Accretion) amortization of other investments	0	(1)	3
Net loss (gain) on sale of other real estate	57	1	(1,061)
Net write down of other real estate owned	130	111	91
Net (gain) loss on sale/disposal of premises and equipment	(35)	(24)	182
Income Recognized from death benefit on bank owned life insurance	0	160	0
Stock-based compensation expense	210	355	442
Excess of book value over market value of ESOP shares released	(106)	0	0
Gain on sale and liquidation of securities available-for-sale	(20)	(1,243)	(128)
Change in accrued interest receivable	(982)	41	57
Change in accrued interest payable	(9)	(114)	(234)
Change in other assets and liabilities, net	1,289	(54)	612
Net cash provided by operating activities	26,843	29,185	29,758
Cash flows from investing activities:
Proceeds from maturities and calls of securities available-for-sale	68,696	70,934	48,464
Proceeds from maturities and calls of securities held-to-maturity	17,589	23,288	14,344
Proceeds from sale of securities available-for-sale	6,803	40,277	22,153
Purchases of securities available-for-sale	(104,491)	(156,449)	(1,250)
Purchases of securities held-to-maturity	0	0	(1,104)
Proceeds from redemption of other investments	600	2,180	150
Purchases of other investments	(767)	(3,377)	(580)
Redemption of Capital Securities related to MidSouth Statutory Trust I	0	0	217
Proceeds from bank owned life insurance death benefit	0	498	0
Net change in loans	(25,698)	14,480	(147,642)
Purchases of premises and equipment	(5,823)	(5,374)	(5,588)
Proceeds from sale of premises and equipment	89	83	1,729
Proceeds from sale of other real estate owned	3,170	1,514	3,794
Purchase of other real estate owned	0	(351)	0
Net cash used in investing activities	(39,832)	(12,297)	(65,313)
Cash flows from financing activities:
Change in deposits	28,615	(34,285)	66,679
Change in securities sold under agreements to repurchase	8,504	23,859	8,182
Borrowings on Federal Home Loan Bank advances	25,000	150,000	120,000
Repayments of Federal Home Loan Bank advances	(50,068)	(150,064)	(120,061)
Repayments of notes payable	0	0	(1,000)
Redemption of MidSouth Statutory Trust I	0	0	(7,217)
Proceeds from exercise of stock options	0	99	643
Purchase of treasury stock	0	0	9
Payment of dividends on preferred stock	(2,221)	(689)	(704)
Payment of dividends on common stock	(4,095)	(4,086)	(3,838)
Net cash provided by (used in) financing activities	6,016	(14,559)	62,696
Net (decrease) increase in cash and cash equivalents	(6,973)	2,329	27,141
Cash and cash equivalents, beginning of year	89,201	86,872	59,731
Cash and cash equivalents, end of year	82,228	89,201	86,872
Supplemental cash flow information:
Interest paid	5,700	5,695	6,041
Income taxes paid	4,473	6,641	8,065
Noncash investing and financing activities:
Change in accrued common stock dividends	0	(10)	121
Change in accrued preferred stock dividends	640	(3)	(6)
Net change in loan to ESOP	(140)	(843)	(250)
Change in unrealized gains/losses on securities available-for-sale, net of tax	(2,162)	(2,348)	2,963
Transfer of loans to other real estate	1,345	1,228	447
Financed portion of sales of other real estate	0	0	84
Directors Deferred Compensation Plan
Adjustments to reconcile net earnings to net cash provided by operating activities:
Excess Tax Benefit from Share-based Compensation, Operating Activities	(127)	(420)	0
Cash flows from financing activities:
Tax benefit	127	420	0
Employee Stock Ownership Plan
Adjustments to reconcile net earnings to net cash provided by operating activities:
Excess Tax Benefit from Share-based Compensation, Operating Activities	(154)	(187)	0
Cash flows from financing activities:
Tax benefit	154	187	0
Employee stock option
Adjustments to reconcile net earnings to net cash provided by operating activities:
Stock-based compensation expense	162	336	442
Excess Tax Benefit from Share-based Compensation, Operating Activities	0	0	(21)
Cash flows from financing activities:
Tax benefit	$ 0	$ 0	$ 21

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation —The consolidated financial statements include the accounts of MidSouth Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries MidSouth Bank, N.A. (the “Bank”), Financial Services of the South, Inc. (the “Finance Company”), which has liquidated its loan portfolio, and Peoples General Agency (“PGA”). All significant intercompany accounts and transactions have been eliminated in consolidation. We are subject to regulation under the Bank Holding Company Act of 1956. The Bank is primarily regulated by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). We are a financial holding company headquartered in Lafayette, Louisiana operating principally in the community banking business by providing banking services to commercial and retail customers through the Bank. The Bank is community oriented and focuses primarily on offering competitive commercial and consumer loan and deposit services to individuals and small to middle market businesses in Louisiana and central and east Texas. The accounting principles we follow and the methods of applying these principles conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing the financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with or in lieu of foreclosure on loans, the assessment of goodwill for impairment, and valuation allowances associated with the realization of deferred tax assets which are based on future taxable income. Given the current instability of the economic environment, it is reasonably possible that the methodology of the assessment of potential loan losses, losses on other real estate owned, goodwill impairment, and other fair value measurements could change in the near term or could result in impairment going forward. A summary of significant accounting policies follows: Cash and cash equivalents —Cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in other banks with original maturities of less than 90 days, and federal funds sold. Investment Securities —We determine the appropriate classification of debt securities at the time of purchase and reassesses this classification periodically. Trading account securities are held for resale in anticipation of short-term market movements. Debt securities are classified as held-to-maturity when we have the positive intent and ability to hold the securities to maturity. Securities not classified as held-to-maturity or trading are classified as available-for-sale. We had no trading account securities during the three years ended December 31, 2016 . Held-to-maturity securities are stated at amortized cost. Available-for-sale securities are stated at fair value, with unrealized gains and losses, net of deferred taxes, reported as a separate component of stockholders’ equity. The amortized cost of debt securities classified as held-to-maturity or available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity or, in the case of mortgage-backed securities, over the estimated life of the security. Amortization, accretion, and accrued interest are included in interest income on securities. Realized gains and losses on the sale of securities available-for-sale are included in earnings and are determined using the specific-identification method. Management evaluates investment securities for other than temporary impairment on a quarterly basis. A decline in the fair value of available-for-sale and held-to-maturity securities below cost that is deemed other than temporary is charged to earnings for a decline in value deemed to be credit related and a new cost basis for the security is established. The decline in value attributed to non-credit related factors is recognized in other comprehensive income. Other Investments —Other investments include Federal Reserve Bank and Federal Home Loan Bank stock, as well as other correspondent bank stocks and our CRA investment, which have no readily determined market value and are carried at cost. Due to the redemption provisions of the investments, the fair value equals cost and no impairment exists. Loans —Loans that we have the intent and ability to hold for the foreseeable future or until maturity are reported at the principal amount outstanding, net of the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on commercial and real estate mortgage loans is calculated by using the simple interest method on the daily balance of the principal amount outstanding. Unearned income on installment loans is credited to operations based on a method which approximates the interest method. In-house legal counsel and the collections department are responsible for validating loans past due for reporting purposes. Once loans are determined to be past due, the collections department actively works with customers to bring loans back to current status. We consider a loan to be impaired when, based upon current information and events, we believe it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans classified as special mention, substandard, or doubtful, based on credit risk rating factors, are reviewed for potential impairment. Our impaired loans include troubled debt restructurings and performing and nonperforming major loans in which full payment of principal or interest is not expected. Although our policy requires that non-major homogenous loans, which include all loans under $250,000 , be evaluated on an overall basis, our current volume of impaired loans allows us to evaluate each impaired loan individually. We calculate the allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. A loan may be impaired but not on nonaccrual status when available information suggests that it is probable the Bank may not receive all contractual principal and interest, however, the loan is still current and payments are received in accordance with the terms of the loan. Payments received for impaired loans not on nonaccrual status are applied to principal and interest. All impaired loans are reviewed, at minimum, on a quarterly basis. Reviews may be performed more frequently if material information is available before the next scheduled quarterly review. Existing valuations are reviewed to determine if additional discounts or new appraisals are required. After this review, when comparing the resulting collateral valuation to the outstanding loan balance, if the discounted collateral value exceeds the loan balance no specific allocation is reserved. All loans included in our impairment analysis are subject to the same procedure and review, with no distinction given to the dollar amount of the loan. Our Special Assets Committee meets monthly to review loans with adverse classifications. Loan officers, loan review officers, and in-house legal counsel contribute updated information on each credit, reviewing potential declines or improvements in the borrower’s repayment ability and our collateral position. If deterioration in our collateral position is determined, additional discounts may be applied to the impairment analysis before the new appraisal is received. The committee makes a determination of whether the loans reviewed have reached a point of collateral dependency and sufficient doubt exists as to collectibility. As a matter of policy, loans are placed on nonaccrual status when, in the judgment of committee members, the probability of collection of interest is deemed insufficient to warrant further accrual. For loans placed on nonaccrual status, the accrual of interest is discontinued and subsequent payments received are applied to the principal balance. Interest income is recorded after principal has been satisfied and as payments are received. Additionally, loans may be placed on nonaccrual status when the loan becomes 90 days past due and any of the following conditions exist: it becomes evident that the borrower will not make payments or will not or cannot meet the Bank’s terms for the renewal of a matured loan, full repayment of principal and interest is not expected, the loan has a credit risk rating of substandard, the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future, or foreclosure action is initiated. When a loan is placed on nonaccrual status, previously accrued but unpaid interest for the current year is deducted from interest income. Prior year unpaid interest is charged to the allowance for loan losses. Some loans may continue accruing after 90 days if the loan is in the process of renewing, being paid off, or the underlying collateral fully supports both the principal and accrued interest and the loan is in the process of collection. Nonaccrual loans may be returned to accrual status if all principal and interest amounts contractually owed are reasonably assured of repayment within a reasonable period and there is a period of at least six months to one year of repayment performance by the borrower depending on the contractual payment terms. When loans are returned to accrual status, interest income that was previously applied to the principal balance is not reversed but is recognized into interest income as an adjustment to the yield over the remaining life of the loan. Our Special Assets Committee must approve the return of loans to accrual status as well as exceptions to any requirements of the non-accrual policy. Generally, commercial, financial, and agricultural loans; construction loans; commercial real estate loans; consumer loans; and finance leases which become 90 days delinquent are either in the process of collection through repossession or foreclosure or are deemed currently uncollectible. The portion of loans deemed currently uncollectible, due to insufficient collateral, are charged-off against the allowance for loan losses. All loans requested to be charged-off must be specifically authorized by in-house legal counsel and the CEO. Requests may be initiated by collection personnel, bank counsel, loan review, and lending personnel. Charge-offs will be reviewed by in-house legal counsel and the CEO to ensure the propriety and accuracy of charge-off recommendations. Factors considered when determining loan collectibility and amount to be charged off for all segments in our loan portfolio include delinquent principal or interest repayment, the ability of borrower to make future payments, collateral value of outstanding debt, and the adequacy of guarantors support. It is the responsibility of in-house legal counsel to report all charge-offs to the Board of Directors or its designated Committee for ratification. Credit Risk Rating —We manage credit risk by observing written underwriting standards and lending policy established by the Board of Directors and management to govern all lending activities. The risk management program requires that each individual loan officer review his or her portfolio on a quarterly basis and assign recommended credit ratings on each loan. These efforts are supplemented by independent reviews performed by a loan review officer and other validations performed by the internal audit department. The results of the reviews are reported directly to the Audit Committee of the Board of Directors. Additionally, Bank concentrations are monitored and reported quarterly for risk rating distributions, major standard industry classification segments, real estate concentrations, and collateral distributions. Consumer and residential real estate loans are normally graded at inception, and the grade generally remains the same throughout the life of the loan. Loan grades on commercial, financial, and agricultural; construction; commercial real estate; and finance leases may be changed at any time when circumstances warrant, and are at a minimum reviewed quarterly. Loans can be classified into the following three risk rating groupings: pass, special mention, and substandard/doubtful. Factors considered in determining a risk rating grade include debt service capacity, capital structure/liquidity, management, collateral quality, industry risk, company trends/operating performance, repayment source, revenue diversification/customer concentration, quality of financial information, and financing alternatives. Pass grade signifies the highest quality of loans to loans with reasonable credit risk, which may include borrowers with marginally adequate financial performance, but have the ability to repay the debt. Special mention loans have potential weaknesses that warrant extra attention from the loan officer and other management personnel, but still have the ability to repay the debt. Substandard classification includes loans with well-defined weaknesses with risk of potential loss. Loans classified as doubtful are considered to have little recovery value and are charged off. Allowance for Loan Losses —The allowance for loan losses is a valuation account available to absorb probable losses on loans. All losses are charged to the allowance for loan losses when the loss actually occurs or when a determination is made that a loss is likely to occur. Recoveries are credited to the allowance for loan losses at the time of recovery. Quarterly, we estimate the probable level of losses in the existing portfolio through consideration of such factors including, but not limited to, past loan loss experience; estimated losses in significant credits; known deterioration in concentrations of credit; trends in nonperforming assets; volume and composition of the loan portfolio, including percentages of special mention, substandard and past due loans; lending policies and control systems; known inherent risks in the portfolio; adverse situations that may affect the borrower’s ability to repay; the estimated value of any underlying collateral; current national and local economic conditions, including the unemployment rate, the price of oil, and real estate absorption time; the experience, ability and depth of lending management; collections personnel experience; and the results of examinations of the loan portfolio by regulatory agencies and others. Based on these estimates, the allowance for loan losses is increased by charges to earnings and decreased by charge-offs (net of recoveries). The allowance is composed of general reserves and specific reserves. General reserves are determined by applying loss percentages to segments of the portfolio. The loss percentages are based on each segment’s historical loss experience, generally over the past three to five years, and adjustment factors derived from conditions in the Bank’s internal and external environment. All loans considered to be impaired are evaluated on an individual basis to determine specific reserve allocations in accordance with GAAP. Loans for which specific reserves are provided are excluded from the calculation of general reserves. We have an internal loan review department that is independent of the lending function to challenge and corroborate the loan grade assigned by the lender and to provide additional analysis in determining the adequacy of the allowance for loan losses. Management and the Board of Directors believe the allowance for loan losses is appropriate at December 31, 2016 . While determination of the allowance for loan losses is based on available information at a given point in time, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to recognize additions or deductions to the allowance based on their judgment and information available to them at the time of their examination. Premises and Equipment —Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used to compute depreciation are: Buildings and improvements 10 - 40 years Furniture, fixtures, and equipment 3 - 10 years Automobiles 3 - 5 years Leasehold improvements are amortized over the estimated useful lives of the improvements or the term of the lease, whichever is shorter. Other Real Estate Owned —Real estate properties acquired through, or in lieu of, loan foreclosures are initially recorded at fair value less estimated costs to sell based on a current valuation at the time of foreclosure. After foreclosure, valuations are periodically performed by management and a charge to earnings is recorded if the carrying value of a property exceeds its fair value less estimated costs to sell. Revenues and expenses from operations and changes in the valuation allowance are charged to earnings. Goodwill and Other Intangible Assets —Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill and other intangible assets deemed to have an indefinite useful life are not amortized but instead are subject to review for impairment annually, or more frequently if deemed necessary. Also, in connection with business combinations involving banks and branch locations, we generally record core deposit intangibles representing the value of the acquired core deposit base. Core deposit intangibles are amortized over the estimated useful life of the deposit base, generally on either a straight-line basis not exceeding 15 years or an accelerated basis over 10 years . The remaining useful lives of core deposit intangibles are evaluated periodically to determine whether events and circumstances warrant revision of the remaining period of amortization. Cash Surrender Value of Life Insurance —Life insurance contracts represent single premium life insurance contracts on the lives of certain officers of the Company. The Company is the beneficiary of these policies. These contracts are reported at their cash surrender value and changes in the cash surrender value are included in other noninterest income. Derivatives —Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheets and, as required by ASC 815, the Company records all derivatives at fair value. Accounting for changes in fair value of derivatives differs depending on whether the derivative has been designated and qualifies as part of a hedge relationship, and further, on the type of relationship. Derivatives Designated as Hedging Relationships The Company has entered into forward interest rate swap contracts to minimize the variability of future cash flows that is caused by changes in interest rates or other economic factors. These derivative instruments were designated as cash flow hedges under ASC Topic 815, Derivatives and Hedging. For cash flow hedges, the effective portion of the gain or loss related to the derivative instrument is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. The ineffective portion of the gain or loss is reported in earnings immediately. Derivatives Not Designated as Hedging Relationships The Company offers certain derivative instruments directly to qualified commercial lending clients seeking to manage their interest rate risk. These derivative instruments, including interest rate swap agreements, are not designated for hedge accounting and changes in fair value are recognized in earnings immediately. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional balance of interest rate swap agreements held by the Company at December 31, 2016 and 2015 was minimal and not material to the consolidated balance sheets. Repurchase Agreements —Securities sold under agreements to repurchase are secured borrowings treated as financing activities and are carried at the amounts at which the securities will be subsequently reacquired as specified in the respective agreements. Deferred Compensation —We record the expense of deferred compensation agreements over the service periods of the persons covered under these agreements. Income Taxes —Deferred tax assets and liabilities are recorded for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits, such as net operating loss carry forwards, are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. In the event the future tax consequences of differences between the financial reporting bases and the tax bases of our assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such assets is required. A valuation allowance is provided when it is more likely than not that a portion or the full amount of the deferred tax asset will not be realized. In assessing the ability to realize the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. A deferred tax liability is not recognized for portions of the allowance for loan losses for income tax purposes in excess of the financial statement balance. Such a deferred tax liability will only be recognized when it becomes apparent that those temporary differences will reverse in the foreseeable future. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent more likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Stock-Based Compensation —We expense stock-based compensation based upon the grant date fair value of the related equity award over the requisite service period of the employee. Basic and Diluted Earnings Per Common Share —Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is computed by dividing net earnings by the total of the weighted-average number of shares outstanding plus the dilutive effect of outstanding options. The amounts of common stock and additional paid-in capital are adjusted to give retroactive effect to large stock dividends. Small stock dividends, or dividends less than 25% of issued shares at the declaration date, are reflected as an increase in common stock and additional paid-in capital and a decrease in retained earnings for the market value of the shares on the date the dividend is declared. Comprehensive Income —Generally all recognized revenues, expenses, gains and losses are included in net earnings. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net earnings, are components of comprehensive income. We present comprehensive income in a separate consolidated statement of comprehensive income. Statements of Cash Flows —For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and interest-bearing deposits in other banks with original maturities of less than 90 days. Generally, federal funds are sold for one -day periods. Recent Accounting Pronouncements — ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities is the first ASU issued under the FASB's financial instruments project. ASU 2016-01 primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance in this ASU requires all equity securities with readily determinable fair values to be measured at fair value on the balance sheet, with changes in fair value recorded through earnings. For financial liabilities that are measured at fair value in accordance with the fair value option, the guidance requires changes in the fair value of a financial liabilities attributable to a change in instrument-specific credit risk to be recorded separately in other comprehensive income. This ASU eliminates the requirement to disclose the methods and significant assumptions used to estimate fair value. It does require public entities to use the exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. The effective date of this Update is for fiscal years beginning on or after December 15, 2017. The Company is evaluating the impact, if any, that ASU 2016-01 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-02, Leases (Topic 842) was issued with the intention of improving financial reporting about leasing transactions. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the guidance in the ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company is evaluating the impact that ASU 2016-02 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-09, Compensation - Stock Compensation (Topic 718) was issued as part of the FASB's simplification initiative. Under the new guidance, several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The effective date of this Update is for fiscal years beginning on or after December 15, 2016. The Company is evaluating the impact that ASU 2016-09 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments was issued with the intention of improving financial reporting by requiring timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets not recorded at fair value based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will be required to be implemented through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are effective. The effective date of this Update is for fiscal years beginning on or after December 15, 2019. The Company is evaluating the impact that ASU 2016-13 will have on its financial position, results of operations, and its financial statement disclosures. We expect the new accounting guidance to increase the allowance for loan losses with a resulting negative adjustment to retained earnings, and we will be implementing a new software program during 2017 to enable us to determine the extent of the impact, which could be material. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments was issued to address diversity in practice of how certain cash receipts and cash payments are currently presented and classified in the statement of cash flows. The amendments in the ASU provide guidance on the following issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees and beneficial interests in securitization transactions. Further, the ASU addresses the topic of separately identifiable cash flows and application of the predominance principle. The effective date of this Update is for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is evaluating the impact that ASU 2016-15 will have, if any, on its financial statement disclosures. Reclassifications —Certain reclassifications have been made to the prior years’ financial statements in order to conform to the classifications adopted for reporting in 2016 . The reclassifications had no impact on net income or stockholders’ equity.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	INVESTMENT SECURITIES The portfolio of securities consisted of the following (in thousands): December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: Obligations of state and political subdivisions $ 29,935 $ 226 $ 1,020 $ 29,141 GSE mortgage-backed securities 72,144 1,736 302 73,578 Collateralized mortgage obligations: residential 223,602 206 3,606 220,202 Collateralized mortgage obligations: commercial 3,135 — 53 3,082 Mutual funds 2,100 — 41 2,059 Corporate debt securities 13,500 311 — 13,811 $ 344,416 $ 2,479 $ 5,022 $ 341,873 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: Obligations of state and political subdivisions $ 30,750 $ 770 $ 27 $ 31,493 GSE mortgage-backed securities 84,946 2,321 229 87,038 Collateralized mortgage obligations: residential 194,067 297 2,276 192,088 Collateralized mortgage obligations: commercial 5,512 1 65 5,448 Mutual funds 2,100 — 8 2,092 $ 317,375 $ 3,389 $ 2,605 $ 318,159 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: Obligations of state and political subdivisions $ 40,515 $ 309 $ 39 $ 40,785 GSE mortgage-backed securities 44,375 426 311 44,490 Collateralized mortgage obligations: residential 8,969 — 323 8,646 Collateralized mortgage obligations: commercial 4,352 — 12 4,340 $ 98,211 $ 735 $ 685 $ 98,261 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: Obligations of state and political subdivisions $ 43,737 $ 697 $ 6 $ 44,428 GSE mortgage-backed securities 55,696 705 131 56,270 Collateralized mortgage obligations: residential 10,803 — 361 10,442 Collateralized mortgage obligations: commercial 6,556 2 — 6,558 $ 116,792 $ 1,404 $ 498 $ 117,698 With the exception of two private-label collateralized mortgage obligations ("CMOs") with a combined balance remaining of $18,000 and $27,000 at December 31, 2016 and 2015 , respectively, all of the Company’s CMOs are government-sponsored enterprise securities. The amortized cost and fair value of debt securities at December 31, 2016 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateralized mortgage obligations. Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 2,166 $ 2,179 Due after one year through five years 11,341 11,540 Due after five years through ten years 49,661 51,053 Due after ten years 279,148 275,042 $ 342,316 $ 339,814 Amortized Cost Fair Value Held-to-maturity: Due in one year or less $ 347 $ 347 Due after one year through five years 6,427 6,445 Due after five years through ten years 32,837 33,310 Due after ten years 58,600 58,159 $ 98,211 $ 98,261 Details concerning investment securities with unrealized losses are as follows (in thousands): December 31, 2016 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Available-for-sale: Obligations of state and political subdivisions $ 13,402 $ 1,020 $ — $ — $ 13,402 $ 1,020 GSE mortgage-backed securities 29,119 302 — — 29,119 302 Collateralized mortgage obligations: residential 187,235 3,099 14,194 507 201,429 3,606 Collateralized mortgage obligations: commercial 961 4 2,121 49 3,082 53 Mutual funds 2,059 41 — — 2,059 41 $ 232,776 $ 4,466 $ 16,315 $ 556 $ 249,091 $ 5,022 December 31, 2015 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Available-for-sale: Obligations of state and political subdivisions $ 1,192 $ 27 $ — $ — $ 1,192 $ 27 GSE mortgage-backed securities 21,607 229 — — 21,607 229 Collateralized mortgage obligations: residential 140,999 1,207 30,029 1,069 171,028 2,276 Collateralized mortgage obligations: commercial — — 2,946 65 2,946 65 Mutual funds 2,092 8 — — 2,092 8 $ 165,890 $ 1,471 $ 32,975 $ 1,134 $ 198,865 $ 2,605 December 31, 2016 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Held-to-maturity: Obligations of state and political subdivisions $ 8,054 $ 39 $ — $ — $ 8,054 $ 39 GSE mortgage-backed securities 19,408 311 — — 19,408 311 Collateralized mortgage obligations: residential — — 8,645 323 8,645 323 Collateralized mortgage obligations: commercial $ 4,340 $ 12 — — 4,340 12 $ 31,802 $ 362 $ 8,645 $ 323 $ 40,447 $ 685 December 31, 2015 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Held-to-maturity: Obligations of state and political subdivisions $ 541 $ 1 $ 505 $ 5 $ 1,046 $ 6 GSE mortgage-backed securities — — 7,021 131 7,021 131 Collateralized mortgage obligations: residential — — 10,442 361 10,442 361 $ 541 $ 1 $ 17,968 $ 497 $ 18,509 $ 498 Management evaluates whether unrealized losses on securities represent impairment that is other than temporary on a quarterly basis. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market’s perception of the issuer’s financial health and the security’s credit quality. If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. For equity securities, management reviews the near term prospects of the issuer, the nature and cause of the unrealized loss, the severity and duration of the impairments and other factors when determining if an unrealized loss is other than temporary. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income. As of December 31, 2016 , 80 securities had unrealized losses totaling 1.93% of the individual securities’ amortized cost basis and 1.29% of the Company’s total amortized cost basis. 10 of the 80 securities had been in an unrealized loss position for over twelve months at December 31, 2016 . These 10 securities had an amortized cost basis and unrealized loss of $25.8 million and $879,000 , respectively. The unrealized losses on securities at December 31, 2016 and 2015 resulted from changing market interest rates over the yields available at the time the underlying securities were purchased. Management identified no impairment related to credit quality. At December 31, 2016 and 2015 , management had both the intent and ability to hold impaired securities, and no impairment was evaluated as other than temporary. As a result, no impairment losses were recognized on securities during the years ended December 31, 2016 , 2015 , or 2014 . During the year ended December 31, 2016 , the Company sold 2 securities classified as available-for-sale at a gross gain of $20,000 . During the year ended December 31, 2015 , the Company sold 22 securities classified as available-for-sale at a net gain of $1.2 million . Of the 22 securities sold, 12 were sold with gains totaling $1.4 million and 10 securities were sold at a loss of $135,000 . Securities with an aggregate carrying value of approximately $293.4 million and $285.4 million at December 31, 2016 and 2015 , respectively, were pledged to secure public funds on deposit and for other purposes required or permitted by law.

LOANS

LOANS	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
LOANS	LOANS The loan portfolio consisted of the following (in thousands): December 31, 2016 2015 Commercial, financial and agricultural $ 459,574 $ 454,028 Real estate – construction 100,959 74,952 Real estate – commercial 481,155 471,141 Real estate – residential 157,872 149,064 Installment loans to individuals 82,660 111,009 Lease financing receivable 1,095 1,968 Other 767 1,483 1,284,082 1,263,645 Less allowance for loan losses (24,372 ) (19,011 ) $ 1,259,710 $ 1,244,634 The amounts reported in other loans at December 31, 2016 and 2015 includes the overdrawn demand deposit accounts and loans primarily made to non-profit entities reported for each period. An analysis of the activity in the allowance for loan losses is as follows (in thousands): December 31, 2016 2015 2014 Balance, beginning of year $ 19,011 $ 11,226 $ 8,779 Provision for loan losses 10,600 13,900 5,625 Recoveries 776 459 738 Loans charged-off (6,015 ) (6,574 ) (3,916 ) Balance, end of year $ 24,372 $ 19,011 $ 11,226 The Company monitors loan concentrations and evaluates individual customer and aggregate industry leverage, profitability, risk rating distributions, and liquidity for each major standard industry classification segment. At December 31, 2016 , one industry segment concentration, the oil and gas industry, aggregates more than 10% of the loan portfolio. The Company’s exposure in the oil and gas industry, including related service and manufacturing industries, totaled approximately $237.4 million , or 18.5% of total loans. Of the $237.4 million loans to borrowers in the oil and gas industry, $31.9 million or 13.4% were on nonaccrual status at December 31, 2016. Additionally, the Company’s exposure to CRE loans. At December 31, 2016 , CRE loans (including commercial construction and multifamily loans) totaled approximately $559.4 million , 48% of which are secured by owner-occupied commercial properties. Of the $559.4 million in loans secured by commercial real estate, $28.7 million or 5.1% were on nonaccrual status at December 31, 2016 . A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the years ended December 31, 2016 and 2015 is as follows (in thousands): December 31, 2016 Real Estate Coml, fin, and agric Construction Commercial Residential Installment loans to individuals Lease financing receivable Other Total Allowance for loan losses: Beginning balance $ 11,268 $ 819 $ 4,614 $ 816 $ 1,468 $ 14 $ 12 $ 19,011 Charge-offs (4,366 ) — (218 ) (24 ) (1,407 ) — — (6,015 ) Recoveries 459 — 123 5 189 — — 776 Provision 8,696 (234 ) 865 143 1,145 (9 ) (6 ) 10,600 Ending balance $ 16,057 $ 585 $ 5,384 $ 940 $ 1,395 $ 5 $ 6 $ 24,372 Ending balance: individually evaluated for impairment $ 4,369 $ — $ 2,216 $ 260 $ 308 $ — $ — $ 7,153 Ending balance: collectively evaluated for impairment $ 11,688 $ 585 $ 3,168 $ 680 $ 1,087 $ 5 $ 6 $ 17,219 Loans: Ending balance $ 459,574 $ 100,959 $ 481,155 $ 157,872 $ 82,660 $ 1,095 $ 767 $ 1,284,082 Ending balance: individually evaluated for impairment $ 31,473 $ 9 $ 28,689 $ 1,826 $ 541 $ — $ — $ 62,538 Ending balance: collectively evaluated for impairment $ 428,101 $ 100,950 $ 451,887 $ 155,975 $ 82,119 $ 1,095 $ 767 $ 1,220,894 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ 579 $ 71 $ — $ — $ — $ 650 December 31, 2015 Real Estate Coml, fin, and agric Construction Commercial Residential Installment loans to individuals Lease financing receivable Other Total Allowance for loan losses: Beginning balance $ 5,729 $ 954 $ 2,402 $ 810 $ 1,311 $ 16 $ 4 $ 11,226 Charge-offs (4,936 ) (105 ) (183 ) (87 ) (1,263 ) — — (6,574 ) Recoveries 235 3 26 12 183 — — 459 Provision 10,240 (33 ) 2,369 81 1,237 (2 ) 8 13,900 Ending balance $ 11,268 $ 819 $ 4,614 $ 816 $ 1,468 $ 14 $ 12 $ 19,011 Ending balance: individually evaluated for impairment $ 961 $ — $ 1,585 $ 160 $ 221 $ — $ — $ 2,927 Ending balance: collectively evaluated for impairment $ 10,307 $ 819 $ 3,029 $ 656 $ 1,247 $ 14 $ 12 $ 16,084 Loans: Ending balance $ 454,028 $ 74,952 $ 471,141 $ 149,064 $ 111,009 $ 1,968 $ 1,483 $ 1,263,645 Ending balance: individually evaluated for impairment $ 27,718 $ 37 $ 19,890 $ 1,903 $ 404 $ — $ — $ 49,952 Ending balance: collectively evaluated for impairment $ 426,310 $ 74,915 $ 450,631 $ 147,080 $ 110,605 $ 1,968 $ 1,483 $ 1,212,992 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ 620 $ 81 $ — $ — $ — $ 701 An aging analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands): December 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total Loans Recorded Investment > 90 days and Accruing Commercial, financial, and agricultural $ 2,297 $ 902 $ 31,425 $ 34,624 $ 424,950 459,574 $ 96 Real estate - construction 2,613 399 9 3,021 97,938 100,959 — Real estate - commercial 5,159 1,931 25,408 32,498 448,657 481,155 140 Real estate - residential 1,956 207 1,553 3,716 154,156 157,872 16 Installment loans to individuals 756 36 538 1,330 81,330 82,660 16 Lease financing receivable — — — — 1,095 1,095 — Other 89 5 — 94 673 767 — $ 12,870 $ 3,480 $ 58,933 $ 75,283 $ 1,208,799 $ 1,284,082 $ 268 December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total Loans Recorded Investment > 90 days and Accruing Commercial, financial, and agricultural $ 1,362 $ 2,317 $ 25,696 $ 29,375 $ 424,653 $ 454,028 $ 59 Real estate - construction 1,047 — 12 1,059 73,893 74,952 — Real estate - commercial 1,164 514 19,512 21,190 449,951 471,141 — Real estate - residential 1,703 367 1,563 3,633 145,431 149,064 19 Installment loans to individuals 1,022 244 409 1,675 109,334 111,009 69 Lease financing receivable — — — — 1,968 1,968 — Other 101 4 — 105 1,378 1,483 — $ 6,399 $ 3,446 $ 47,192 $ 57,037 $ 1,206,608 $ 1,263,645 $ 147 Non-accrual loans are as follows (in thousands): December 31, 2016 2015 Commercial, financial and agricultural $ 31,461 $ 27,705 Real estate - construction 9 37 Real estate - commercial 28,688 19,907 Real estate - residential 1,881 1,998 Installment loans to individuals 541 404 Lease financing receivable — — Other — — $ 62,580 $ 50,051 The amount of interest that would have been recorded on nonaccrual loans, had the loans not been classified as nonaccrual, totaled approximately $3.4 million , $2.0 million , and $594,000 for the years ended December 31, 2016 , 2015 , and 2014 . Interest actually received on nonaccrual loans at December 31, 2016 , 2015 , and 2014 was $168,000 , $47,000 , and $105,000 , respectively. Loans that are individually evaluated for impairment are as follows (in thousands): December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial, financial, and agricultural $ 15,101 $ 15,428 $ — $ 18,815 $ 191 Real estate - construction 9 9 — 23 — Real estate - commercial 12,710 12,710 — 9,297 64 Real estate - residential 903 903 — 1,134 — Installment loans to individuals 73 87 — 54 1 Subtotal: 28,796 29,137 — 29,323 256 With an allowance recorded: Commercial, financial, and agricultural 16,372 16,470 4,369 10,781 42 Real estate - commercial 15,979 15,979 2,216 14,992 28 Real estate - residential 923 923 260 730 — Installment loans to individuals 468 478 308 419 11 Subtotal: 33,742 33,850 7,153 26,922 81 Totals: Commercial 60,162 60,587 6,585 53,885 325 Construction 9 9 — 23 — Residential 1,826 1,826 260 1,864 — Consumer 541 565 308 473 12 Grand total: $ 62,538 $ 62,987 $ 7,153 $ 56,245 $ 337 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial, financial, and agricultural $ 22,529 $ 22,793 $ — $ 11,484 $ 745 Real estate - construction 37 37 — 45 — Real estate - commercial 5,886 5,886 — 3,903 97 Real estate - residential 1,365 1,385 — 954 17 Installment loans to individuals 34 34 — 56 — Subtotal: 29,851 30,135 — 16,442 859 With an allowance recorded: Commercial, financial, and agricultural 5,189 6,373 961 3,704 138 Real estate - commercial 14,004 14,004 1,585 9,236 161 Real estate - residential 538 538 160 533 7 Installment loans to individuals 370 384 221 334 8 Subtotal: 20,101 21,299 2,927 13,807 314 Totals: Commercial 47,608 49,056 2,546 28,327 1,141 Construction 37 37 — 45 — Residential 1,903 1,923 160 1,487 24 Consumer 404 418 221 390 8 Grand total: $ 49,952 $ 51,434 $ 2,927 $ 30,249 $ 1,173 Loans are categorized into risk categories based on relevant information about the ability of borrowers to serve their debt, such as: current financial information, historical payment experience, credit documentation, public information, current economic trends, and other factors. Loans are analyzed individually and classified according to their credit risk. This analysis is performed on a continuous basis. The following definitions are used for risk ratings: Special Mention: Weakness exists that could cause future impairment, including the deterioration of financial ratios, past due status, and questionable management capabilities. Collateral values generally afford adequate coverage but may not be immediately marketable. Substandard: Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. Currently the borrower maintains the capacity to service the debt. The loan may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary. Doubtful: Specific weaknesses characterized as Substandard exist that are severe enough to make collection in full unlikely. There is no reliable secondary source of full repayment. Loans classified as Doubtful will usually be placed on non-accrual status. The probability of some loss is extremely high but because of certain important and reasonably specific factors, the amount of loss cannot be determined. Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans. The following tables present the classes of loans by risk rating (in thousands): December 31, 2016 Commercial Credit Exposure Credit Risk Profile by Creditworthiness Category Commercial, financial, and agricultural Real estate - commercial Total Percentage of Total Pass $ 346,246 $ 420,970 $ 767,216 81.56 % Special mention 22,611 23,085 45,696 4.86 % Substandard 90,300 37,100 127,400 13.54 % Doubtful 417 — 417 0.04 % $ 459,574 $ 481,155 $ 940,729 100.00 % Construction Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - construction Percentage of Total Pass $ 100,775 99.82 % Special mention — — % Substandard 184 0.18 % $ 100,959 100.00 % Residential Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - Residential Percentage of Total Pass $ 153,403 97.17 % Special mention 1,181 0.75 % Substandard 3,288 2.08 % $ 157,872 100.00 % Consumer and Commercial Credit Exposure Credit Risk Profile Based on Payment Activity Installment loans to individuals Lease financing receivable Other Total Percentage of Total Performing $ 82,103 $ 1,095 $ 767 $ 83,965 99.34 % Nonperforming 557 — — 557 0.66 % $ 82,660 $ 1,095 $ 767 $ 84,522 100.00 % December 31, 2015 Commercial Credit Exposure Credit Risk Profile by Creditworthiness Category Commercial, financial, and agricultural Real estate - commercial Total Percentage of Total Pass $ 383,897 $ 412,141 $ 796,038 86.04 % Special mention 32,506 28,217 60,723 6.55 % Substandard 37,353 30,783 68,136 7.36 % Doubtful 272 — 272 0.03 % $ 454,028 $ 471,141 $ 925,169 100.00 % Construction Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - construction Percentage of Total Pass $ 74,794 99.79 % Special mention 34 0.04 % Substandard 124 0.17 % $ 74,952 100.00 % Residential Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - Residential Percentage of Total Pass $ 144,704 97.08 % Special mention 1,225 0.82 % Substandard 3,135 2.10 % $ 149,064 100.00 % Consumer and Commercial Credit Exposure Credit Risk Profile Based on Payment Activity Installment loans to individuals Lease financing receivable Other Total Percentage of Total Performing $ 110,536 $ 1,968 $ 1,483 $ 113,987 99.59 % Nonperforming 473 — — 473 0.41 % $ 111,009 $ 1,968 $ 1,483 $ 114,460 100.00 % Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is a restructuring of a debt made by the Company to a debtor for economic or legal reasons related to the debtor’s financial difficulties that it would not otherwise consider. The Company grants the concession in an attempt to protect as much of its investment as possible. Information about the Company’s TDRs is as follows (in thousands): December 31, 2016 Current Past Due Greater Than 30 Days Nonaccrual TDRs Total TDRs Commercial, financial and agricultural $ 12 $ — $ 24,331 $ 24,343 Real estate - commercial — 140 808 948 $ 12 $ 140 $ 25,139 $ 25,291 December 31, 2015 Current Past Due Greater Than 30 Days Nonaccrual TDRs Total TDRs Commercial, financial and agricultural $ 16 $ — $ 20,865 $ 20,881 Real estate - commercial — 148 — 148 $ 16 $ 148 $ 20,865 $ 21,029 During the year ended December 31, 2016 , there was one loan relationship with a pre-modification balance of $5.5 million identified as a TDR after conversion of the loans to interest only for a limited amount of time. This one TDR subsequently defaulted on the modified terms and totaled $5.5 million at December 31, 2016. During the year ended December 31, 2015 , there was one loan relationship with a pre-modification balance of $21.4 million identified as a TDR after conversion of the loans to interest only for a limited amount of time. This one TDR subsequently defaulted on the modified terms and totaled $20.3 million at December 31, 2015. For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology. If it is determined losses are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans. As of December 31, 2016 , there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs. In the opinion of management, all transactions entered into between the Company and such related parties have been and are made in the ordinary course of business, on substantially the same terms and conditions, including interest rates and collateral, as similar transactions with unaffiliated persons and do not involve more than the normal risk of collection. An analysis of the 2016 activity with respect to these related party loans and commitments to extend credit is as follows (in thousands): Balance, beginning of year $ 1,840 New loans 671 Repayments and adjustments (560 ) Balance, end of year $ 1,951

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT	PREMISES AND EQUIPMENT Premises and equipment consisted of the following (in thousands): December 31, 2016 2015 Land $ 17,693 $ 16,253 Buildings and improvements 56,674 54,126 Furniture, fixtures, and equipment 29,042 28,165 Automobiles 1,854 1,787 Leasehold improvements 10,671 10,725 Construction-in-process 899 1,418 116,833 112,474 Less accumulated depreciation and amortization (47,879 ) (43,369 ) $ 68,954 $ 69,105 Depreciation expense totaled approximately $5.9 million , $6.2 million , and $6.1 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS The carrying amount of goodwill for each of the years ended December 31, 2016 and 2015 was approximately $42.2 million . Goodwill is recorded on the acquisition date of each entity. A summary of core deposit intangible assets as of December 31, 2016 and 2015 is as follows (in thousands): 2016 2015 Gross carrying amount $ 11,674 $ 11,674 Less accumulated amortization (7,053 ) (5,946 ) Net carrying amount $ 4,621 $ 5,728 Amortization expense on the core deposit intangible assets totaled approximately $1.1 million in 2016 , 2015 and 2014 . The estimated amortization expense on the core deposit intangible assets for the five succeeding years and thereafter is as follows (in thousands): 2017 $ 1,106 2018 1,106 2019 1,106 2020 726 2021 577 $ 4,621

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
DEPOSITS	DEPOSITS Deposits consisted of the following (in thousands): December 31, 2016 2015 Noninterest-bearing $ 414,921 $ 374,261 Savings and money market 539,815 531,449 NOW accounts 472,484 475,346 Time deposits less than $250 120,399 132,349 Time deposits $250 or more 31,811 37,445 $ 1,579,430 $ 1,550,850 Time deposits held consist primarily of certificates of deposits. The maturities for these deposits at December 31, 2016 are as follows (in thousands): 2017 $ 115,515 2018 16,311 2019 7,375 2020 6,983 2021 6,024 Thereafter 2 $ 152,210 Deposits from related parties totaled approximately $17.6 million and $9.1 million at December 31, 2016 and 2015 , respectively.

SECURITIES SOLD UNDER AGREEMENT

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	12 Months Ended
	Dec. 31, 2016
Disclosure of Repurchase Agreements [Abstract]
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase totaled $94.5 million and $86.0 million at December 31, 2016 and 2015 , respectively. At December 31, 2016 and 2015 , retail repurchase agreements, defined as securities sold under agreements to repurchase from our customers, totaled $82.0 million and $73.5 million , respectively. These retail repurchase agreements are secured overnight borrowings from customers, which may be drawn on demand. The agreements bear interest at a rate determined by us. The average rate of the outstanding agreements was 0.46% and 0.48% at December 31, 2016 and 2015 , respectively. The Company had pledged securities with an approximate market value of $86.5 million and $75.1 million as collateral at December 31, 2016 and 2015 , respectively. Also included in securities sold under agreements to repurchase is a $12.5 million repurchase agreement the Company entered into with CitiGroup Global Markets, Inc. (“CGMI”) effective August 9, 2007. Under the terms of the repurchase agreement, interest is payable quarterly based on a floating rate equal to the 3-month LIBOR for the first 12 months of the agreement and a fixed rate of 4.57% for the remainder of the term. The rate at December 31, 2016 and 2015 was 4.57% . The repurchase date is scheduled for August 9, 2017; however, the agreement may be called by CGMI quarterly. The Company had pledged securities with a market value of $13.9 million and $17.6 million as collateral at December 31, 2016 and 2015 , respectively. In 2016 , 2015 , and 2014 , the Company did not have an average balance in any category of short-term borrowings including retail repurchase agreements, reverse repurchase agreements, federal funds purchased, or short-term FHLB advances that exceeded 30% of our stockholders’ equity for such year.

SHORT-TERM FEDERAL HOME LOAN BA

SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES	12 Months Ended
	Dec. 31, 2016
Advances from Federal Home Loan Banks [Abstract]
SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES	SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES Short-term FHLB advances totaled $25.0 million at December 31, 2015. There were no short-term FHLB advances outstanding at December 31, 2016. The short-term FHLB advances at December 31, 2015 consisted of one FHLB advance with a maturity of 4 months at a fixed interest rate of 0.30% . The short-term and long-term FHLB advances at December 31, 2016 and 2015 are collateralized by a blanket lien on first mortgages and other qualifying loans totaling $265.9 million and $268.6 million , respectively. As of December 31, 2016 and 2015 , the Company had $240.9 million and $218.5 million , respectively, of additional FHLB advances available.

LONG-TERM FEDERAL HOME LOAN BAN

LONG-TERM FEDERAL HOME LOAN BANK ADVANCES	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
LONG-TERM FEDERAL HOME LOAN BANK ADVANCES	LONG-TERM FEDERAL HOME LOAN BANK ADVANCES Long-term FHLB advances totaled $25.4 million and $25.9 million at December 31, 2016 and 2015 , respectively. The scheduled maturities of long-term FHLB advances at December 31, 2016 are summarized as follows (in thousands): Amount Weighted Average Rate 2017 $ 15,403 3.412 % 2019 10,021 1.985 % Total FHLB advances $ 25,424

JUNIOR SUBORDINATED DEBENTURES

JUNIOR SUBORDINATED DEBENTURES	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
JUNIOR SUBORDINATED DEBENTURES	JUNIOR SUBORDINATED DEBENTURES A description of the junior subordinated debentures outstanding is as follows (in thousands): December 31, Date Issued Maturity Date Interest Rate Callable After 2016 2015 July 31, 2001 July 9, 2031 3 month LIBOR plus 3.30% July 31, 2006 $ 5,671 $ 5,671 September 20, 2004 September 20, 2034 3 month LIBOR plus 2.50% September 20, 2009 8,248 8,248 October 12, 2006 October 12, 2036 3 month LIBOR plus 1.85% June 26, 2011 5,155 5,155 June 21, 2007 June 21, 2037 3 month LIBOR plus 1.70% June 15, 2012 3,093 3,093 $ 22,167 $ 22,167 The trusts are considered variable-interest entities (“VIE”). The Trusts are not consolidated with the Company since the Company is not the primary beneficiary of the VIE. Accordingly, the Company does not report the securities issued by the Trusts as liabilities, and instead reports as liabilities the junior subordinated debentures issued by the Company and held by the Trusts, as these are not eliminated in the consolidation. The Trust Preferred Securities are recorded as junior subordinated debentures on the balance sheets, but subject to certain limitations qualify for Tier 1 capital for regulatory capital purposes.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES At December 31, 2016 , future annual minimum rental payments due under non-cancellable operating leases are as follows (in thousands): 2017 $ 1,929 2018 1,837 2019 1,847 2020 1,850 2021 1,394 Thereafter 6,002 $ 14,859 Rental expense under operating leases for 2016 , 2015 , and 2014 was approximately $2.2 million , $2.5 million , and $2.5 million , respectively. The Company is party to various legal proceedings arising in the ordinary course of business. In management’s opinion, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. At December 31, 2016 , the Company had borrowing lines available through the Bank with the FHLB of Dallas and other correspondent banks. The Bank had approximately $240.9 million available, subject to available collateral, under a secured line of credit with the FHLB of Dallas. Federal funds lines of credit were available through correspondent banks with approximately $53.5 million available for overnight borrowing at December 31, 2016 . Additionally, $180.5 million in loan collateral is pledged under a Borrower-in-Custody line with the FRB-Atlanta.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands): 2016 2015 Deferred tax assets: Allowance for loan losses $ 9,177 $ 7,750 Unrealized losses on securities 890 — Core deposit intangible 436 351 Deferred compensation 696 712 Other 241 55 Total deferred tax assets 11,440 8,868 Deferred tax liabilities: Premises and equipment 3,318 3,634 Goodwill 1,820 1,446 FHLB stock dividends 80 70 Unrealized gains on cash flow hedges 346 — Unrealized gains on securities — 274 Prepaid expenses 306 323 Purchase accounting adjustments on securities 753 854 Other 245 95 Total deferred tax liabilities 6,868 6,696 Net deferred tax asset $ 4,572 $ 2,172 Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes that it is more likely than not that it will realize the benefits of these deductible differences existing at December 31, 2016 . Therefore, no valuation allowance is necessary at this time. The net deferred tax assets for 2016 and 2015 are included in other assets on the consolidated balance sheets. Components of income tax expense are as follows (in thousands): 2016 2015 2014 Current $ 5,439 $ 6,368 $ 8,847 Deferred benefit (1,582 ) (1,785 ) (1,489 ) Total income tax expense $ 3,857 $ 4,583 $ 7,358 The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% on pre-tax income as follows (in thousands): December 31, 2016 2015 2014 Taxes calculated at statutory rate $ 4,654 $ 5,460 $ 9,264 Increase (decrease) resulting from: Tax-exempt interest, net (615 ) (766 ) (923 ) Executive officer life insurance proceeds — — (1,050 ) Other (182 ) (111 ) 67 $ 3,857 $ 4,583 $ 7,358 The Company’s federal income tax returns are open and subject to examination from the 2013 tax return year and forward. The various state income and franchise tax returns are generally open from the 2013 and later tax return years based on individual state statutes of limitation. We are not currently under examination by federal or state tax authorities for the 2013 , 2014 , or 2015 tax years.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFITS	EMPLOYEE BENEFITS The Company sponsors a leveraged employee stock ownership plan (“ESOP”) that covers all employees who meet minimum age and service requirements. The Company makes annual contributions to the ESOP in amounts as determined by the Board of Directors. These contributions are used to pay debt service and purchase additional shares. Certain ESOP shares are pledged as collateral for this debt. As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. During 2014, the ESOP borrowed $283,000 payable to MidSouth Bank, N.A for the purpose of purchasing additional shares of MidSouth Bancorp, Inc.’s common stock. The note payable matures on June 25, 2018. The loan proceeds were used to purchase a total of 16,000 shares at an average price of $17.71 per share. During 2015, the ESOP borrowed an additional $997,000 payable to MidSouth Bank, N.A. The notes payable mature on February 20, 2019 and October 5, 2019. A total of 76,526 shares at an average price of $13.02 per share were purchased with the loan proceeds. During 2016, the ESOP borrowed an additional $499,000 payable to MidSouth Bank, N.A. The note payable matures on July 29, 2020. A total of 62,014 shares at an average price of $8.05 were purchased with the loan proceeds. The balances of the notes payable of the ESOP were $1.2 million and $1.1 million at December 31, 2016 and December 31, 2015 , respectively. Because the source of the loan payments are contributions received by the ESOP from the Company, the related notes receivable is shown as a reduction of stockholders’ equity. In accordance with GAAP, compensation costs relating to shares purchased are based on the fair value of shares committed to be released. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The unreleased shares are not considered outstanding in the computation of earnings per common share. Dividends on unreleased shares are recorded as compensation expense; dividends on allocated ESOP shares are recorded as a reduction of stockholders’ equity. Dividends received on ESOP shares are allocated based on shares held for the benefit of each participant and used to purchase additional shares of stock for each participant. ESOP compensation expense consisting of both cash contributions and shares committed to be released for 2016 , 2015 and 2014 was approximately $603,000 , $720,000 and $720,000 , respectively. ESOP shares as of December 31, 2016 and 2015 were as follows: 2016 2015 Allocated shares 604,385 570,905 Shares released for allocation 28,451 10,130 Unreleased shares 114,067 80,504 Total ESOP shares 746,903 661,539 Fair value of unreleased shares at December 31 $ 1,551,000 $ 731,000 The Company has deferred compensation arrangements with certain officers, which will provide them a fixed benefit after retirement. During 2016, distributions related to these agreements totaled $49,000 . The Company recorded a liability of approximately $1.4 million at December 31, 2016 and 2015 in connection with these agreements. Deferred compensation expense recognized in 2016 , 2015 , and 2014 was approximately $60,000 , $82,000 , and $80,000 , respectively. The Company sponsors defined contribution post-retirement benefit agreements to provide death benefits for the designated beneficiaries of certain of the Company's executive officers. Under the agreements, split-dollar whole life insurance contracts were purchased on certain executive officers. The increase in the cash surrender value of the contracts, less the Bank's cost of funds, constitutes the Company's contribution to the agreements each year. In the event the insurance contracts fail to produce positive returns, the Company has no obligation to contribute to the agreements. During 2016 , 2015 , and 2014 , the Company incurred expenses of $2,000 , $14,000 and $7,000 , respectively, related to the agreements. The Company has a 401(k) retirement plan covering substantially all employees who have been employed for 90 days and meet certain other requirements. Under this plan, employees can contribute a portion of their salary within the limits provided by the Internal Revenue Code into the plan. The Company made contributions to the plan totaling $60,000 in 2016 , 2015 and 2014 , respectively.

EMPLOYEE STOCK PLANS

EMPLOYEE STOCK PLANS	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE STOCK PLANS	EMPLOYEE STOCK PLANS In May of 2007, our stockholders approved the 2007 Omnibus Incentive Compensation Plan to provide incentives and awards for directors, officers, and employees. “Awards” as defined in the Plan includes, with limitations, stock options (including restricted stock options), restricted stock awards, stock appreciation rights, performance shares, stock awards and cash awards, all on a stand-alone, combination, or tandem basis. The 2007 Omnibus Incentive Compensation Plan replaces the 1997 Stock Incentive Plan, which expired February of 2007. A total of 525,000 of our common shares authorized were reserved for issuance under the Plan, of which 136,093 were available to be granted as of December 31, 2016 . Stock Options – The 298,995 options outstanding at December 31, 2016 were all issued under the 2007 Omnibus Incentive Compensation Plan. All options outstanding at December 31, 2016 are incentive stock options with a term of ten years , 256,493 of which vest 20% each year on the anniversary date of the grant and 42,502 of which vest 16.67% each year. The following table summarizes activity relating to stock options: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2013 432,642 $ 14.13 Granted 17,500 18.99 Exercised (49,560 ) 12.97 Forfeited or expired (42,509 ) 16.24 Outstanding at December 31, 2014 358,073 $ 14.28 Granted 5,000 13.17 Exercised (7,655 ) 12.97 Forfeited or expired (16,042 ) 17.73 Outstanding at December 31, 2015 339,376 $ 14.13 Granted 5,000 9.30 Exercised — — Forfeited or expired (45,381 ) 15.17 Outstanding at December 31, 2016 298,995 $ 13.90 5.95 $ — Exercisable at December 31, 2014 109,691 $ 13.98 Exercisable at December 31, 2015 162,679 13.81 Exercisable at December 31, 2016 203,578 13.74 5.76 $ — A summary of changes in unvested options for the period ended December 31, 2016 is as follows: Number of Options Weighted Average Grant Date Fair Value Unvested options outstanding, beginning of year 176,697 $ 4.89 Granted 5,000 2.14 Vested (60,085 ) 4.73 Forfeited (26,195 ) 5.36 Unvested options outstanding, end of year 95,417 $ 4.72 As of December 31, 2016 there was a total of $291,000 in unrecognized compensation cost related to nonvested stock option grants that is expected to be recognized over a weighted-average period of 1.7 years . The total amount of options expensed during the years ended December 31, 2016 , 2015 and 2014 was $162,000 , $336,000 and $442,000 , respectively. The fair value of each option granted is estimated on the grant date using the Black-Scholes Option Pricing Model. This model requires management to make certain assumptions, including the expected life of the option, the risk free rate of interest, the expected volatility, and the expected dividend yield. The risk free rate of interest is based on the yield of a U.S. Treasury security with a similar term. The expected volatility is based on historic volatility over a term similar to the expected life of the options. The dividend yield is based on the current yield at the date of grant. The following assumptions were made in estimating the fair value of the options granted in 2016 and 2015 : 2016 2015 Risk free rate of interest 1.7 % 1.5 % Expected volatility 37.4 % 37.4 % Dividend yield 4.2 % 2.8 % Average expected life (in years) 5 5 Weighted-average grant-date fair value $ 2.14 $ 3.17 The total intrinsic value of the options exercised was $10,000 , and $217,000 for the years ended December 31, 2015 and 2014 , respectively. There were no options exercised during the year ended December 31, 2016. Restricted Stock Awards – During 2016 and 2015, the Compensation Committee of the Board of Directors of the Company made restricted stock grants under the Company’s 2007 Omnibus Incentive Compensation Plan. The restricted shares of stock, which are subject to the terms of a Restricted Stock Grant Agreement between the Company and each recipient, will fully vest on the third anniversary of the grant date. Prior to vesting, the recipient will be entitled to vote the shares and receive dividends, if any, declared by the Company with respect to its common stock. Compensation expense for restricted stock is based on the fair value of the restricted stock awards at the time of the grant, which is equal to the market value of the Company’s common stock on the date of grant. The value of the restricted stock grants that are expected to vest is amortized monthly into compensation expense over the three year vesting period. The weighted average grant date fair value of restricted stock awards was $10.97 and $13.92 for the years ended December 31, 2016 and 2015, respectively. For the year ended December 31, 2016 and 2015, compensation expense of $48,000 and $19,000 , respectively, was recognized related to non-vested restricted stock awards. There was no compensation expenses related to these awards in 2014. As of December 31, 2016 , there was $125,000 of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. The unrecognized compensation cost related to restricted stock awards at December 31, 2016 is expected to be recognized over a weighted-average period of 2.1 years . The following table summarizes activity relating to non-vested restricted stock awards: Number of Shares Weighted-Average Grant Date Fair Value Non-vested at December 31, 2014 — $ — Granted 11,250 13.92 Forfeited — — Vested — — Non-vested at December 31, 2015 11,250 $ 13.92 Granted 4,439 10.97 Forfeited (925 ) 13.92 Vested — — Non-vested at December 31, 2016 14,764 $ 13.03

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY The payment of dividends by the Bank to the Company is restricted by various regulatory and statutory limitations. At December 31, 2016 , the Bank had approximately $8.8 million available to pay dividends to the parent company without regulatory approval. In August 2011, the Company redeemed 20,000 outstanding shares of Series A Preferred Stock associated with its participation in the Treasury’s Capital Purchase Plan (“CPP”) under the Troubled Asset Relief Program at its stated value of $1,000 per share with funds from our issuance of 32,000 shares of Series B preferred stock in connection with the Company’s participation under the U.S. Treasury’s Small Business Lending Fund (“SBLF”). The additional $12.0 million of net proceeds from the issuance was provided to the Bank as additional capital. The dividend rate on the Series B preferred stock was set at 1.00% for the fourth quarter of 2013 due to attaining the target 10% growth rate in qualified small business loans during the second quarter of 2013. On February 25, 2016, the dividend rate increased to 9% per annum, consistent with the Securities Purchase Agreement which states that the rate would increase if the funding was not repaid within 4.5 years after issuance. The Series B preferred stock is nonvoting except for class voting rights on matters that would adversely affect the rights of the holders of the Series B preferred stock. On December 28, 2012, the Company issued 756,511 shares of common stock and 99,971 shares of Series C Preferred Stock in connection with the PSB acquisition. The Series C Preferred Stock is entitled to the payment of noncumulative dividends, if and when declared by the Company’s Board of Directors, at the rate of 4.00% per annum, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year, beginning on April 15, 2013. The Series C Preferred Stock ranks pari passu with the existing Senior Non-Cumulative Perpetual Preferred Stock, Series B, issued in connection with the Company’s participation under the Treasury’s SBLF and senior to the Company’s common stock. The Company may redeem the Series C Preferred Stock, subject to regulatory approval, beginning on or after the fifth anniversary of the closing date of the Merger, at a redemption price equal to the liquidation value of the Series C Preferred Stock, plus declared but unpaid dividends, if any. The Company may also redeem the Series C Preferred Stock, subject to regulatory approval, at the same redemption price prior to the fifth anniversary of the closing date in the event the Series C Preferred Stock no longer qualifies for "Tier 1 Capital” treatment by the applicable federal banking regulators. Holders may convert the Series C Preferred Stock at any time into shares of the Company’s common stock at a conversion price of $18.00 per share, subject to customary anti-dilution adjustments. In addition, on or after the fifth anniversary of the closing date, the Company will have the option to require conversion of the Series C Preferred Stock if the closing price of the Company’s common stock for 20 trading days within any period of 30 consecutive trading days, exceeds 130% of the conversion price.

DERIVATIVES DERIVATIVES

DERIVATIVES DERIVATIVES	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	16. DERIVATIVES On July 6, 2016, the Company entered into two forward interest rate swap contracts on a reverse repurchase agreement and long-term FHLB advances. The interest rate swap contracts were designated as derivative instruments in a cash flow hedge under ASC Topic 815, Derivatives and Hedging to convert forecasted variable interest payment to a fixed rate and the Company has concluded that the forecasted transactions are probable of occurring . For cash flow hedges, the effective portion of the gain or loss related to the derivative instrument is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. The ineffective portion of the gain or loss is reported in earnings immediately. No ineffectiveness related to the interest rate swaps designated as cash flow hedges was recognized in the consolidated statements of income for the year ended December 31, 2016. The accumulated net after-tax income related to the effective cash flow hedge included in accumulated other comprehensive income/loss is reflected in Note 17 - Other Comprehensive (Loss) Income . The following table discloses the notional amounts and fair value of derivative instruments in the Company's balance sheet as of December 31, 2016 and 2015 (in thousands): Notional Amounts Fair Value Type of Hedge December 31, December 31, 2016 2015 2016 2015 Derivatives designated as hedging instruments: Interest rate swaps included in other assets Cash Flow $ 27,500 $ — $ 989 $ —

OTHER COMPREHENSIVE (LOSS) INCO

OTHER COMPREHENSIVE (LOSS) INCOME	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
OTHER COMPREHENSIVE (LOSS) INCOME	OTHER COMPREHENSIVE (LOSS) INCOME The following is a summary of the tax effects allocated to each component of other comprehensive (loss) income (in thousands): December 31, 2016 2015 2014 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount Other comprehensive (loss) income: Securities available-for-sale: Change in unrealized gain/loss during period $ (3,307 ) $ 1,158 $ (2,149 ) $ (2,369 ) $ 829 $ (1,540 ) $ 4,687 $ (1,641 ) $ 3,046 Reclassification adjustment for net gains included in net income (20 ) 7 (13 ) (1,243 ) 435 (808 ) (128 ) 45 (83 ) Derivative instruments designated as cash flow hedges: Change in fair value of derivative instruments designated as cash flow hedges 989 (346 ) 643 — — — — — — Total other comprehensive (loss) income $ (2,338 ) $ 819 $ (1,519 ) $ (3,612 ) $ 1,264 $ (2,348 ) $ 4,559 $ (1,596 ) $ 2,963 The reclassifications out of accumulated other comprehensive income into net earnings are presented below (in thousands): December 31, 2016 2015 2014 Details about Accumulated Other Comprehensive Income/Loss Components Reclassifications Out of Accumulated Other Comprehensive Income/Loss Statement of Earnings Line Item Reclassifications Out of Accumulated Other Comprehensive Income/Loss Statement of Earnings Line Item Reclassifications Out of Accumulated Other Comprehensive Income/Loss Statement of Earnings Line Item Unrealized gains and losses on securities available-for-sale: $ (20 ) Gain on securities, net $ (1,243 ) Gain on securities, net $ (128 ) Gain on securities, net 7 Income tax expense 435 Income tax expense 45 Income tax expense $ (13 ) Net of tax $ (808 ) Net of tax $ (83 ) Net of tax

NET EARNINGS PER COMMON SHARE

NET EARNINGS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
NET EARNINGS PER COMMON SHARE	NET EARNINGS PER COMMON SHARE Following is a summary of the information used in the computation of earnings per common share (in thousands): December 31, 2016 2015 2014 Net earnings available to common stockholders $ 6,578 $ 10,330 $ 18,412 Dividends on Series C preferred stock — 367 378 Adjusted net earnings available to common stockholders $ 6,578 $ 10,697 $ 18,790 Weighted average number of common shares outstanding used in computation of basic earnings per common share 11,263 11,309 11,282 Effect of dilutive securities: Stock options — 5 77 Preferred stock — 507 542 Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share 11,263 11,821 11,901 Following is a summary of the securities that were excluded from the computation of diluted earnings per share because the effects of the shares were anti-dilutive (in thousands): December 31, 2016 2015 2014 Stock options 299 221 25 Restricted stock 15 11 — Shares subject to the outstanding warrant issued in connection with the CPP transaction 104 104 — Convertible preferred stock 507 — —

FINANCIAL INSTRUMENTS WITH OFF-

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Bank is party to various financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. The contract or notional amounts of those instruments reflect the extent of the Bank’s involvement in particular classes of financial instruments. The Bank’s exposure to loan loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and financial guarantees is represented by the contractual amount of those instruments. The Bank uses the same credit policies, including considerations of collateral requirements, in making these commitments and conditional obligations as it does for on-balance sheet instruments. Contract or Notional Amount 2016 2015 Financial instruments whose contract amounts represent credit risk: (in thousands) Commitments to extend credit $ 322,788 $ 306,587 Letters of credit 13,043 10,084 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. Substantially all of these commitments are at variable rates. Commercial letters of credit and financial guarantees are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. Approximately 77% and 91% of these letters of credit were secured by marketable securities, cash on deposit, or other assets at December 31, 2016 and 2015 , respectively.

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2016
Regulatory Capital Requirements [Abstract]
REGULATORY MATTERS	REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of common equity Tier 1 capital, Tier 1 and total capital (as defined in the regulations) to risk-weighted assets (as defined) and to average assets (as defined). As of December 31, 2016 , the most recent notifications from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum common equity Tier I, total risk-based, Tier I risk-based, and Tier I leverage capital ratios as set forth in the table (in thousands). There are no conditions or events since those notifications that management believes has changed the Bank’s category. The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below (in thousands): Actual Required for Minimum Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016: Common equity Tier I capital to risk-weighted assets: Company $ 131,091 8.81 % $ 66,937 4.50 % N/A N/A Bank $ 178,587 12.00 % $ 66,980 4.50 % $ 96,749 6.50 % Total capital to risk-weighted assets: Company $ 212,366 14.28 % $ 118,999 8.00 % N/A N/A Bank $ 197,265 13.25 % $ 119,076 8.00 % $ 148,845 10.00 % Tier I capital to risk-weighted assets: Company $ 193,700 13.02 % $ 89,249 6.00 % N/A N/A Bank $ 178,587 12.00 % $ 89,307 6.00 % $ 119,076 8.00 % Tier I capital to average assets: Company $ 193,700 10.11 % $ 76,609 4.00 % N/A N/A Bank $ 178,587 9.32 % $ 76,623 4.00 % $ 95,779 5.00 % Actual Required for Minimum Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Common equity Tier I capital to risk-weighted assets: Company $ 128,470 8.91 % $ 64,907 4.50 % N/A N/A Bank $ 177,057 12.27 % $ 64,947 4.50 % $ 93,812 6.50 % Total capital to risk-weighted assets: Company $ 209,132 14.50 % $ 115,390 8.00 % N/A N/A Bank $ 195,111 13.52 % $ 115,461 8.00 % $ 144,326 10.00 % Tier I capital to risk-weighted assets: Company $ 191,089 13.25 % $ 86,543 6.00 % N/A N/A Bank $ 177,057 12.27 % $ 86,595 6.00 % $ 115,461 8.00 % Tier I capital to average assets: Company $ 191,089 10.10 % $ 75,689 4.00 % N/A N/A Bank $ 177,057 9.36 % $ 75,683 4.00 % $ 94,603 5.00 % In July 2013, the Federal bank regulatory agencies issued a final rule that will revise their risk-based capital requirements and the method for calculating components of capital and of computing risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. The Basel III rules became effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). The final rule applied to all depository institutions, top-tier bank holding companies with total consolidated assets of $500 million or more and top-tier savings and loan holding companies. The rule established a new common equity Tier 1 minimum capital requirement, increased the minimum capital ratios and assigned a higher risk weight to certain assets based on the risk associated with these assets. Certain provisions of the new rules will be phased in through January 1, 2019.

FAIR VALUE MEASUREMENTS AND DIS

FAIR VALUE MEASUREMENTS AND DISCLOSURES	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS AND DISCLOSURES	FAIR VALUE MEASUREMENTS AND DISCLOSURES The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and other real estate. These nonrecurring fair value adjustments typically involve the application of the lower of cost or market accounting or write-downs of individual assets. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments. Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities which are either recorded or disclosed at fair value. Cash and cash equivalents —The carrying value of cash and cash equivalents is a reasonable estimate of fair value. Time Deposits in Other Banks —Fair values for fixed-rate time deposits are estimated using a discounted cash flow analysis that applies interest rates currently being offered on time deposits of similar terms of maturity. Securities Available-for-Sale —Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Securities are classified as Level 2 within the valuation hierarchy when the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. Level 2 inputs are used to value U.S. Agency securities, mortgage-backed securities, municipal securities, single issue trust preferred securities, certain pooled trust preferred securities, and certain equity securities that are not actively traded. Securities Held-to-Maturity —The fair value of securities held-to-maturity is estimated using the same measurement techniques as securities available-for-sale. Other investments —The carrying value of other investments is a reasonable estimate of fair value. Loans —For disclosure purposes, the fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. The Company does not record loans at fair value on a recurring basis. No adjustment to fair value is taken related to illiquidity discounts. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management uses one of three methods to measure impairment, which, include collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Impaired loans where an allowance is established based on the fair value of collateral or where the loan balance has been charged down to fair value require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and adjusts the appraisal value by taking an additional discount for market conditions and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. For non-performing loans, collateral valuations currently in file are reviewed for acceptability in terms of timeliness and applicability. Although each determination is made based on the facts and circumstances of each credit, generally valuations are no longer considered acceptable when there has been physical deterioration of the property from when it was last appraised, or there has been a significant change in the underlying assumptions of the appraisal. If the valuation is deemed to be unacceptable, a new appraisal is ordered. New appraisals are typically received within 4-6 weeks. While awaiting new appraisals, the valuation in file is utilized, net of discounts. Discounts are derived from available relevant market data, selling costs, taxes, and insurance. Any perceived collateral deficiency utilizing the discounted value is specifically reserved (as required by ASC Topic 310) until the new appraisal is received or charged off. Thus, provisions or charge-offs are recognized in the period the credit is identified as non-performing. The following sources are utilized to set appropriate discounts: market real estate agents, current local sales data, bank history for devaluation of similar property, Sheriff’s valuations and buy/sell contracts. If a real estate agent is used to market and sell the property, values are discounted 6% for selling costs and an additional 4% for taxes, insurance and maintenance costs. Additional discounts may be applied if research from the above sources indicates a discount is appropriate given devaluation of similar property from the time of the initial valuation. Other Real Estate —Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate, and annually thereafter to insure other real estate assets are carried at the lower of carrying value or fair value. Exceptions to obtaining initial appraisals are properties where a buy/sell agreement exists for the loan value or greater, or where we have received a Sheriff’s valuation for properties liquidated through a Sheriff sale. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the other real estate as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and adjusts the appraisal value by taking an additional discount for market conditions and there is no observable market prices, the Company records the other real estate asset as nonrecurring Level 3. Cash Surrender Value of Life Insurance Policies —Fair value for life insurance cash surrender value is based on cash surrender values indicated by the insurance companies. Derivative Instruments —The fair value of derivatives are determined by an independent valuation firm and are estimated using prices of financial instruments with similar characteristics. As a result, they are classified within Level 2 of the fair value hierarchy. Deposits —The fair value of demand deposits, savings accounts, NOW accounts, and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. The estimated fair value does not include customer related intangibles. Securities Sold Under Agreements to Repurchase —The fair value approximates the carrying value of repurchase agreements due to their short-term nature. Short-term Federal Home Loan Bank advances —The fair value approximates the carrying value of short-term FHLB advances due to their short-term nature. Long-term Federal Home Loan Bank advances —The fair value of of long-term FHLB advances is estimated using a discounted cash flow analysis that applies interest rates currently being offered on similar types of borrowings with similar terms. Junior Subordinated Debentures —For junior subordinated debentures that bear interest on a floating basis, the carrying amount approximates fair value. For junior subordinated debentures that bear interest on a fixed rate basis, the fair value is estimated using a discounted cash flow analysis that applies interest rates currently being offered on similar types of borrowings. Commitments to Extend Credit, Standby Letters of Credit and Credit Card Guarantees —Because commitments to extend credit and standby letters of credit are generally short-term and made using variable rates, the carrying value and estimated fair value associated with these instruments are immaterial. Assets Recorded at Fair Value Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands): Assets / Liabilities Measured at Fair Value at December 31, 2016 Fair Value Measurements at December 31, 2016 Description Level 1 Level 2 Level 3 Available-for-sale securities: Obligations of state and political subdivisions $ 29,141 $ — $ 29,141 $ — GSE mortgage-backed securities 73,578 — 73,578 — Collateralized mortgage obligations: residential 220,202 — 220,202 — Collateralized mortgage obligations: commercial 3,082 — 3,082 — Mutual funds 2,059 2,059 — — Corporate debt securities 13,811 — 13,811 — Total available-for-sale securities $ 341,873 $ 2,059 $ 339,814 $ — Derivative instruments $ 989 $ — $ 989 $ — Assets / Liabilities Measured at Fair Value at December 31, 2015 Fair Value Measurements at December 31, 2015 Description Level 1 Level 2 Level 3 Available-for-sale securities: Obligations of state and political subdivisions $ 31,493 $ — $ 31,493 $ — GSE mortgage-backed securities 87,038 — 87,038 — Collateralized mortgage obligations: residential 192,088 — 192,088 — Collateralized mortgage obligations: commercial 5,448 — 5,448 — Mutual funds 2,092 2,092 — — Total available-for-sale securities $ 318,159 $ 2,092 $ 316,067 $ — Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the table above. Impaired loans are level 2 assets measured using appraisals from external parties of the collateral less any prior liens. Other real estate owned are also level 2 assets measured using appraisals from external parties. Assets measured at fair value on a nonrecurring basis are as follows (in thousands): Assets / Liabilities Measured at Fair Value at December 31, 2016 Fair Value Measurements at December 31, 2016 Description Level 1 Level 2 Level 3 Impaired loans $ 26,956 $ — $ 26,956 $ — Other real estate 2,175 — 2,175 — Assets / Liabilities Measured at Fair Value at December 31, 2015 Fair Value Measurements at December 31, 2015 Description Level 1 Level 2 Level 3 Impaired loans $ 17,487 $ — $ 17,487 $ — Other real estate 4,187 — 4,187 — Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The estimated fair values of our financial instruments are as follows at December 31, 2016 and 2015 (in thousands): Fair Value Measurements at December 31, 2016 Using: Carrying Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 82,228 $ 82,228 $ — $ — Securities available-for-sale 341,873 2,059 326,003 — Securities held-to-maturity 98,211 — 98,261 — Other investments 11,355 11,355 — — Loans, net 1,259,710 — 26,956 1,236,133 Cash surrender value of life insurance policies 14,335 — 14,335 — Derivative asset 989 — 989 — Financial liabilities: Non-interest-bearing deposits 414,921 — 414,921 — Interest-bearing deposits 1,164,509 — 1,012,633 150,879 Securities sold under agreements to repurchase 94,461 94,461 — — Long-term Federal Home Loan Bank advances 25,424 — 25,808 — Junior subordinated debentures 22,167 — 22,167 — Fair Value Measurements at December 31, 2015 Using: Carrying Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 89,201 $ 89,201 $ — $ — Securities available-for-sale 318,159 2,092 316,067 — Securities held-to-maturity 116,792 — 117,698 — Other investments 11,188 11,188 — — Loans, net 1,244,634 — 17,487 1,232,497 Cash surrender value of life insurance policies 13,622 — 13,622 — Financial liabilities: Non-interest-bearing deposits 374,261 — 374,261 — Interest-bearing deposits 1,176,589 — 1,007,137 168,633 Securities sold under agreements to repurchase 85,957 85,957 — — Short-term Federal Home Loan Bank advances 25,000 — 25,000 — Long-term Federal Home Loan Bank advances 25,851 — — 26,508 Junior subordinated debentures 22,167 — 22,167 —

OTHER NON-INTEREST INCOME AND E

OTHER NON-INTEREST INCOME AND EXPENSE	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
OTHER NON-INTEREST INCOME AND EXPENSE	OTHER NON-INTEREST INCOME AND EXPENSE For the years ended December 31, 2016 , 2015 , and 2014 , none of the components of other noninterest income were greater than 1% of interest income and noninterest income. Components of other noninterest expense greater than 1% of interest income and noninterest income consisted of the following for the years ended December 31, 2016 , 2015 , and 2014 (in thousands): 2016 2015 2014 Professional fees $ 1,855 $ 1,560 $ 1,802 FDIC fees 1,601 1,513 1,050 Marketing expenses 1,523 1,564 1,658 Corporate development expense 1,572 1,531 1,420 Data processing 1,963 1,888 1,940 Printing and supplies 760 923 1,114 Amortization of intangibles 1,107 1,106 1,106

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company has evaluated all subsequent events and transactions that occurred after December 31, 2016 up through the date of filing this Annual Report on Form 10-K. No events or changes in circumstances were identified that would have an adverse impact on the financial statements.

CONDENSED FINANCIAL INFORMATION

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY	CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY Summarized financial information for MidSouth Bancorp, Inc. (parent company only) follows: Balance Sheets December 31, 2016 and 2015 (in thousands) 2016 2015 Assets Cash and interest-bearing deposits in banks $ 16,705 $ 14,795 Other assets 2,058 2,117 Investment in and advances to subsidiaries 220,906 220,753 Total assets $ 239,669 $ 237,665 Liabilities and Stockholders’ Equity Liabilities: Dividends payable $ 1,835 $ 1,195 Junior subordinated debentures 22,167 22,167 ESOP obligation 1,233 1,093 Other 58 73 Total liabilities 25,293 24,528 Stockholders’ equity 214,376 213,137 Total liabilities and stockholders’ equity $ 239,669 $ 237,665 Statements of Earnings For the Years Ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 Revenue: Dividends from Bank and nonbank subsidiaries $ 9,000 $ 9,000 $ 15,500 Gain on sale of securities — 1,125 — Rental and other income 57 57 87 9,057 10,182 15,587 Expenses: Interest on short- and long-term debt 704 613 1,087 Professional fees 236 253 217 Other expenses 785 733 844 1,725 1,599 2,148 Income before equity in undistributed earnings of subsidiaries and income taxes 7,332 8,583 13,439 Equity in undistributed earnings of subsidiaries 1,529 2,317 4,955 Income tax benefit 578 117 716 Net earnings $ 9,439 $ 11,017 $ 19,110 Statements of Cash Flows For the Years Ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 Cash flows from operating activities: Net earnings $ 9,439 $ 11,017 $ 19,110 Adjustments to reconcile net earnings to net cash provided by operating activities: Undistributed earnings of subsidiaries (1,529 ) (2,317 ) (4,955 ) Gain on sale of securities available-for-sale — (1,125 ) — Other, net 73 528 (872 ) Net cash provided by operating activities 7,983 8,103 13,283 Cash flows from investing activities: Proceeds from prepayments of securities available-for-sale — — 198 Proceeds from sale of securities available-for-sale — 1,392 — Other, net — (83 ) 217 Net cash provided by investing activities — 1,309 415 Cash flows from financing activities: Proceeds from exercise of stock options — 99 643 Payment of preferred dividends (2,221 ) (689 ) (704 ) Payment of common dividends (4,095 ) (4,086 ) (3,838 ) Purchase of treasury stock — — (9 ) Repayment of long-term debt — — (8,217 ) Other, net 243 607 — Net cash used in financing activities (6,073 ) (4,069 ) (12,125 ) Net change in cash and cash equivalents 1,910 5,343 1,573 Cash and cash equivalents at beginning of year 14,795 9,452 7,879 Cash and cash equivalents at end of year $ 16,705 $ 14,795 $ 9,452

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basic of Presentation	Basis of Presentation —The consolidated financial statements include the accounts of MidSouth Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries MidSouth Bank, N.A. (the “Bank”), Financial Services of the South, Inc. (the “Finance Company”), which has liquidated its loan portfolio, and Peoples General Agency (“PGA”). All significant intercompany accounts and transactions have been eliminated in consolidation. We are subject to regulation under the Bank Holding Company Act of 1956. The Bank is primarily regulated by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). We are a financial holding company headquartered in Lafayette, Louisiana operating principally in the community banking business by providing banking services to commercial and retail customers through the Bank. The Bank is community oriented and focuses primarily on offering competitive commercial and consumer loan and deposit services to individuals and small to middle market businesses in Louisiana and central and east Texas. The accounting principles we follow and the methods of applying these principles conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing the financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with or in lieu of foreclosure on loans, the assessment of goodwill for impairment, and valuation allowances associated with the realization of deferred tax assets which are based on future taxable income. Given the current instability of the economic environment, it is reasonably possible that the methodology of the assessment of potential loan losses, losses on other real estate owned, goodwill impairment, and other fair value measurements could change in the near term or could result in impairment going forward.
Cash and cash equivalents	Cash and cash equivalents —Cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in other banks with original maturities of less than 90 days, and federal funds sold.
Investment Securities	Investment Securities —We determine the appropriate classification of debt securities at the time of purchase and reassesses this classification periodically. Trading account securities are held for resale in anticipation of short-term market movements. Debt securities are classified as held-to-maturity when we have the positive intent and ability to hold the securities to maturity. Securities not classified as held-to-maturity or trading are classified as available-for-sale. We had no trading account securities during the three years ended December 31, 2016 . Held-to-maturity securities are stated at amortized cost. Available-for-sale securities are stated at fair value, with unrealized gains and losses, net of deferred taxes, reported as a separate component of stockholders’ equity. The amortized cost of debt securities classified as held-to-maturity or available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity or, in the case of mortgage-backed securities, over the estimated life of the security. Amortization, accretion, and accrued interest are included in interest income on securities. Realized gains and losses on the sale of securities available-for-sale are included in earnings and are determined using the specific-identification method. Management evaluates investment securities for other than temporary impairment on a quarterly basis. A decline in the fair value of available-for-sale and held-to-maturity securities below cost that is deemed other than temporary is charged to earnings for a decline in value deemed to be credit related and a new cost basis for the security is established. The decline in value attributed to non-credit related factors is recognized in other comprehensive income.
Other Investments	Other Investments —Other investments include Federal Reserve Bank and Federal Home Loan Bank stock, as well as other correspondent bank stocks and our CRA investment, which have no readily determined market value and are carried at cost. Due to the redemption provisions of the investments, the fair value equals cost and no impairment exists.
Loans	Loans —Loans that we have the intent and ability to hold for the foreseeable future or until maturity are reported at the principal amount outstanding, net of the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on commercial and real estate mortgage loans is calculated by using the simple interest method on the daily balance of the principal amount outstanding. Unearned income on installment loans is credited to operations based on a method which approximates the interest method. In-house legal counsel and the collections department are responsible for validating loans past due for reporting purposes. Once loans are determined to be past due, the collections department actively works with customers to bring loans back to current status. We consider a loan to be impaired when, based upon current information and events, we believe it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans classified as special mention, substandard, or doubtful, based on credit risk rating factors, are reviewed for potential impairment. Our impaired loans include troubled debt restructurings and performing and nonperforming major loans in which full payment of principal or interest is not expected. Although our policy requires that non-major homogenous loans, which include all loans under $250,000 , be evaluated on an overall basis, our current volume of impaired loans allows us to evaluate each impaired loan individually. We calculate the allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. A loan may be impaired but not on nonaccrual status when available information suggests that it is probable the Bank may not receive all contractual principal and interest, however, the loan is still current and payments are received in accordance with the terms of the loan. Payments received for impaired loans not on nonaccrual status are applied to principal and interest. All impaired loans are reviewed, at minimum, on a quarterly basis. Reviews may be performed more frequently if material information is available before the next scheduled quarterly review. Existing valuations are reviewed to determine if additional discounts or new appraisals are required. After this review, when comparing the resulting collateral valuation to the outstanding loan balance, if the discounted collateral value exceeds the loan balance no specific allocation is reserved. All loans included in our impairment analysis are subject to the same procedure and review, with no distinction given to the dollar amount of the loan. Our Special Assets Committee meets monthly to review loans with adverse classifications. Loan officers, loan review officers, and in-house legal counsel contribute updated information on each credit, reviewing potential declines or improvements in the borrower’s repayment ability and our collateral position. If deterioration in our collateral position is determined, additional discounts may be applied to the impairment analysis before the new appraisal is received. The committee makes a determination of whether the loans reviewed have reached a point of collateral dependency and sufficient doubt exists as to collectibility. As a matter of policy, loans are placed on nonaccrual status when, in the judgment of committee members, the probability of collection of interest is deemed insufficient to warrant further accrual. For loans placed on nonaccrual status, the accrual of interest is discontinued and subsequent payments received are applied to the principal balance. Interest income is recorded after principal has been satisfied and as payments are received. Additionally, loans may be placed on nonaccrual status when the loan becomes 90 days past due and any of the following conditions exist: it becomes evident that the borrower will not make payments or will not or cannot meet the Bank’s terms for the renewal of a matured loan, full repayment of principal and interest is not expected, the loan has a credit risk rating of substandard, the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future, or foreclosure action is initiated. When a loan is placed on nonaccrual status, previously accrued but unpaid interest for the current year is deducted from interest income. Prior year unpaid interest is charged to the allowance for loan losses. Some loans may continue accruing after 90 days if the loan is in the process of renewing, being paid off, or the underlying collateral fully supports both the principal and accrued interest and the loan is in the process of collection. Nonaccrual loans may be returned to accrual status if all principal and interest amounts contractually owed are reasonably assured of repayment within a reasonable period and there is a period of at least six months to one year of repayment performance by the borrower depending on the contractual payment terms. When loans are returned to accrual status, interest income that was previously applied to the principal balance is not reversed but is recognized into interest income as an adjustment to the yield over the remaining life of the loan. Our Special Assets Committee must approve the return of loans to accrual status as well as exceptions to any requirements of the non-accrual policy. Generally, commercial, financial, and agricultural loans; construction loans; commercial real estate loans; consumer loans; and finance leases which become 90 days delinquent are either in the process of collection through repossession or foreclosure or are deemed currently uncollectible. The portion of loans deemed currently uncollectible, due to insufficient collateral, are charged-off against the allowance for loan losses. All loans requested to be charged-off must be specifically authorized by in-house legal counsel and the CEO. Requests may be initiated by collection personnel, bank counsel, loan review, and lending personnel. Charge-offs will be reviewed by in-house legal counsel and the CEO to ensure the propriety and accuracy of charge-off recommendations. Factors considered when determining loan collectibility and amount to be charged off for all segments in our loan portfolio include delinquent principal or interest repayment, the ability of borrower to make future payments, collateral value of outstanding debt, and the adequacy of guarantors support. It is the responsibility of in-house legal counsel to report all charge-offs to the Board of Directors or its designated Committee for ratification.
Credit Risk Rating	Credit Risk Rating —We manage credit risk by observing written underwriting standards and lending policy established by the Board of Directors and management to govern all lending activities. The risk management program requires that each individual loan officer review his or her portfolio on a quarterly basis and assign recommended credit ratings on each loan. These efforts are supplemented by independent reviews performed by a loan review officer and other validations performed by the internal audit department. The results of the reviews are reported directly to the Audit Committee of the Board of Directors. Additionally, Bank concentrations are monitored and reported quarterly for risk rating distributions, major standard industry classification segments, real estate concentrations, and collateral distributions. Consumer and residential real estate loans are normally graded at inception, and the grade generally remains the same throughout the life of the loan. Loan grades on commercial, financial, and agricultural; construction; commercial real estate; and finance leases may be changed at any time when circumstances warrant, and are at a minimum reviewed quarterly. Loans can be classified into the following three risk rating groupings: pass, special mention, and substandard/doubtful. Factors considered in determining a risk rating grade include debt service capacity, capital structure/liquidity, management, collateral quality, industry risk, company trends/operating performance, repayment source, revenue diversification/customer concentration, quality of financial information, and financing alternatives. Pass grade signifies the highest quality of loans to loans with reasonable credit risk, which may include borrowers with marginally adequate financial performance, but have the ability to repay the debt. Special mention loans have potential weaknesses that warrant extra attention from the loan officer and other management personnel, but still have the ability to repay the debt. Substandard classification includes loans with well-defined weaknesses with risk of potential loss. Loans classified as doubtful are considered to have little recovery value and are charged off.
Allowance for Loan Losses	Allowance for Loan Losses —The allowance for loan losses is a valuation account available to absorb probable losses on loans. All losses are charged to the allowance for loan losses when the loss actually occurs or when a determination is made that a loss is likely to occur. Recoveries are credited to the allowance for loan losses at the time of recovery. Quarterly, we estimate the probable level of losses in the existing portfolio through consideration of such factors including, but not limited to, past loan loss experience; estimated losses in significant credits; known deterioration in concentrations of credit; trends in nonperforming assets; volume and composition of the loan portfolio, including percentages of special mention, substandard and past due loans; lending policies and control systems; known inherent risks in the portfolio; adverse situations that may affect the borrower’s ability to repay; the estimated value of any underlying collateral; current national and local economic conditions, including the unemployment rate, the price of oil, and real estate absorption time; the experience, ability and depth of lending management; collections personnel experience; and the results of examinations of the loan portfolio by regulatory agencies and others. Based on these estimates, the allowance for loan losses is increased by charges to earnings and decreased by charge-offs (net of recoveries). The allowance is composed of general reserves and specific reserves. General reserves are determined by applying loss percentages to segments of the portfolio. The loss percentages are based on each segment’s historical loss experience, generally over the past three to five years, and adjustment factors derived from conditions in the Bank’s internal and external environment. All loans considered to be impaired are evaluated on an individual basis to determine specific reserve allocations in accordance with GAAP. Loans for which specific reserves are provided are excluded from the calculation of general reserves. We have an internal loan review department that is independent of the lending function to challenge and corroborate the loan grade assigned by the lender and to provide additional analysis in determining the adequacy of the allowance for loan losses. Management and the Board of Directors believe the allowance for loan losses is appropriate at December 31, 2016 . While determination of the allowance for loan losses is based on available information at a given point in time, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to recognize additions or deductions to the allowance based on their judgment and information available to them at the time of their examination.
Derivatives	Derivatives —Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheets and, as required by ASC 815, the Company records all derivatives at fair value. Accounting for changes in fair value of derivatives differs depending on whether the derivative has been designated and qualifies as part of a hedge relationship, and further, on the type of relationship. Derivatives Designated as Hedging Relationships The Company has entered into forward interest rate swap contracts to minimize the variability of future cash flows that is caused by changes in interest rates or other economic factors. These derivative instruments were designated as cash flow hedges under ASC Topic 815, Derivatives and Hedging. For cash flow hedges, the effective portion of the gain or loss related to the derivative instrument is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. The ineffective portion of the gain or loss is reported in earnings immediately. Derivatives Not Designated as Hedging Relationships The Company offers certain derivative instruments directly to qualified commercial lending clients seeking to manage their interest rate risk. These derivative instruments, including interest rate swap agreements, are not designated for hedge accounting and changes in fair value are recognized in earnings immediately. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional balance of interest rate swap agreements held by the Company at December 31, 2016 and 2015 was minimal and not material to the consolidated balance sheets.
Premises and Equipment	Premises and Equipment —Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used to compute depreciation are: Buildings and improvements 10 - 40 years Furniture, fixtures, and equipment 3 - 10 years Automobiles 3 - 5 years Leasehold improvements are amortized over the estimated useful lives of the improvements or the term of the lease, whichever is shorter.
Other Real Estate Owned	Other Real Estate Owned —Real estate properties acquired through, or in lieu of, loan foreclosures are initially recorded at fair value less estimated costs to sell based on a current valuation at the time of foreclosure. After foreclosure, valuations are periodically performed by management and a charge to earnings is recorded if the carrying value of a property exceeds its fair value less estimated costs to sell. Revenues and expenses from operations and changes in the valuation allowance are charged to earnings.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets —Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill and other intangible assets deemed to have an indefinite useful life are not amortized but instead are subject to review for impairment annually, or more frequently if deemed necessary. Also, in connection with business combinations involving banks and branch locations, we generally record core deposit intangibles representing the value of the acquired core deposit base. Core deposit intangibles are amortized over the estimated useful life of the deposit base, generally on either a straight-line basis not exceeding 15 years or an accelerated basis over 10 years . The remaining useful lives of core deposit intangibles are evaluated periodically to determine whether events and circumstances warrant revision of the remaining period of amortization.
Cash Surrender Value of Life Insurance	Cash Surrender Value of Life Insurance —Life insurance contracts represent single premium life insurance contracts on the lives of certain officers of the Company. The Company is the beneficiary of these policies. These contracts are reported at their cash surrender value and changes in the cash surrender value are included in other noninterest income.
Repurchase Agreements	Repurchase Agreements —Securities sold under agreements to repurchase are secured borrowings treated as financing activities and are carried at the amounts at which the securities will be subsequently reacquired as specified in the respective agreements.
Deferred Compensation	Deferred Compensation —We record the expense of deferred compensation agreements over the service periods of the persons covered under these agreements.
Income Taxes	Income Taxes —Deferred tax assets and liabilities are recorded for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits, such as net operating loss carry forwards, are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. In the event the future tax consequences of differences between the financial reporting bases and the tax bases of our assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such assets is required. A valuation allowance is provided when it is more likely than not that a portion or the full amount of the deferred tax asset will not be realized. In assessing the ability to realize the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. A deferred tax liability is not recognized for portions of the allowance for loan losses for income tax purposes in excess of the financial statement balance. Such a deferred tax liability will only be recognized when it becomes apparent that those temporary differences will reverse in the foreseeable future. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent more likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Stock-Based Compensation	Stock-Based Compensation —We expense stock-based compensation based upon the grant date fair value of the related equity award over the requisite service period of the employee.
Basic and Diluted Earnings Per Common Share	Basic and Diluted Earnings Per Common Share —Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is computed by dividing net earnings by the total of the weighted-average number of shares outstanding plus the dilutive effect of outstanding options. The amounts of common stock and additional paid-in capital are adjusted to give retroactive effect to large stock dividends. Small stock dividends, or dividends less than 25% of issued shares at the declaration date, are reflected as an increase in common stock and additional paid-in capital and a decrease in retained earnings for the market value of the shares on the date the dividend is declared.
Comprehensive Income	Comprehensive Income —Generally all recognized revenues, expenses, gains and losses are included in net earnings. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net earnings, are components of comprehensive income. We present comprehensive income in a separate consolidated statement of comprehensive income.
Statements of Cash Flows	Statements of Cash Flows —For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and interest-bearing deposits in other banks with original maturities of less than 90 days. Generally, federal funds are sold for one -day periods.
Recent Accounting Pronouncements	Recent Accounting Pronouncements — ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities is the first ASU issued under the FASB's financial instruments project. ASU 2016-01 primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance in this ASU requires all equity securities with readily determinable fair values to be measured at fair value on the balance sheet, with changes in fair value recorded through earnings. For financial liabilities that are measured at fair value in accordance with the fair value option, the guidance requires changes in the fair value of a financial liabilities attributable to a change in instrument-specific credit risk to be recorded separately in other comprehensive income. This ASU eliminates the requirement to disclose the methods and significant assumptions used to estimate fair value. It does require public entities to use the exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. The effective date of this Update is for fiscal years beginning on or after December 15, 2017. The Company is evaluating the impact, if any, that ASU 2016-01 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-02, Leases (Topic 842) was issued with the intention of improving financial reporting about leasing transactions. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the guidance in the ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company is evaluating the impact that ASU 2016-02 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-09, Compensation - Stock Compensation (Topic 718) was issued as part of the FASB's simplification initiative. Under the new guidance, several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The effective date of this Update is for fiscal years beginning on or after December 15, 2016. The Company is evaluating the impact that ASU 2016-09 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments was issued with the intention of improving financial reporting by requiring timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets not recorded at fair value based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will be required to be implemented through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are effective. The effective date of this Update is for fiscal years beginning on or after December 15, 2019. The Company is evaluating the impact that ASU 2016-13 will have on its financial position, results of operations, and its financial statement disclosures. We expect the new accounting guidance to increase the allowance for loan losses with a resulting negative adjustment to retained earnings, and we will be implementing a new software program during 2017 to enable us to determine the extent of the impact, which could be material. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments was issued to address diversity in practice of how certain cash receipts and cash payments are currently presented and classified in the statement of cash flows. The amendments in the ASU provide guidance on the following issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees and beneficial interests in securitization transactions. Further, the ASU addresses the topic of separately identifiable cash flows and application of the predominance principle. The effective date of this Update is for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is evaluating the impact that ASU 2016-15 will have, if any, on its financial statement disclosures.
Reclassifications	Reclassifications —Certain reclassifications have been made to the prior years’ financial statements in order to conform to the classifications adopted for reporting in 2016 . The reclassifications had no impact on net income or stockholders’ equity.

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Estimated Useful Lives	The estimated useful lives used to compute depreciation are: Buildings and improvements 10 - 40 years Furniture, fixtures, and equipment 3 - 10 years Automobiles 3 - 5 years

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Portfolio of Available-for-Sale Investment Securities	The portfolio of securities consisted of the following (in thousands): December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: Obligations of state and political subdivisions $ 29,935 $ 226 $ 1,020 $ 29,141 GSE mortgage-backed securities 72,144 1,736 302 73,578 Collateralized mortgage obligations: residential 223,602 206 3,606 220,202 Collateralized mortgage obligations: commercial 3,135 — 53 3,082 Mutual funds 2,100 — 41 2,059 Corporate debt securities 13,500 311 — 13,811 $ 344,416 $ 2,479 $ 5,022 $ 341,873 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: Obligations of state and political subdivisions $ 30,750 $ 770 $ 27 $ 31,493 GSE mortgage-backed securities 84,946 2,321 229 87,038 Collateralized mortgage obligations: residential 194,067 297 2,276 192,088 Collateralized mortgage obligations: commercial 5,512 1 65 5,448 Mutual funds 2,100 — 8 2,092 $ 317,375 $ 3,389 $ 2,605 $ 318,159
Portfolio of Held-to-Maturity Securities	December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: Obligations of state and political subdivisions $ 40,515 $ 309 $ 39 $ 40,785 GSE mortgage-backed securities 44,375 426 311 44,490 Collateralized mortgage obligations: residential 8,969 — 323 8,646 Collateralized mortgage obligations: commercial 4,352 — 12 4,340 $ 98,211 $ 735 $ 685 $ 98,261 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: Obligations of state and political subdivisions $ 43,737 $ 697 $ 6 $ 44,428 GSE mortgage-backed securities 55,696 705 131 56,270 Collateralized mortgage obligations: residential 10,803 — 361 10,442 Collateralized mortgage obligations: commercial 6,556 2 — 6,558 $ 116,792 $ 1,404 $ 498 $ 117,698
Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity	The amortized cost and fair value of debt securities at December 31, 2016 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateralized mortgage obligations. Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 2,166 $ 2,179 Due after one year through five years 11,341 11,540 Due after five years through ten years 49,661 51,053 Due after ten years 279,148 275,042 $ 342,316 $ 339,814 Amortized Cost Fair Value Held-to-maturity: Due in one year or less $ 347 $ 347 Due after one year through five years 6,427 6,445 Due after five years through ten years 32,837 33,310 Due after ten years 58,600 58,159 $ 98,211 $ 98,261
Schedule of Investment Securities with Unrealized Losses	Details concerning investment securities with unrealized losses are as follows (in thousands): December 31, 2016 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Available-for-sale: Obligations of state and political subdivisions $ 13,402 $ 1,020 $ — $ — $ 13,402 $ 1,020 GSE mortgage-backed securities 29,119 302 — — 29,119 302 Collateralized mortgage obligations: residential 187,235 3,099 14,194 507 201,429 3,606 Collateralized mortgage obligations: commercial 961 4 2,121 49 3,082 53 Mutual funds 2,059 41 — — 2,059 41 $ 232,776 $ 4,466 $ 16,315 $ 556 $ 249,091 $ 5,022 December 31, 2015 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Available-for-sale: Obligations of state and political subdivisions $ 1,192 $ 27 $ — $ — $ 1,192 $ 27 GSE mortgage-backed securities 21,607 229 — — 21,607 229 Collateralized mortgage obligations: residential 140,999 1,207 30,029 1,069 171,028 2,276 Collateralized mortgage obligations: commercial — — 2,946 65 2,946 65 Mutual funds 2,092 8 — — 2,092 8 $ 165,890 $ 1,471 $ 32,975 $ 1,134 $ 198,865 $ 2,605 December 31, 2016 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Held-to-maturity: Obligations of state and political subdivisions $ 8,054 $ 39 $ — $ — $ 8,054 $ 39 GSE mortgage-backed securities 19,408 311 — — 19,408 311 Collateralized mortgage obligations: residential — — 8,645 323 8,645 323 Collateralized mortgage obligations: commercial $ 4,340 $ 12 — — 4,340 12 $ 31,802 $ 362 $ 8,645 $ 323 $ 40,447 $ 685 December 31, 2015 Securities with losses under 12 months Securities with losses over 12 months Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Held-to-maturity: Obligations of state and political subdivisions $ 541 $ 1 $ 505 $ 5 $ 1,046 $ 6 GSE mortgage-backed securities — — 7,021 131 7,021 131 Collateralized mortgage obligations: residential — — 10,442 361 10,442 361 $ 541 $ 1 $ 17,968 $ 497 $ 18,509 $ 498

LOANS (Tables)

LOANS (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Summary of the Loan Portfolio	The loan portfolio consisted of the following (in thousands): December 31, 2016 2015 Commercial, financial and agricultural $ 459,574 $ 454,028 Real estate – construction 100,959 74,952 Real estate – commercial 481,155 471,141 Real estate – residential 157,872 149,064 Installment loans to individuals 82,660 111,009 Lease financing receivable 1,095 1,968 Other 767 1,483 1,284,082 1,263,645 Less allowance for loan losses (24,372 ) (19,011 ) $ 1,259,710 $ 1,244,634
Summary of Activity in Allowance for Loan Losses	An analysis of the activity in the allowance for loan losses is as follows (in thousands): December 31, 2016 2015 2014 Balance, beginning of year $ 19,011 $ 11,226 $ 8,779 Provision for loan losses 10,600 13,900 5,625 Recoveries 776 459 738 Loans charged-off (6,015 ) (6,574 ) (3,916 ) Balance, end of year $ 24,372 $ 19,011 $ 11,226
Roll Forward of Activity	A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the years ended December 31, 2016 and 2015 is as follows (in thousands): December 31, 2016 Real Estate Coml, fin, and agric Construction Commercial Residential Installment loans to individuals Lease financing receivable Other Total Allowance for loan losses: Beginning balance $ 11,268 $ 819 $ 4,614 $ 816 $ 1,468 $ 14 $ 12 $ 19,011 Charge-offs (4,366 ) — (218 ) (24 ) (1,407 ) — — (6,015 ) Recoveries 459 — 123 5 189 — — 776 Provision 8,696 (234 ) 865 143 1,145 (9 ) (6 ) 10,600 Ending balance $ 16,057 $ 585 $ 5,384 $ 940 $ 1,395 $ 5 $ 6 $ 24,372 Ending balance: individually evaluated for impairment $ 4,369 $ — $ 2,216 $ 260 $ 308 $ — $ — $ 7,153 Ending balance: collectively evaluated for impairment $ 11,688 $ 585 $ 3,168 $ 680 $ 1,087 $ 5 $ 6 $ 17,219 Loans: Ending balance $ 459,574 $ 100,959 $ 481,155 $ 157,872 $ 82,660 $ 1,095 $ 767 $ 1,284,082 Ending balance: individually evaluated for impairment $ 31,473 $ 9 $ 28,689 $ 1,826 $ 541 $ — $ — $ 62,538 Ending balance: collectively evaluated for impairment $ 428,101 $ 100,950 $ 451,887 $ 155,975 $ 82,119 $ 1,095 $ 767 $ 1,220,894 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ 579 $ 71 $ — $ — $ — $ 650 December 31, 2015 Real Estate Coml, fin, and agric Construction Commercial Residential Installment loans to individuals Lease financing receivable Other Total Allowance for loan losses: Beginning balance $ 5,729 $ 954 $ 2,402 $ 810 $ 1,311 $ 16 $ 4 $ 11,226 Charge-offs (4,936 ) (105 ) (183 ) (87 ) (1,263 ) — — (6,574 ) Recoveries 235 3 26 12 183 — — 459 Provision 10,240 (33 ) 2,369 81 1,237 (2 ) 8 13,900 Ending balance $ 11,268 $ 819 $ 4,614 $ 816 $ 1,468 $ 14 $ 12 $ 19,011 Ending balance: individually evaluated for impairment $ 961 $ — $ 1,585 $ 160 $ 221 $ — $ — $ 2,927 Ending balance: collectively evaluated for impairment $ 10,307 $ 819 $ 3,029 $ 656 $ 1,247 $ 14 $ 12 $ 16,084 Loans: Ending balance $ 454,028 $ 74,952 $ 471,141 $ 149,064 $ 111,009 $ 1,968 $ 1,483 $ 1,263,645 Ending balance: individually evaluated for impairment $ 27,718 $ 37 $ 19,890 $ 1,903 $ 404 $ — $ — $ 49,952 Ending balance: collectively evaluated for impairment $ 426,310 $ 74,915 $ 450,631 $ 147,080 $ 110,605 $ 1,968 $ 1,483 $ 1,212,992 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ 620 $ 81 $ — $ — $ — $ 701
Age Analysis of Past Due Loans	An aging analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands): December 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total Loans Recorded Investment > 90 days and Accruing Commercial, financial, and agricultural $ 2,297 $ 902 $ 31,425 $ 34,624 $ 424,950 459,574 $ 96 Real estate - construction 2,613 399 9 3,021 97,938 100,959 — Real estate - commercial 5,159 1,931 25,408 32,498 448,657 481,155 140 Real estate - residential 1,956 207 1,553 3,716 154,156 157,872 16 Installment loans to individuals 756 36 538 1,330 81,330 82,660 16 Lease financing receivable — — — — 1,095 1,095 — Other 89 5 — 94 673 767 — $ 12,870 $ 3,480 $ 58,933 $ 75,283 $ 1,208,799 $ 1,284,082 $ 268 December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current Total Loans Recorded Investment > 90 days and Accruing Commercial, financial, and agricultural $ 1,362 $ 2,317 $ 25,696 $ 29,375 $ 424,653 $ 454,028 $ 59 Real estate - construction 1,047 — 12 1,059 73,893 74,952 — Real estate - commercial 1,164 514 19,512 21,190 449,951 471,141 — Real estate - residential 1,703 367 1,563 3,633 145,431 149,064 19 Installment loans to individuals 1,022 244 409 1,675 109,334 111,009 69 Lease financing receivable — — — — 1,968 1,968 — Other 101 4 — 105 1,378 1,483 — $ 6,399 $ 3,446 $ 47,192 $ 57,037 $ 1,206,608 $ 1,263,645 $ 147
Schedule of Non-Accrual Loans	Non-accrual loans are as follows (in thousands): December 31, 2016 2015 Commercial, financial and agricultural $ 31,461 $ 27,705 Real estate - construction 9 37 Real estate - commercial 28,688 19,907 Real estate - residential 1,881 1,998 Installment loans to individuals 541 404 Lease financing receivable — — Other — — $ 62,580 $ 50,051
Schedule of Loans that are Individually Evaluated for Impairment	Loans that are individually evaluated for impairment are as follows (in thousands): December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial, financial, and agricultural $ 15,101 $ 15,428 $ — $ 18,815 $ 191 Real estate - construction 9 9 — 23 — Real estate - commercial 12,710 12,710 — 9,297 64 Real estate - residential 903 903 — 1,134 — Installment loans to individuals 73 87 — 54 1 Subtotal: 28,796 29,137 — 29,323 256 With an allowance recorded: Commercial, financial, and agricultural 16,372 16,470 4,369 10,781 42 Real estate - commercial 15,979 15,979 2,216 14,992 28 Real estate - residential 923 923 260 730 — Installment loans to individuals 468 478 308 419 11 Subtotal: 33,742 33,850 7,153 26,922 81 Totals: Commercial 60,162 60,587 6,585 53,885 325 Construction 9 9 — 23 — Residential 1,826 1,826 260 1,864 — Consumer 541 565 308 473 12 Grand total: $ 62,538 $ 62,987 $ 7,153 $ 56,245 $ 337 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial, financial, and agricultural $ 22,529 $ 22,793 $ — $ 11,484 $ 745 Real estate - construction 37 37 — 45 — Real estate - commercial 5,886 5,886 — 3,903 97 Real estate - residential 1,365 1,385 — 954 17 Installment loans to individuals 34 34 — 56 — Subtotal: 29,851 30,135 — 16,442 859 With an allowance recorded: Commercial, financial, and agricultural 5,189 6,373 961 3,704 138 Real estate - commercial 14,004 14,004 1,585 9,236 161 Real estate - residential 538 538 160 533 7 Installment loans to individuals 370 384 221 334 8 Subtotal: 20,101 21,299 2,927 13,807 314 Totals: Commercial 47,608 49,056 2,546 28,327 1,141 Construction 37 37 — 45 — Residential 1,903 1,923 160 1,487 24 Consumer 404 418 221 390 8 Grand total: $ 49,952 $ 51,434 $ 2,927 $ 30,249 $ 1,173
Schedule of Classes of Loans by Risk Rating	The following tables present the classes of loans by risk rating (in thousands): December 31, 2016 Commercial Credit Exposure Credit Risk Profile by Creditworthiness Category Commercial, financial, and agricultural Real estate - commercial Total Percentage of Total Pass $ 346,246 $ 420,970 $ 767,216 81.56 % Special mention 22,611 23,085 45,696 4.86 % Substandard 90,300 37,100 127,400 13.54 % Doubtful 417 — 417 0.04 % $ 459,574 $ 481,155 $ 940,729 100.00 % Construction Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - construction Percentage of Total Pass $ 100,775 99.82 % Special mention — — % Substandard 184 0.18 % $ 100,959 100.00 % Residential Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - Residential Percentage of Total Pass $ 153,403 97.17 % Special mention 1,181 0.75 % Substandard 3,288 2.08 % $ 157,872 100.00 % Consumer and Commercial Credit Exposure Credit Risk Profile Based on Payment Activity Installment loans to individuals Lease financing receivable Other Total Percentage of Total Performing $ 82,103 $ 1,095 $ 767 $ 83,965 99.34 % Nonperforming 557 — — 557 0.66 % $ 82,660 $ 1,095 $ 767 $ 84,522 100.00 % December 31, 2015 Commercial Credit Exposure Credit Risk Profile by Creditworthiness Category Commercial, financial, and agricultural Real estate - commercial Total Percentage of Total Pass $ 383,897 $ 412,141 $ 796,038 86.04 % Special mention 32,506 28,217 60,723 6.55 % Substandard 37,353 30,783 68,136 7.36 % Doubtful 272 — 272 0.03 % $ 454,028 $ 471,141 $ 925,169 100.00 % Construction Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - construction Percentage of Total Pass $ 74,794 99.79 % Special mention 34 0.04 % Substandard 124 0.17 % $ 74,952 100.00 % Residential Credit Exposure Credit Risk Profile by Creditworthiness Category Real estate - Residential Percentage of Total Pass $ 144,704 97.08 % Special mention 1,225 0.82 % Substandard 3,135 2.10 % $ 149,064 100.00 % Consumer and Commercial Credit Exposure Credit Risk Profile Based on Payment Activity Installment loans to individuals Lease financing receivable Other Total Percentage of Total Performing $ 110,536 $ 1,968 $ 1,483 $ 113,987 99.59 % Nonperforming 473 — — 473 0.41 % $ 111,009 $ 1,968 $ 1,483 $ 114,460 100.00 %
Summary of Troubled Debt Restructurings	Information about the Company’s TDRs is as follows (in thousands): December 31, 2016 Current Past Due Greater Than 30 Days Nonaccrual TDRs Total TDRs Commercial, financial and agricultural $ 12 $ — $ 24,331 $ 24,343 Real estate - commercial — 140 808 948 $ 12 $ 140 $ 25,139 $ 25,291 December 31, 2015 Current Past Due Greater Than 30 Days Nonaccrual TDRs Total TDRs Commercial, financial and agricultural $ 16 $ — $ 20,865 $ 20,881 Real estate - commercial — 148 — 148 $ 16 $ 148 $ 20,865 $ 21,029
Analysis of Activity in Related Party Loans and Commitments to Extend Credit	An analysis of the 2016 activity with respect to these related party loans and commitments to extend credit is as follows (in thousands): Balance, beginning of year $ 1,840 New loans 671 Repayments and adjustments (560 ) Balance, end of year $ 1,951

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Premises and Equipment	Premises and equipment consisted of the following (in thousands): December 31, 2016 2015 Land $ 17,693 $ 16,253 Buildings and improvements 56,674 54,126 Furniture, fixtures, and equipment 29,042 28,165 Automobiles 1,854 1,787 Leasehold improvements 10,671 10,725 Construction-in-process 899 1,418 116,833 112,474 Less accumulated depreciation and amortization (47,879 ) (43,369 ) $ 68,954 $ 69,105

GOODWILL AND OTHER INTANGIBLE38

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Core Deposit Intangible Assets	A summary of core deposit intangible assets as of December 31, 2016 and 2015 is as follows (in thousands): 2016 2015 Gross carrying amount $ 11,674 $ 11,674 Less accumulated amortization (7,053 ) (5,946 ) Net carrying amount $ 4,621 $ 5,728
Schedule of Estimated Amortization Expense	The estimated amortization expense on the core deposit intangible assets for the five succeeding years and thereafter is as follows (in thousands): 2017 $ 1,106 2018 1,106 2019 1,106 2020 726 2021 577 $ 4,621

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
Summary of Deposits	Deposits consisted of the following (in thousands): December 31, 2016 2015 Noninterest-bearing $ 414,921 $ 374,261 Savings and money market 539,815 531,449 NOW accounts 472,484 475,346 Time deposits less than $250 120,399 132,349 Time deposits $250 or more 31,811 37,445 $ 1,579,430 $ 1,550,850
Schedule of Time Deposits	Time deposits held consist primarily of certificates of deposits. The maturities for these deposits at December 31, 2016 are as follows (in thousands): 2017 $ 115,515 2018 16,311 2019 7,375 2020 6,983 2021 6,024 Thereafter 2 $ 152,210

LONG-TERM FEDERAL HOME LOAN B40

LONG-TERM FEDERAL HOME LOAN BANK ADVANCES (Tables)	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
Scheduled Maturities of Long-term FHLB Advances	The scheduled maturities of long-term FHLB advances at December 31, 2016 are summarized as follows (in thousands): Amount Weighted Average Rate 2017 $ 15,403 3.412 % 2019 10,021 1.985 % Total FHLB advances $ 25,424

JUNIOR SUBORDINATED DEBENTURES

JUNIOR SUBORDINATED DEBENTURES (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Description of Junior Subordinated Debentures	A description of the junior subordinated debentures outstanding is as follows (in thousands): December 31, Date Issued Maturity Date Interest Rate Callable After 2016 2015 July 31, 2001 July 9, 2031 3 month LIBOR plus 3.30% July 31, 2006 $ 5,671 $ 5,671 September 20, 2004 September 20, 2034 3 month LIBOR plus 2.50% September 20, 2009 8,248 8,248 October 12, 2006 October 12, 2036 3 month LIBOR plus 1.85% June 26, 2011 5,155 5,155 June 21, 2007 June 21, 2037 3 month LIBOR plus 1.70% June 15, 2012 3,093 3,093 $ 22,167 $ 22,167

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Annual Minimum Rental Payments	At December 31, 2016 , future annual minimum rental payments due under non-cancellable operating leases are as follows (in thousands): 2017 $ 1,929 2018 1,837 2019 1,847 2020 1,850 2021 1,394 Thereafter 6,002 $ 14,859

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Components of Deferred Tax Assets and Liabilities	Significant components of our deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands): 2016 2015 Deferred tax assets: Allowance for loan losses $ 9,177 $ 7,750 Unrealized losses on securities 890 — Core deposit intangible 436 351 Deferred compensation 696 712 Other 241 55 Total deferred tax assets 11,440 8,868 Deferred tax liabilities: Premises and equipment 3,318 3,634 Goodwill 1,820 1,446 FHLB stock dividends 80 70 Unrealized gains on cash flow hedges 346 — Unrealized gains on securities — 274 Prepaid expenses 306 323 Purchase accounting adjustments on securities 753 854 Other 245 95 Total deferred tax liabilities 6,868 6,696 Net deferred tax asset $ 4,572 $ 2,172
Components of Income Tax Expense	Components of income tax expense are as follows (in thousands): 2016 2015 2014 Current $ 5,439 $ 6,368 $ 8,847 Deferred benefit (1,582 ) (1,785 ) (1,489 ) Total income tax expense $ 3,857 $ 4,583 $ 7,358
Income Tax Reconciliation	The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% on pre-tax income as follows (in thousands): December 31, 2016 2015 2014 Taxes calculated at statutory rate $ 4,654 $ 5,460 $ 9,264 Increase (decrease) resulting from: Tax-exempt interest, net (615 ) (766 ) (923 ) Executive officer life insurance proceeds — — (1,050 ) Other (182 ) (111 ) 67 $ 3,857 $ 4,583 $ 7,358

EMPLOYEE BENEFITS (Tables)

EMPLOYEE BENEFITS (Tables)	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Summary of ESOP Shares	ESOP shares as of December 31, 2016 and 2015 were as follows: 2016 2015 Allocated shares 604,385 570,905 Shares released for allocation 28,451 10,130 Unreleased shares 114,067 80,504 Total ESOP shares 746,903 661,539 Fair value of unreleased shares at December 31 $ 1,551,000 $ 731,000

EMPLOYEE STOCK PLANS (Tables)

EMPLOYEE STOCK PLANS (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	The following table summarizes activity relating to stock options: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2013 432,642 $ 14.13 Granted 17,500 18.99 Exercised (49,560 ) 12.97 Forfeited or expired (42,509 ) 16.24 Outstanding at December 31, 2014 358,073 $ 14.28 Granted 5,000 13.17 Exercised (7,655 ) 12.97 Forfeited or expired (16,042 ) 17.73 Outstanding at December 31, 2015 339,376 $ 14.13 Granted 5,000 9.30 Exercised — — Forfeited or expired (45,381 ) 15.17 Outstanding at December 31, 2016 298,995 $ 13.90 5.95 $ — Exercisable at December 31, 2014 109,691 $ 13.98 Exercisable at December 31, 2015 162,679 13.81 Exercisable at December 31, 2016 203,578 13.74 5.76 $ —
Summary of Changes in Unvested Options	A summary of changes in unvested options for the period ended December 31, 2016 is as follows: Number of Options Weighted Average Grant Date Fair Value Unvested options outstanding, beginning of year 176,697 $ 4.89 Granted 5,000 2.14 Vested (60,085 ) 4.73 Forfeited (26,195 ) 5.36 Unvested options outstanding, end of year 95,417 $ 4.72
Assumptions Made in Estimating the Fair Value of the Options	The following assumptions were made in estimating the fair value of the options granted in 2016 and 2015 : 2016 2015 Risk free rate of interest 1.7 % 1.5 % Expected volatility 37.4 % 37.4 % Dividend yield 4.2 % 2.8 % Average expected life (in years) 5 5 Weighted-average grant-date fair value $ 2.14 $ 3.17
Summary of Activity Relating to Non-Vested Restricted Stock	The following table summarizes activity relating to non-vested restricted stock awards: Number of Shares Weighted-Average Grant Date Fair Value Non-vested at December 31, 2014 — $ — Granted 11,250 13.92 Forfeited — — Vested — — Non-vested at December 31, 2015 11,250 $ 13.92 Granted 4,439 10.97 Forfeited (925 ) 13.92 Vested — — Non-vested at December 31, 2016 14,764 $ 13.03

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]	The following table discloses the notional amounts and fair value of derivative instruments in the Company's balance sheet as of December 31, 2016 and 2015 (in thousands): Notional Amounts Fair Value Type of Hedge December 31, December 31, 2016 2015 2016 2015 Derivatives designated as hedging instruments: Interest rate swaps included in other assets Cash Flow $ 27,500 $ — $ 989 $ —

OTHER COMPREHENSIVE (LOSS) IN47

OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Summary of the Tax Effects Allocated to Each Component of Other Comprehensive (Loss) Income	The following is a summary of the tax effects allocated to each component of other comprehensive (loss) income (in thousands): December 31, 2016 2015 2014 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount Other comprehensive (loss) income: Securities available-for-sale: Change in unrealized gain/loss during period $ (3,307 ) $ 1,158 $ (2,149 ) $ (2,369 ) $ 829 $ (1,540 ) $ 4,687 $ (1,641 ) $ 3,046 Reclassification adjustment for net gains included in net income (20 ) 7 (13 ) (1,243 ) 435 (808 ) (128 ) 45 (83 ) Derivative instruments designated as cash flow hedges: Change in fair value of derivative instruments designated as cash flow hedges 989 (346 ) 643 — — — — — — Total other comprehensive (loss) income $ (2,338 ) $ 819 $ (1,519 ) $ (3,612 ) $ 1,264 $ (2,348 ) $ 4,559 $ (1,596 ) $ 2,963
Reclassification Out of Accumulated Other Comprehensive Income	The reclassifications out of accumulated other comprehensive income into net earnings are presented below (in thousands): December 31, 2016 2015 2014 Details about Accumulated Other Comprehensive Income/Loss Components Reclassifications Out of Accumulated Other Comprehensive Income/Loss Statement of Earnings Line Item Reclassifications Out of Accumulated Other Comprehensive Income/Loss Statement of Earnings Line Item Reclassifications Out of Accumulated Other Comprehensive Income/Loss Statement of Earnings Line Item Unrealized gains and losses on securities available-for-sale: $ (20 ) Gain on securities, net $ (1,243 ) Gain on securities, net $ (128 ) Gain on securities, net 7 Income tax expense 435 Income tax expense 45 Income tax expense $ (13 ) Net of tax $ (808 ) Net of tax $ (83 ) Net of tax

NET EARNINGS PER COMMON SHARE (

NET EARNINGS PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Summary of Information used in the Computation of Earnings per Common Share	Following is a summary of the information used in the computation of earnings per common share (in thousands): December 31, 2016 2015 2014 Net earnings available to common stockholders $ 6,578 $ 10,330 $ 18,412 Dividends on Series C preferred stock — 367 378 Adjusted net earnings available to common stockholders $ 6,578 $ 10,697 $ 18,790 Weighted average number of common shares outstanding used in computation of basic earnings per common share 11,263 11,309 11,282 Effect of dilutive securities: Stock options — 5 77 Preferred stock — 507 542 Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share 11,263 11,821 11,901
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Following is a summary of the securities that were excluded from the computation of diluted earnings per share because the effects of the shares were anti-dilutive (in thousands): December 31, 2016 2015 2014 Stock options 299 221 25 Restricted stock 15 11 — Shares subject to the outstanding warrant issued in connection with the CPP transaction 104 104 — Convertible preferred stock 507 — —

FINANCIAL INSTRUMENTS WITH OF49

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Schedule of Financial Instruments Whose Contract Amounts Represent Credit Risk	The Bank uses the same credit policies, including considerations of collateral requirements, in making these commitments and conditional obligations as it does for on-balance sheet instruments. Contract or Notional Amount 2016 2015 Financial instruments whose contract amounts represent credit risk: (in thousands) Commitments to extend credit $ 322,788 $ 306,587 Letters of credit 13,043 10,084

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2016
Regulatory Capital Requirements [Abstract]
Schedule of Actual Capital Amounts and Ratios	The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below (in thousands): Actual Required for Minimum Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016: Common equity Tier I capital to risk-weighted assets: Company $ 131,091 8.81 % $ 66,937 4.50 % N/A N/A Bank $ 178,587 12.00 % $ 66,980 4.50 % $ 96,749 6.50 % Total capital to risk-weighted assets: Company $ 212,366 14.28 % $ 118,999 8.00 % N/A N/A Bank $ 197,265 13.25 % $ 119,076 8.00 % $ 148,845 10.00 % Tier I capital to risk-weighted assets: Company $ 193,700 13.02 % $ 89,249 6.00 % N/A N/A Bank $ 178,587 12.00 % $ 89,307 6.00 % $ 119,076 8.00 % Tier I capital to average assets: Company $ 193,700 10.11 % $ 76,609 4.00 % N/A N/A Bank $ 178,587 9.32 % $ 76,623 4.00 % $ 95,779 5.00 % Actual Required for Minimum Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Common equity Tier I capital to risk-weighted assets: Company $ 128,470 8.91 % $ 64,907 4.50 % N/A N/A Bank $ 177,057 12.27 % $ 64,947 4.50 % $ 93,812 6.50 % Total capital to risk-weighted assets: Company $ 209,132 14.50 % $ 115,390 8.00 % N/A N/A Bank $ 195,111 13.52 % $ 115,461 8.00 % $ 144,326 10.00 % Tier I capital to risk-weighted assets: Company $ 191,089 13.25 % $ 86,543 6.00 % N/A N/A Bank $ 177,057 12.27 % $ 86,595 6.00 % $ 115,461 8.00 % Tier I capital to average assets: Company $ 191,089 10.10 % $ 75,689 4.00 % N/A N/A Bank $ 177,057 9.36 % $ 75,683 4.00 % $ 94,603 5.00 %

FAIR VALUE MEASUREMENTS AND D51

FAIR VALUE MEASUREMENTS AND DISCLOSURES (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis	Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands): Assets / Liabilities Measured at Fair Value at December 31, 2016 Fair Value Measurements at December 31, 2016 Description Level 1 Level 2 Level 3 Available-for-sale securities: Obligations of state and political subdivisions $ 29,141 $ — $ 29,141 $ — GSE mortgage-backed securities 73,578 — 73,578 — Collateralized mortgage obligations: residential 220,202 — 220,202 — Collateralized mortgage obligations: commercial 3,082 — 3,082 — Mutual funds 2,059 2,059 — — Corporate debt securities 13,811 — 13,811 — Total available-for-sale securities $ 341,873 $ 2,059 $ 339,814 $ — Derivative instruments $ 989 $ — $ 989 $ — Assets / Liabilities Measured at Fair Value at December 31, 2015 Fair Value Measurements at December 31, 2015 Description Level 1 Level 2 Level 3 Available-for-sale securities: Obligations of state and political subdivisions $ 31,493 $ — $ 31,493 $ — GSE mortgage-backed securities 87,038 — 87,038 — Collateralized mortgage obligations: residential 192,088 — 192,088 — Collateralized mortgage obligations: commercial 5,448 — 5,448 — Mutual funds 2,092 2,092 — — Total available-for-sale securities $ 318,159 $ 2,092 $ 316,067 $ —
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis	Assets measured at fair value on a nonrecurring basis are as follows (in thousands): Assets / Liabilities Measured at Fair Value at December 31, 2016 Fair Value Measurements at December 31, 2016 Description Level 1 Level 2 Level 3 Impaired loans $ 26,956 $ — $ 26,956 $ — Other real estate 2,175 — 2,175 — Assets / Liabilities Measured at Fair Value at December 31, 2015 Fair Value Measurements at December 31, 2015 Description Level 1 Level 2 Level 3 Impaired loans $ 17,487 $ — $ 17,487 $ — Other real estate 4,187 — 4,187 —
Schedule of Estimated Fair Values of Financial Instruments	The estimated fair values of our financial instruments are as follows at December 31, 2016 and 2015 (in thousands): Fair Value Measurements at December 31, 2016 Using: Carrying Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 82,228 $ 82,228 $ — $ — Securities available-for-sale 341,873 2,059 326,003 — Securities held-to-maturity 98,211 — 98,261 — Other investments 11,355 11,355 — — Loans, net 1,259,710 — 26,956 1,236,133 Cash surrender value of life insurance policies 14,335 — 14,335 — Derivative asset 989 — 989 — Financial liabilities: Non-interest-bearing deposits 414,921 — 414,921 — Interest-bearing deposits 1,164,509 — 1,012,633 150,879 Securities sold under agreements to repurchase 94,461 94,461 — — Long-term Federal Home Loan Bank advances 25,424 — 25,808 — Junior subordinated debentures 22,167 — 22,167 — Fair Value Measurements at December 31, 2015 Using: Carrying Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 89,201 $ 89,201 $ — $ — Securities available-for-sale 318,159 2,092 316,067 — Securities held-to-maturity 116,792 — 117,698 — Other investments 11,188 11,188 — — Loans, net 1,244,634 — 17,487 1,232,497 Cash surrender value of life insurance policies 13,622 — 13,622 — Financial liabilities: Non-interest-bearing deposits 374,261 — 374,261 — Interest-bearing deposits 1,176,589 — 1,007,137 168,633 Securities sold under agreements to repurchase 85,957 85,957 — — Short-term Federal Home Loan Bank advances 25,000 — 25,000 — Long-term Federal Home Loan Bank advances 25,851 — — 26,508 Junior subordinated debentures 22,167 — 22,167 —

OTHER NON-INTEREST INCOME AND52

OTHER NON-INTEREST INCOME AND EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
Components of Other Noninterest Expense	Components of other noninterest expense greater than 1% of interest income and noninterest income consisted of the following for the years ended December 31, 2016 , 2015 , and 2014 (in thousands): 2016 2015 2014 Professional fees $ 1,855 $ 1,560 $ 1,802 FDIC fees 1,601 1,513 1,050 Marketing expenses 1,523 1,564 1,658 Corporate development expense 1,572 1,531 1,420 Data processing 1,963 1,888 1,940 Printing and supplies 760 923 1,114 Amortization of intangibles 1,107 1,106 1,106

CONDENSED FINANCIAL INFORMATI53

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Tables)	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Financial Information of Parent Company	Summarized financial information for MidSouth Bancorp, Inc. (parent company only) follows: Balance Sheets December 31, 2016 and 2015 (in thousands) 2016 2015 Assets Cash and interest-bearing deposits in banks $ 16,705 $ 14,795 Other assets 2,058 2,117 Investment in and advances to subsidiaries 220,906 220,753 Total assets $ 239,669 $ 237,665 Liabilities and Stockholders’ Equity Liabilities: Dividends payable $ 1,835 $ 1,195 Junior subordinated debentures 22,167 22,167 ESOP obligation 1,233 1,093 Other 58 73 Total liabilities 25,293 24,528 Stockholders’ equity 214,376 213,137 Total liabilities and stockholders’ equity $ 239,669 $ 237,665 Statements of Earnings For the Years Ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 Revenue: Dividends from Bank and nonbank subsidiaries $ 9,000 $ 9,000 $ 15,500 Gain on sale of securities — 1,125 — Rental and other income 57 57 87 9,057 10,182 15,587 Expenses: Interest on short- and long-term debt 704 613 1,087 Professional fees 236 253 217 Other expenses 785 733 844 1,725 1,599 2,148 Income before equity in undistributed earnings of subsidiaries and income taxes 7,332 8,583 13,439 Equity in undistributed earnings of subsidiaries 1,529 2,317 4,955 Income tax benefit 578 117 716 Net earnings $ 9,439 $ 11,017 $ 19,110 Statements of Cash Flows For the Years Ended December 31, 2016, 2015, and 2014 (in thousands) 2016 2015 2014 Cash flows from operating activities: Net earnings $ 9,439 $ 11,017 $ 19,110 Adjustments to reconcile net earnings to net cash provided by operating activities: Undistributed earnings of subsidiaries (1,529 ) (2,317 ) (4,955 ) Gain on sale of securities available-for-sale — (1,125 ) — Other, net 73 528 (872 ) Net cash provided by operating activities 7,983 8,103 13,283 Cash flows from investing activities: Proceeds from prepayments of securities available-for-sale — — 198 Proceeds from sale of securities available-for-sale — 1,392 — Other, net — (83 ) 217 Net cash provided by investing activities — 1,309 415 Cash flows from financing activities: Proceeds from exercise of stock options — 99 643 Payment of preferred dividends (2,221 ) (689 ) (704 ) Payment of common dividends (4,095 ) (4,086 ) (3,838 ) Purchase of treasury stock — — (9 ) Repayment of long-term debt — — (8,217 ) Other, net 243 607 — Net cash used in financing activities (6,073 ) (4,069 ) (12,125 ) Net change in cash and cash equivalents 1,910 5,343 1,573 Cash and cash equivalents at beginning of year 14,795 9,452 7,879 Cash and cash equivalents at end of year $ 16,705 $ 14,795 $ 9,452

SUMMARY OF SIGNIFICANT ACCOUN54

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2016USD ($)Grade
Loans [Abstract]
Amount of non-major homogenous loan, maximum | $	$ 250,000
Number of days past due for loan to be placed on nonaccrual status	90 days
Period of repayment performance for nonaccrual loan to be returned to accrual status, lower range limit	6 months
Period of repayment performance for nonaccrual loan to be returned to accrual status, upper range limit	1 year
Credit Risk Rating [Abstract]
Number of risk rating grades | Grade	3
Allowance for Loan Losses [Abstract]
Period of historical loss experience in determining general reserves, minimum	3 years
Period of historical loss experience in determining general reserves, maximum	5 years
Basic and Diluted Earnings Per Common Share [Abstract]
Percentage of issued shares on which small stock dividend is declared, maximum (in hundredths)	25.00%
Statements of Cash Flows [Abstract]
Period over which federal funds are sold	1 day
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years
Furniture, fixtures, and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Furniture, fixtures, and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Automobiles | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Automobiles | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Core deposit intangibles | Straight-line basis
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years
Core deposit intangibles | Accelerated basis
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years

INVESTMENT SECURITIES - Portfol

INVESTMENT SECURITIES - Portfolio of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale:
Amortized Cost	$ 344,416	$ 317,375
Gross Unrealized Gains	2,479	3,389
Gross Unrealized Losses	5,022	2,605
Securities available-for-sale	341,873	318,159
Obligations of state and political subdivisions
Available-for-sale:
Amortized Cost	29,935	30,750
Gross Unrealized Gains	226	770
Gross Unrealized Losses	1,020	27
Securities available-for-sale	29,141	31,493
GSE mortgage-backed securities
Available-for-sale:
Amortized Cost	72,144	84,946
Gross Unrealized Gains	1,736	2,321
Gross Unrealized Losses	302	229
Securities available-for-sale	73,578	87,038
Collateralized mortgage obligations: residential
Available-for-sale:
Amortized Cost	223,602	194,067
Gross Unrealized Gains	206	297
Gross Unrealized Losses	3,606	2,276
Securities available-for-sale	220,202	192,088
Collateralized mortgage obligations: commercial
Available-for-sale:
Amortized Cost	3,135	5,512
Gross Unrealized Gains	0	1
Gross Unrealized Losses	53	65
Securities available-for-sale	3,082	5,448
Mutual funds
Available-for-sale:
Amortized Cost	2,100	2,100
Gross Unrealized Gains	0	0
Gross Unrealized Losses	41	8
Securities available-for-sale	2,059	$ 2,092
Corporate debt securities
Available-for-sale:
Amortized Cost	13,500
Gross Unrealized Gains	311
Gross Unrealized Losses	0
Securities available-for-sale	$ 13,811

INVESTMENT SECURITIES - Portf56

INVESTMENT SECURITIES - Portfolio of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Held-to-maturity:
Amortized Cost	$ 98,211	$ 116,792
Gross Unrealized Gains	735	1,404
Gross Unrealized Losses	685	498
Fair Value	98,261	117,698
Obligations of state and political subdivisions
Held-to-maturity:
Amortized Cost	40,515	43,737
Gross Unrealized Gains	309	697
Gross Unrealized Losses	39	6
Fair Value	40,785	44,428
GSE mortgage-backed securities
Held-to-maturity:
Amortized Cost	44,375	55,696
Gross Unrealized Gains	426	705
Gross Unrealized Losses	311	131
Fair Value	44,490	56,270
Collateralized mortgage obligations: residential
Held-to-maturity:
Amortized Cost	8,969	10,803
Gross Unrealized Gains	0	0
Gross Unrealized Losses	323	361
Fair Value	8,646	10,442
Collateralized mortgage obligations: commercial
Held-to-maturity:
Amortized Cost	4,352	6,556
Gross Unrealized Gains	0	2
Gross Unrealized Losses	12	0
Fair Value	$ 4,340	$ 6,558

INVESTMENT SECURITIES - Summary

INVESTMENT SECURITIES - Summary of Amortized Cost and Fair Value - Available-for-Sale (Details) $ in Thousands	Dec. 31, 2016USD ($)
Amortized Cost
Due in one year or less	$ 2,166
Due after one year through five years	11,341
Due after five years through ten years	49,661
Due after ten years	279,148
Amortized Cost	342,316
Fair Value
Due in one year or less	2,179
Due after one year through five years	11,540
Due after five years through ten years	51,053
Due after ten years	275,042
Securities available-for-sale	$ 339,814

INVESTMENT SECURITIES - Summa58

INVESTMENT SECURITIES - Summary of Amortized Cost and Fair Value - Held-To-Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized Cost
Due in one year or less	$ 347
Due after one year through five years	6,427
Due after five years through ten years	32,837
Due after ten years	58,600
Amortized Cost	98,211	$ 116,792
Fair Value
Due in one year or less	347
Due after one year through five years	6,445
Due after five years through ten years	33,310
Due after ten years	58,159
Fair Value	$ 98,261	$ 117,698

INVESTMENT SECURITIES - Summa59

INVESTMENT SECURITIES - Summary of Unrealized Losses - Available-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Securities with losses under 12 months, Fair Value	$ 232,776	$ 165,890
Securities with losses under 12 months, Gross Unrealized Loss	4,466	1,471
Securities with losses over 12 months, Fair Value	16,315	32,975
Securities with losses over 12 months, Gross Unrealized Loss	556	1,134
Total, Fair Value	249,091	198,865
Total, Gross Unrealized Loss	5,022	2,605
Obligations of state and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Securities with losses under 12 months, Fair Value	13,402	1,192
Securities with losses under 12 months, Gross Unrealized Loss	1,020	27
Securities with losses over 12 months, Fair Value	0	0
Securities with losses over 12 months, Gross Unrealized Loss	0	0
Total, Fair Value	13,402	1,192
Total, Gross Unrealized Loss	1,020	27
GSE mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Securities with losses under 12 months, Fair Value	29,119	21,607
Securities with losses under 12 months, Gross Unrealized Loss	302	229
Securities with losses over 12 months, Fair Value	0	0
Securities with losses over 12 months, Gross Unrealized Loss	0	0
Total, Fair Value	29,119	21,607
Total, Gross Unrealized Loss	302	229
Collateralized mortgage obligations: residential
Schedule of Available-for-sale Securities [Line Items]
Securities with losses under 12 months, Fair Value	187,235	140,999
Securities with losses under 12 months, Gross Unrealized Loss	3,099	1,207
Securities with losses over 12 months, Fair Value	14,194	30,029
Securities with losses over 12 months, Gross Unrealized Loss	507	1,069
Total, Fair Value	201,429	171,028
Total, Gross Unrealized Loss	3,606	2,276
Collateralized mortgage obligations: commercial
Schedule of Available-for-sale Securities [Line Items]
Securities with losses under 12 months, Fair Value	961	0
Securities with losses under 12 months, Gross Unrealized Loss	4	0
Securities with losses over 12 months, Fair Value	2,121	2,946
Securities with losses over 12 months, Gross Unrealized Loss	49	65
Total, Fair Value	3,082	2,946
Total, Gross Unrealized Loss	53	65
Mutual funds
Schedule of Available-for-sale Securities [Line Items]
Securities with losses under 12 months, Fair Value	2,059	2,092
Securities with losses under 12 months, Gross Unrealized Loss	41	8
Securities with losses over 12 months, Fair Value	0	0
Securities with losses over 12 months, Gross Unrealized Loss	0	0
Total, Fair Value	2,059	2,092
Total, Gross Unrealized Loss	$ 41	$ 8

INVESTMENT SECURITIES - Summa60

INVESTMENT SECURITIES - Summary of Unrealized Losses - Held-to-Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Securities with losses under 12 months, Fair Value	$ 31,802	$ 541
Securities with losses under 12 months, Gross Unrealized Loss	362	1
Securities with losses over 12 months, Fair Value	8,645	17,968
Securities with losses over 12 months, Gross Unrealized Loss	323	497
Total, Fair Value	40,447	18,509
Total, Gross Unrealized Loss	685	498
Obligations of state and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Securities with losses under 12 months, Fair Value	8,054	541
Securities with losses under 12 months, Gross Unrealized Loss	39	1
Securities with losses over 12 months, Fair Value	0	505
Securities with losses over 12 months, Gross Unrealized Loss	0	5
Total, Fair Value	8,054	1,046
Total, Gross Unrealized Loss	39	6
GSE mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Securities with losses under 12 months, Fair Value	19,408	0
Securities with losses under 12 months, Gross Unrealized Loss	311	0
Securities with losses over 12 months, Fair Value	0	7,021
Securities with losses over 12 months, Gross Unrealized Loss	0	131
Total, Fair Value	19,408	7,021
Total, Gross Unrealized Loss	311	131
Collateralized mortgage obligations: residential
Schedule of Held-to-maturity Securities [Line Items]
Securities with losses under 12 months, Fair Value	0	0
Securities with losses under 12 months, Gross Unrealized Loss	0	0
Securities with losses over 12 months, Fair Value	8,645	10,442
Securities with losses over 12 months, Gross Unrealized Loss	323	361
Total, Fair Value	8,645	10,442
Total, Gross Unrealized Loss	323	$ 361
Collateralized mortgage obligations: commercial
Schedule of Held-to-maturity Securities [Line Items]
Securities with losses under 12 months, Fair Value	4,340
Securities with losses under 12 months, Gross Unrealized Loss	12
Securities with losses over 12 months, Gross Unrealized Loss	0
Total, Fair Value	4,340
Total, Gross Unrealized Loss	$ 12

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details)	12 Months Ended
	Dec. 31, 2016USD ($)security	Dec. 31, 2015USD ($)security
Investments, Debt and Equity Securities [Abstract]
Number of private-label collateralized mortgage obligations | security	2
Combined balance of private-label collateralized mortgage obligations	$ 18,000	$ 27,000
Number of securities in unrealized loss positions | security	80
Unrealized losses as a percentage of individual securities, amortized cost basis	1.93%
Unrealized losses as percentage of Company's total amortized cost basis	1.29%
Number of securities in an unrealized loss position for more than 12 months | security	10
Amortized cost basis of securities in a continuous loss position	$ 25,800,000
Unrealized loss on securities in a continuous loss position	879,000
Impairment related to credit quality	$ 0
Number of available-for-sale securities sold | security		22
Available-for-sale Securities, Gross Realized Gain (Loss)		$ 1,200,000
Number of available-for-sale securities sold with gains | security	2	12
Available-for-sale securities, total gains	$ 20,000	$ 1,400,000
Number of available-for-sale securities sold with loss | security		10
Available-for-sale securities sold at a loss		$ 135,000
Securities pledged as collateral for public funding	$ 293,400,000	$ 285,400,000

LOANS - Summary of Loan Portfol

LOANS - Summary of Loan Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loan portfolio [Abstract]
Ending balance	$ 1,284,082	$ 1,263,645
Less allowance for loan losses	(24,372)	(19,011)
Loans, net	1,259,710	1,244,634
Commercial, financial and agricultural
Loan portfolio [Abstract]
Ending balance	459,574	454,028
Real estate – construction
Loan portfolio [Abstract]
Ending balance	100,959	74,952
Real estate – commercial
Loan portfolio [Abstract]
Ending balance	481,155	471,141
Real estate – residential
Loan portfolio [Abstract]
Ending balance	157,872	149,064
Installment loans to individuals
Loan portfolio [Abstract]
Ending balance	82,660	111,009
Lease financing receivable
Loan portfolio [Abstract]
Ending balance	1,095	1,968
Other
Loan portfolio [Abstract]
Ending balance	$ 767	$ 1,483

LOANS - Activity in the Allowan

LOANS - Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for loan losses:
Beginning balance	$ 19,011	$ 11,226	$ 8,779
Provision for loan losses	10,600	13,900	5,625
Recoveries	776	459	738
Loans charged-off	(6,015)	(6,574)	(3,916)
Ending balance	$ 24,372	$ 19,011	$ 11,226

LOANS - Roll Forward of Activit

LOANS - Roll Forward of Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for loan losses:
Beginning balance	$ 19,011	$ 11,226	$ 8,779
Charge-offs	(6,015)	(6,574)	(3,916)
Recoveries	776	459	738
Provision	10,600	13,900	5,625
Ending balance	24,372	19,011	11,226
Ending balance: individually evaluated for impairment	7,153	2,927
Ending balance: collectively evaluated for impairment	17,219	16,084
Loans:
Ending balance	1,284,082	1,263,645
Ending balance: individually evaluated for impairment	62,538	49,952
Ending balance: collectively evaluated for impairment	1,220,894	1,212,992
Ending balance: loans acquired with deteriorated credit quality	650	701
Commercial, financial and agricultural
Allowance for loan losses:
Beginning balance	11,268	5,729
Charge-offs	(4,366)	(4,936)
Recoveries	459	235
Provision	8,696	10,240
Ending balance	16,057	11,268	5,729
Ending balance: individually evaluated for impairment	4,369	961
Ending balance: collectively evaluated for impairment	11,688	10,307
Loans:
Ending balance	459,574	454,028
Ending balance: individually evaluated for impairment	31,473	27,718
Ending balance: collectively evaluated for impairment	428,101	426,310
Ending balance: loans acquired with deteriorated credit quality	0	0
Real estate – construction
Allowance for loan losses:
Beginning balance	819	954
Charge-offs	0	(105)
Recoveries	0	3
Provision	(234)	(33)
Ending balance	585	819	954
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	585	819
Loans:
Ending balance	100,959	74,952
Ending balance: individually evaluated for impairment	9	37
Ending balance: collectively evaluated for impairment	100,950	74,915
Ending balance: loans acquired with deteriorated credit quality	0	0
Real estate – commercial
Allowance for loan losses:
Beginning balance	4,614	2,402
Charge-offs	(218)	(183)
Recoveries	123	26
Provision	865	2,369
Ending balance	5,384	4,614	2,402
Ending balance: individually evaluated for impairment	2,216	1,585
Ending balance: collectively evaluated for impairment	3,168	3,029
Loans:
Ending balance	481,155	471,141
Ending balance: individually evaluated for impairment	28,689	19,890
Ending balance: collectively evaluated for impairment	451,887	450,631
Ending balance: loans acquired with deteriorated credit quality	579	620
Real estate – residential
Allowance for loan losses:
Beginning balance	816	810
Charge-offs	(24)	(87)
Recoveries	5	12
Provision	143	81
Ending balance	940	816	810
Ending balance: individually evaluated for impairment	260	160
Ending balance: collectively evaluated for impairment	680	656
Loans:
Ending balance	157,872	149,064
Ending balance: individually evaluated for impairment	1,826	1,903
Ending balance: collectively evaluated for impairment	155,975	147,080
Ending balance: loans acquired with deteriorated credit quality	71	81
Installment loans to individuals
Allowance for loan losses:
Beginning balance	1,468	1,311
Charge-offs	(1,407)	(1,263)
Recoveries	189	183
Provision	1,145	1,237
Ending balance	1,395	1,468	1,311
Ending balance: individually evaluated for impairment	308	221
Ending balance: collectively evaluated for impairment	1,087	1,247
Loans:
Ending balance	82,660	111,009
Ending balance: individually evaluated for impairment	541	404
Ending balance: collectively evaluated for impairment	82,119	110,605
Ending balance: loans acquired with deteriorated credit quality	0	0
Lease financing receivable
Allowance for loan losses:
Beginning balance	14	16
Charge-offs	0	0
Recoveries	0	0
Provision	(9)	(2)
Ending balance	5	14	16
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	5	14
Loans:
Ending balance	1,095	1,968
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	1,095	1,968
Ending balance: loans acquired with deteriorated credit quality	0	0
Other
Allowance for loan losses:
Beginning balance	12	4
Charge-offs	0	0
Recoveries	0	0
Provision	(6)	8
Ending balance	6	12	$ 4
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	6	12
Loans:
Ending balance	767	1,483
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	767	1,483
Ending balance: loans acquired with deteriorated credit quality	$ 0	$ 0

LOANS - Age Analysis of Past Du

LOANS - Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	$ 75,283	$ 57,037
Current	1,208,799	1,206,608
Loans and Leases Receivable, Net of Deferred Income	1,284,082	1,263,645
Total Loans	1,284,082	1,263,645
Recorded Investment over 90 days and Accruing	268	147
Commercial, financial and agricultural
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	34,624	29,375
Current	424,950	424,653
Loans and Leases Receivable, Net of Deferred Income	459,574	454,028
Total Loans		454,028
Recorded Investment over 90 days and Accruing	96	59
Real estate – construction
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	3,021	1,059
Current	97,938	73,893
Loans and Leases Receivable, Net of Deferred Income	100,959	74,952
Total Loans		74,952
Recorded Investment over 90 days and Accruing	0	0
Real estate – commercial
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	32,498	21,190
Current	448,657	449,951
Loans and Leases Receivable, Net of Deferred Income	481,155	471,141
Total Loans		471,141
Recorded Investment over 90 days and Accruing	140	0
Real estate – residential
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	3,716	3,633
Current	154,156	145,431
Loans and Leases Receivable, Net of Deferred Income	157,872	149,064
Total Loans		149,064
Recorded Investment over 90 days and Accruing	16	19
Installment loans to individuals
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	1,330	1,675
Current	81,330	109,334
Loans and Leases Receivable, Net of Deferred Income	82,660	111,009
Total Loans		111,009
Recorded Investment over 90 days and Accruing	16	69
Lease financing receivable
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	0	0
Current	1,095	1,968
Loans and Leases Receivable, Net of Deferred Income	1,095	1,968
Total Loans		1,968
Recorded Investment over 90 days and Accruing	0	0
Other
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	94	105
Current	673	1,378
Loans and Leases Receivable, Net of Deferred Income	767	1,483
Total Loans		1,483
Recorded Investment over 90 days and Accruing	0	0
Financing Receivables, 30 to 59 Days Past Due [Member]
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	12,870	6,399
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial, financial and agricultural
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	2,297	1,362
Financing Receivables, 30 to 59 Days Past Due [Member] | Real estate – construction
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	2,613	1,047
Financing Receivables, 30 to 59 Days Past Due [Member] | Real estate – commercial
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	5,159	1,164
Financing Receivables, 30 to 59 Days Past Due [Member] | Real estate – residential
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	1,956	1,703
Financing Receivables, 30 to 59 Days Past Due [Member] | Installment loans to individuals
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	756	1,022
Financing Receivables, 30 to 59 Days Past Due [Member] | Lease financing receivable
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Other
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	89	101
Financing Receivables, 60 to 89 Days Past Due [Member]
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	3,480	3,446
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial, financial and agricultural
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	902	2,317
Financing Receivables, 60 to 89 Days Past Due [Member] | Real estate – construction
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	399	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Real estate – commercial
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	1,931	514
Financing Receivables, 60 to 89 Days Past Due [Member] | Real estate – residential
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	207	367
Financing Receivables, 60 to 89 Days Past Due [Member] | Installment loans to individuals
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	36	244
Financing Receivables, 60 to 89 Days Past Due [Member] | Lease financing receivable
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Other
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	5	4
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	58,933	47,192
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial, financial and agricultural
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	31,425	25,696
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real estate – construction
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	9	12
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real estate – commercial
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	25,408	19,512
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real estate – residential
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	1,553	1,563
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Installment loans to individuals
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	538	409
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Lease financing receivable
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other
Age Analysis of Past Due Loans by Class of Loans [Abstract]
Total Past Due	$ 0	$ 0

LOANS - Schedule of Non-Accrual

LOANS - Schedule of Non-Accrual Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	$ 62,580	$ 50,051
Commercial, financial and agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	31,461	27,705
Real estate – construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	9	37
Real estate – commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	28,688	19,907
Real estate – residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	1,881	1,998
Installment loans to individuals
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	541	404
Lease financing receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	0	0
Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on Nonaccrual Status	$ 0	$ 0

LOANS - Individually Evaluated

LOANS - Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
With no related allowance recorded:
Recorded Investment	$ 28,796	$ 29,851
Unpaid Principal Balance	29,137	30,135
Average Recorded Investment	29,323	16,442
Interest Income Recognized	256	859
With an allowance recorded:
Recorded Investment	33,742	20,101
Unpaid Principal Balance	33,850	21,299
Related Allowance	7,153	2,927
Average Recorded Investment	26,922	13,807
Interest Income Recognized	81	314
Totals:
Recorded Investment	62,538	49,952
Unpaid Principal Balance	62,987	51,434
Related Allowance	7,153	2,927
Average Recorded Investment	56,245	30,249
Interest Income Recognized	337	1,173
Commercial, financial and agricultural
With no related allowance recorded:
Recorded Investment	15,101	22,529
Unpaid Principal Balance	15,428	22,793
Average Recorded Investment	18,815	11,484
Interest Income Recognized	191	745
With an allowance recorded:
Recorded Investment	16,372	5,189
Unpaid Principal Balance	16,470	6,373
Related Allowance	4,369	961
Average Recorded Investment	10,781	3,704
Interest Income Recognized	42	138
Totals:
Related Allowance	4,369	961
Real estate – construction
With no related allowance recorded:
Recorded Investment	9	37
Unpaid Principal Balance	9	37
Average Recorded Investment	23	45
Interest Income Recognized	0	0
Real estate – commercial
With no related allowance recorded:
Recorded Investment	12,710	5,886
Unpaid Principal Balance	12,710	5,886
Average Recorded Investment	9,297	3,903
Interest Income Recognized	64	97
With an allowance recorded:
Recorded Investment	15,979	14,004
Unpaid Principal Balance	15,979	14,004
Related Allowance	2,216	1,585
Average Recorded Investment	14,992	9,236
Interest Income Recognized	28	161
Totals:
Related Allowance	2,216	1,585
Real estate – residential
With no related allowance recorded:
Recorded Investment	903	1,365
Unpaid Principal Balance	903	1,385
Average Recorded Investment	1,134	954
Interest Income Recognized	0	17
With an allowance recorded:
Recorded Investment	923	538
Unpaid Principal Balance	923	538
Related Allowance	260	160
Average Recorded Investment	730	533
Interest Income Recognized	0	7
Totals:
Related Allowance	260	160
Installment loans to individuals
With no related allowance recorded:
Recorded Investment	73	34
Unpaid Principal Balance	87	34
Average Recorded Investment	54	56
Interest Income Recognized	1	0
With an allowance recorded:
Recorded Investment	468	370
Unpaid Principal Balance	478	384
Related Allowance	308	221
Average Recorded Investment	419	334
Interest Income Recognized	11	8
Totals:
Related Allowance	308	221
Commercial
With an allowance recorded:
Related Allowance	6,585	2,546
Totals:
Recorded Investment	60,162	47,608
Unpaid Principal Balance	60,587	49,056
Related Allowance	6,585	2,546
Average Recorded Investment	53,885	28,327
Interest Income Recognized	325	1,141
Construction
With an allowance recorded:
Related Allowance	0	0
Totals:
Recorded Investment	9	37
Unpaid Principal Balance	9	37
Related Allowance	0	0
Average Recorded Investment	23	45
Interest Income Recognized	0	0
Residential
With an allowance recorded:
Related Allowance	260	160
Totals:
Recorded Investment	1,826	1,903
Unpaid Principal Balance	1,826	1,923
Related Allowance	260	160
Average Recorded Investment	1,864	1,487
Interest Income Recognized	0	24
Consumer - other
With an allowance recorded:
Related Allowance	308	221
Totals:
Recorded Investment	541	404
Unpaid Principal Balance	565	418
Related Allowance	308	221
Average Recorded Investment	473	390
Interest Income Recognized	$ 12	$ 8

LOANS - Risk Rating (Details)

LOANS - Risk Rating (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 1,284,082	$ 1,263,645
Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Loans	459,574	454,028
Real estate – commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	481,155	471,141
Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 940,729	$ 925,169
Percentage of Total	100.00%	100.00%
Real estate – construction
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 100,959	$ 74,952
Percentage of Total	100.00%	100.00%
Real estate – residential
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 157,872	$ 149,064
Percentage of Total	100.00%	100.00%
Installment loans to individuals
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 82,660	$ 111,009
Lease financing receivable
Financing Receivable, Recorded Investment [Line Items]
Loans	1,095	1,968
Other
Financing Receivable, Recorded Investment [Line Items]
Loans	767	1,483
Consumer and other commercial, total
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 84,522	$ 114,460
Percentage of Total	100.00%	100.00%
Pass | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 346,246	$ 383,897
Pass | Real estate – commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	420,970	412,141
Pass | Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 767,216	$ 796,038
Percentage of Total	81.56%	86.04%
Pass | Real estate – construction
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 100,775	$ 74,794
Percentage of Total	99.82%	99.79%
Pass | Real estate – residential
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 153,403	$ 144,704
Percentage of Total	97.17%	97.08%
Special mention | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 22,611	$ 32,506
Special mention | Real estate – commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	23,085	28,217
Special mention | Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 45,696	$ 60,723
Percentage of Total	4.86%	6.55%
Special mention | Real estate – construction
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 0	$ 34
Percentage of Total	0.00%	0.04%
Special mention | Real estate – residential
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 1,181	$ 1,225
Percentage of Total	0.75%	0.82%
Substandard | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 90,300	$ 37,353
Substandard | Real estate – commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	37,100	30,783
Substandard | Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 127,400	$ 68,136
Percentage of Total	13.54%	7.36%
Substandard | Real estate – construction
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 184	$ 124
Percentage of Total	0.18%	0.17%
Substandard | Real estate – residential
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 3,288	$ 3,135
Percentage of Total	2.08%	2.10%
Doubtful | Commercial, financial and agricultural
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 417	$ 272
Doubtful | Real estate – commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Doubtful | Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 417	$ 272
Percentage of Total	0.04%	0.03%
Performing | Installment loans to individuals
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 82,103	$ 110,536
Performing | Lease financing receivable
Financing Receivable, Recorded Investment [Line Items]
Loans	1,095	1,968
Performing | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	767	1,483
Performing | Consumer and other commercial, total
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 83,965	$ 113,987
Percentage of Total	99.34%	99.59%
Nonperforming | Installment loans to individuals
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 557	$ 473
Nonperforming | Lease financing receivable
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Nonperforming | Other
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Nonperforming | Consumer and other commercial, total
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 557	$ 473
Percentage of Total	0.66%	0.41%

LOANS - Troubled Debt Restructu

LOANS - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Current	$ 12	$ 16
Past Due Greater Than 30 Days	140	148
Nonaccrual TDRs	25,139	20,865
Total TDRs	25,291	21,029
Commercial, financial and agricultural
Financing Receivable, Modifications [Line Items]
Current	12	16
Past Due Greater Than 30 Days	0	0
Nonaccrual TDRs	24,331	20,865
Total TDRs	24,343	20,881
Real estate – commercial
Financing Receivable, Modifications [Line Items]
Current	0	0
Past Due Greater Than 30 Days	140	148
Nonaccrual TDRs	808	0
Total TDRs	$ 948	$ 148

LOANS - Related Parties (Detail

LOANS - Related Parties (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Loans and Leases Receivable, Related Parties [Roll Forward]
Beginning balance	$ 1,840
New loans	671
Repayments and adjustments	(560)
Ending balance	$ 1,951

LOANS - Narrative (Details)

LOANS - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)industry_concentrationloan	Dec. 31, 2015USD ($)loan	Dec. 31, 2014USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of industry segment concentration above threshold limit | industry_concentration	1
Concentration risk of the loan portfolio (more than)	10.00%
Loans exposure in oil and gas industry	$ 237,400
Exposure in the oil and gas industry specified as percentage of total loans	18.50%
Loans on nonaccrual status	$ 62,580	$ 50,051
Loans with exposure in commercial real estate	559,400
Interest lost on nonaccrual loans	3,400	2,000	$ 594
Interest received on nonaccrual loans	$ 168	$ 47	$ 105
Number of loans with a pre-modification balance identified as a TDR | loan	1	1
Pre-modification balance	$ 5,500	$ 21,400
Number of defaults on loans modified as TDRs | loan	1	1
TDR defaulted on modified terms, total	$ 5,500	$ 20,300
Real estate – commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on nonaccrual status	$ 28,688	$ 19,907
Percentage of loans on nonaccrual status	5.10%
Percentage of CRE loans secured by owner occupied commercial properties	48.00%
Oil and gas industry
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans on nonaccrual status	$ 31,900
Percentage of loans on nonaccrual status	13.40%

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 116,833	$ 112,474
Less accumulated depreciation and amortization	(47,879)	(43,369)
Premises and equipment, net	68,954	69,105
Depreciation expense	5,920	6,168	$ 6,062
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	17,693	16,253
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	56,674	54,126
Furniture, fixtures, and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	29,042	28,165
Automobiles
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	1,854	1,787
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	10,671	10,725
Construction-in-process
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 899	$ 1,418

GOODWILL AND OTHER INTANGIBLE73

GOODWILL AND OTHER INTANGIBLE ASSETS - Core Deposits (Details) - Core deposit intangibles - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 11,674	$ 11,674
Less accumulated amortization	(7,053)	(5,946)
Net carrying amount	$ 4,621	$ 5,728

GOODWILL AND OTHER INTANGIBLE74

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense (Details) - Core deposit intangibles - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
2,017	$ 1,106
2,018	1,106
2,019	1,106
2,020	726
2,021	577
Net carrying amount	$ 4,621	$ 5,728

GOODWILL AND OTHER INTANGIBLE75

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 42,171	$ 42,171
Finite-Lived Intangible Assets [Line Items]
Amortization expense	1,107	1,106	$ 1,106
Core deposit intangibles
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 1,100	$ 1,100	$ 1,100

DEPOSITS - Summary (Details)

DEPOSITS - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Noninterest-bearing	$ 414,921	$ 374,261
Savings and money market	539,815	531,449
NOW accounts	472,484	475,346
Time deposits less than $250	120,399	132,349
Time deposits $250 or more	31,811	37,445
Total deposits	$ 1,579,430	$ 1,550,850

DEPOSITS - Time Deposits (Detai

DEPOSITS - Time Deposits (Details) $ in Thousands	Dec. 31, 2016USD ($)
Banking and Thrift [Abstract]
2,017	$ 115,515
2,018	16,311
2,019	7,375
2,020	6,983
2,021	6,024
Thereafter	2
Total time deposits	$ 152,210

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Deposits from related parties	$ 17.6	$ 9.1

SECURITIES SOLD UNDER AGREEME79

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Securities sold under agreements to repurchase	$ 94,461	$ 85,957
Debt to equity threshold evaluation percentage	30.00%	30.00%	30.00%
Retail repurchase agreements
Short-term Debt [Line Items]
Securities sold under agreements to repurchase	$ 82,000	$ 73,500
Average interest rate of outstanding agreements	0.46%	0.48%
Securities pledged as collateral	$ 86,500	$ 75,100
Repurchase agreement with CitiGroup Global Markets, Inc.
Short-term Debt [Line Items]
Securities sold under agreements to repurchase	12,500
Securities pledged as collateral	$ 13,900	$ 17,600
First term of loan	12 months
Fixed interest rate for remainder of term	4.57%	4.57%

SHORT-TERM FEDERAL HOME LOAN 80

SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES (Details)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)
Advances from Federal Home Loan Banks [Abstract]
FHLB short term amount	$ 25,000,000	$ 0
Number of Short-Term Federal Home Loan Bank Advances	1	0
Maturity period for the advances from the Federal Home Loan Bank	4 months
Fixed rate on FHLB advances	0.30%
Short-term and long-term FHLB advances are collateralized	$ 268,600,000	$ 265,900,000
Additional FHLB advances available	$ 218,500,000	$ 240,900,000

LONG-TERM FEDERAL HOME LOAN B81

LONG-TERM FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Long-term Federal Home Loan Bank advances	$ 25,424	$ 25,851
Amount
2,017	15,403
2,019	$ 10,021
Weighted Average Rate
2,017	3.412%
2,019	1.985%

JUNIOR SUBORDINATED DEBENTURE82

JUNIOR SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Junior subordinated debentures	$ 22,167	$ 22,167
Trust Preferred Securities
Debt Instrument [Line Items]
Junior subordinated debentures	22,167	22,167
Trust Preferred Securities | Date Issued: July 31, 2001
Debt Instrument [Line Items]
Junior subordinated debentures	$ 5,671	5,671
Trust Preferred Securities | Date Issued: July 31, 2001 | LIBOR
Debt Instrument [Line Items]
Interest Rate	3.30%
Trust Preferred Securities | Date Issued: September 20, 2004
Debt Instrument [Line Items]
Junior subordinated debentures	$ 8,248	8,248
Trust Preferred Securities | Date Issued: September 20, 2004 | LIBOR
Debt Instrument [Line Items]
Interest Rate	2.50%
Trust Preferred Securities | Date Issued: October 12, 2006
Debt Instrument [Line Items]
Junior subordinated debentures	$ 5,155	5,155
Trust Preferred Securities | Date Issued: October 12, 2006 | LIBOR
Debt Instrument [Line Items]
Interest Rate	1.85%
Trust Preferred Securities | Date Issued: June 21, 2007
Debt Instrument [Line Items]
Junior subordinated debentures	$ 3,093	$ 3,093
Trust Preferred Securities | Date Issued: June 21, 2007 | LIBOR
Debt Instrument [Line Items]
Interest Rate	1.70%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Summary (Details) $ in Thousands	Dec. 31, 2016USD ($)
Future annual minimum rental payments due under non-cancellable operating leases [Abstract]
2,017	$ 1,929
2,018	1,837
2,019	1,847
2,020	1,850
2,021	1,394
Thereafter	6,002
Total future annual minimum rental payments	$ 14,859

COMMITMENTS AND CONTINGENCIES84

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Rental expense under operating leases	$ 2.2	$ 2.5	$ 2.5
Additional FHLB advances available	240.9	$ 218.5
Federal Home Loan Bank advances
Line of Credit Facility [Line Items]
Additional FHLB advances available	240.9
Line of credit
Line of Credit Facility [Line Items]
Amount of federal funds lines of credit available through correspondent banks	53.5
Federal Reserve Bank advances
Line of Credit Facility [Line Items]
Loan collateral pledged	$ 180.5

INCOME TAXES - Components of De

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Allowance for loan losses	$ 9,177	$ 7,750
Unrealized losses on securities	890	0
Deferred Tax Assets, Goodwill and Intangible Assets	436	351
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits	696	712
Other	241	55
Total deferred tax assets	11,440	8,868
Deferred tax liabilities:
Premises and equipment	3,318	3,634
Goodwill	1,820	1,446
FHLB stock dividends	80	70
Deferred Tax Liabilities, Derivatives	346	0
Unrealized gains on securities	0	274
Deferred Tax Liabilities, Prepaid Expenses	306	323
Deferred Tax Liabilities, Investments	753	854
Other	245	95
Total deferred tax liabilities	6,868	6,696
Net deferred tax asset	$ 4,572	$ 2,172

INCOME TAXES - Expense (Details

INCOME TAXES - Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current	$ 5,439	$ 6,368	$ 8,847
Deferred tax benefit	(1,582)	(1,785)	(1,489)
Total income tax expense	$ 3,857	$ 4,583	$ 7,358

INCOME TAXES - Reconciliation (

INCOME TAXES - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
U.S. Federal income tax statutory rate	35.00%	35.00%	35.00%
Taxes calculated at statutory rate	$ 4,654	$ 5,460	$ 9,264
Increase (decrease) resulting from:
Tax-exempt interest, net	(615)	(766)	(923)
Executive officer life insurance proceeds	0	0	(1,050)
Other	(182)	(111)	67
Total income tax expense	$ 3,857	$ 4,583	$ 7,358

EMPLOYEE BENEFITS - Narrative (

EMPLOYEE BENEFITS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
ESOP loan	$ 499	$ 997	$ 283
Number of shares purchased (in shares)	62,014	76,526	16,000
Purchase price per share (in dollars per share)	$ 8.05	$ 13.02	$ 17.71
Total balance of ESOP loan	$ 1,200	$ 1,100
ESOP compensation expense	603	720	$ 720
Deferred compensation distribution	49
Deferred compensation liability	1,400
Deferred compensation expense	60	82	80
Defined contribution plan expense	$ 2	14	7
Defined contribution plan participation service period	90 days
Employer contribution to 401(k) retirement plan	$ 60	$ 60	$ 60

EMPLOYEE BENEFITS - Summary of

EMPLOYEE BENEFITS - Summary of ESOP Shares (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Allocated shares	604,385	570,905
Shares released for allocation	28,451	10,130
Unreleased shares	114,067	80,504
Total ESOP shares	746,903	661,539
Fair value of unreleased shares at December 31	$ 1,551	$ 731

EMPLOYEE STOCK PLANS - Summary

EMPLOYEE STOCK PLANS - Summary of Activity (Details) - Employee stock option - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Options
Outstanding, beginning of period (in shares)	339,376	358,073	432,642
Granted (in shares)	5,000	5,000	17,500
Exercised (in shares)	0	(7,655)	(49,560)
Forfeited or expired (in shares)	(45,381)	(16,042)	(42,509)
Outstanding, end of period (in shares)	298,995	339,376	358,073
Exercisable (in shares)	203,578	162,679	109,691
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 14.13	$ 14.28	$ 14.13
Granted (in dollars per share)	9.30	13.17	18.99
Exercised (in dollars per share)	0	12.97	12.97
Forfeited or expired (in dollars per share)	15.17	17.73	16.24
Outstanding, end of period (in dollars per share)	13.90	14.13	14.28
Exercisable (in dollars per share)	$ 13.74	$ 13.81	$ 13.98
Weighted Average Remaining Contractual Term
Outstanding	5 years 346 days
Exercisable	5 years 277 days
Aggregate Intrinsic Value
Outstanding	$ 0
Exercisable	$ 0

EMPLOYEE STOCK PLANS - Unvested

EMPLOYEE STOCK PLANS - Unvested Options (Details) - Employee stock option - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Options
Unvested number of options outstanding, beginning of year (in shares)	176,697
Granted (in shares)	5,000	5,000	17,500
Vested (in shares)	(60,085)
Forfeited (in shares)	(26,195)
Unvested number of options outstanding, end of year (in shares)	95,417	176,697
Weighted Average Grant Date Fair Value
Unvested number of options outstanding, beginning of year (in dollars per share)	$ 4.89
Granted (in dollars per share)	2.14	$ 3.17
Vested (in dollars per share)	4.73
Forfeited (in dollars per share)	5.36
Unvested number of options outstanding, end of year (in dollars per share)	$ 4.72	$ 4.89

EMPLOYEE STOCK PLANS - Weighted

EMPLOYEE STOCK PLANS - Weighted Average Assumptions (Details) - Employee stock option - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate of interest	1.70%	1.50%
Expected volatility	37.40%	37.40%
Dividend yield	4.20%	2.80%
Average expected life (in years)	5 years	5 years
Weighted-average grant-date fair value	$ 2.14	$ 3.17

EMPLOYEE STOCK PLANS - Restrict

EMPLOYEE STOCK PLANS - Restricted Stock Awards (Details) - Omnibus Incentive Compensation Plan 2007 - Restricted stock - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Unvested restricted stock outstanding, beginning of year (in shares)	11,250	0
Granted (in shares)	4,439	11,250
Forfeited (in shares)	(925)	0
Unvested restricted stock outstanding, end of year (in shares)	14,764	11,250
Weighted-Average Grant Date Fair Value
Unvested restricted stock outstanding, beginning of year (in dollars per share)	$ 13.92	$ 0
Granted (in dollars per share)	10.97	13.92
Forfeited (in dollars per share)	13.92	0
Unvested restricted stock outstanding, end of year (in dollars per share)	$ 13.03	$ 13.92

EMPLOYEE STOCK PLANS - Narrativ

EMPLOYEE STOCK PLANS - Narrative (Details) - USD ($)	Aug. 17, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Feb. 28, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 210,000	$ 355,000	$ 442,000
Employee stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)		298,995	339,376	358,073	432,642
Term		10 years
Options vesting on an annual basis, 20% of group per year (in shares)		256,493
Annual vesting percentage, vesting group 20% per year		20.00%
Options vesting on an annual basis, 16.67% of group per year (in shares)		42,502
Annual vesting percentage, vesting group 16.67% per year		16.67%
Unrecognized compensation cost related to non-vested share-based compensation arrangements		$ 291,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 8 months 12 days
Share-based compensation expense		$ 162,000	$ 336,000	$ 442,000
Intrinsic value of the options exercised		$ 0	10,000	217,000
Omnibus Incentive Compensation Plan 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares outstanding reserved for issuance under the plan (in shares)						525,000
Shares available for grant (in shares)		136,093
Omnibus Incentive Compensation Plan 2007 | Employee stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)		298,995
Omnibus Incentive Compensation Plan 2007 | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years 1 month
Share-based compensation expense		$ 48,000	$ 19,000	$ 0
Shares granted (in shares)		4,439	11,250
Granted (in dollars per share)		$ 10.97	$ 13.92
Unrecognized compensation cost		$ 125,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 25, 2016	Dec. 28, 2012	Aug. 31, 2011	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2016
Class of Stock [Line Items]
Funds available to pay dividends to the Parent Company without regulatory approval						$ 8.8
Series A preferred stock
Class of Stock [Line Items]
Dividend rate increase required if funding not repaid, term			4 years 6 months
Stock redeemed during the period (in shares)			20,000
Stated value (in dollars per share)			$ 1,000
Series B preferred stock
Class of Stock [Line Items]
Stock issued during period (in shares)			32,000
Dividend rate on preferred stock	9.00%			1.00%
Proceeds from issuance of preferred stock used for additional capital			$ 12
Target growth rate in qualified small business loans					10.00%
Common stock
Class of Stock [Line Items]
Stock issued during period (in shares)		756,511
Series C Preferred Stock
Class of Stock [Line Items]
Stock issued during period (in shares)		99,971
Dividend rate on preferred stock						4.00%
Conversion price (in dollars per share)						$ 18
Company right period to require conversion in trading days						20 days
Company right period to require conversion in consecutive days						30 days
Company right to require conversion above conversion price						130.00%

DERIVATIVES (Details)

DERIVATIVES (Details)	12 Months Ended
	Dec. 31, 2016USD ($)contract	Dec. 31, 2015USD ($)
Derivative [Line Items]
Number of Interest Rate Derivatives Held | contract	2
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	$ 0
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Derivative [Line Items]
Derivative, Notional Amount	27,500,000	$ 0
Derivative asset	$ 989,000	$ 0

OTHER COMPREHENSIVE (LOSS) IN97

OTHER COMPREHENSIVE (LOSS) INCOME - Summary of the Tax Effects (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Securities available-for-sale, Before Tax Amount
Change in unrealized gain/loss during period	$ (3,307)	$ (2,369)	$ 4,687
Reclassification adjustment for net gains included in net income	(20)	(1,243)	(128)
Securities available-for-sale, Tax Effect
Change in unrealized gain/loss during period	1,158	829	(1,641)
Reclassification adjustment for net gains included in net income	7	435	45
Securities available-for-sale, Net of Tax Amount
Change in unrealized gain/loss during period	(2,149)	(1,540)	3,046
Reclassification adjustment for net gains included in net income	(13)	(808)	(83)
Cash flow hedge derivatives, Before Tax Amount
Change in fair value of derivative instruments designated as cash flow hedges during the year	989	0	0
Cash flow hedge derivatives, Tax Effect
Change in fair value of derivative instruments designated as cash flow hedges	(346)	0	0
Cash Flow Hedge Derivatives, Net of Tax
Change in fair value of derivative instruments designated as cash flow hedges	643	0	0
Total other comprehensive (loss) income, before tax	(2,338)	(3,612)	4,559
Total other comprehensive (loss) income	819	1,264	(1,596)
Total other comprehensive (loss) income, net of tax	$ (1,519)	$ (2,348)	$ 2,963

OTHER COMPREHENSIVE (LOSS) IN98

OTHER COMPREHENSIVE (LOSS) INCOME - Reclassifications (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification adjustment for net gains included in net income	$ (20)	$ (1,243)	$ (128)
Income tax expense	7	435	45
Reclassifications Out of Accumulated Other Comprehensive Income/Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification adjustment for net gains included in net income	(20)	(1,243)	(128)
Income tax expense	7	435	45
Net earnings	$ (13)	$ (808)	$ (83)

NET EARNINGS PER COMMON SHARE99

NET EARNINGS PER COMMON SHARE (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net earnings available to common stockholders	$ 6,578	$ 10,330	$ 18,412
Dividends on Series C preferred stock	0	367	378
Adjusted net earnings available to common stockholders	$ 6,578	$ 10,697	$ 18,790
Weighted average number of common shares outstanding used in computation of basic earnings per common share (in shares)	11,263	11,309	11,282
Effect of dilutive securities:
Stock options (in shares)	0	5	77
Preferred stock (in shares)	0	507	542
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share	11,263	11,821	11,901
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computing diluted earnings per share (in shares)	299	221	25
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computing diluted earnings per share (in shares)	15	11	0
Shares subject to the outstanding warrant issued in connection with the CPP transaction
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computing diluted earnings per share (in shares)	104	104	0
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computing diluted earnings per share (in shares)	507	0	0

FINANCIAL INSTRUMENTS WITH O100

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Commitments to extend credit
Financial instruments whose contract amounts represent credit risk
Contract or Notional Amount	$ 322,788	$ 306,587
Letters of credit
Financial instruments whose contract amounts represent credit risk
Contract or Notional Amount	$ 13,043	$ 10,084
Letters of credit secured by marketable securities	77.00%	91.00%

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Actual
Common equity Tier I capital to risk-weighted assets, Amount	$ 131,091,000	$ 128,470,000
Total capital to risk-weighted assets, Amount	212,366,000	209,132,000
Tier I capital to risk-weighted assets, Amount	193,700,000	191,089,000
Tier I capital to average assets, Amount	$ 193,700,000	$ 191,089,000
Common equity Tier I capital to risk-weighted assets, Amount	8.81%	8.91%
Total capital to risk-weighted assets, Ratio	14.28%	14.50%
Tier I capital to risk-weighted assets, Ratio	13.02%	13.25%
Tier I capital to average assets, Ratio	10.11%	10.10%
Required for Minimum Capital Adequacy Purposes
Common equity Tier I capital to risk-weighted assets, Amount	$ 66,937,000	$ 64,907,000
Total capital to risk-weighted assets, Amount	118,999,000	115,390,000
Tier I capital to risk-weighted assets, Amount	89,249,000	86,543,000
Tier I capital to average assets, Amount	$ 76,609,000	$ 75,689,000
Common equity Tier I capital to risk-weighted assets, Ratio	4.50%	4.50%
Total capital to risk-weighted assets, Ratio	8.00%	8.00%
Tier I capital to risk-weighted assets, Ratio	6.00%	6.00%
Tier I capital to average assets, Ratio	4.00%	4.00%
To be Well Capitalized Under Prompt Corrective Action Provisions
Risk based capital requirement, Consolidated assets minimum	$ 500,000,000
Bank
Actual
Common equity Tier I capital to risk-weighted assets, Amount	178,587,000	$ 177,057,000
Total capital to risk-weighted assets, Amount	197,265,000	195,111,000
Tier I capital to risk-weighted assets, Amount	178,587,000	177,057,000
Tier I capital to average assets, Amount	$ 178,587,000	$ 177,057,000
Common equity Tier I capital to risk-weighted assets, Amount	12.00%	12.27%
Total capital to risk-weighted assets, Ratio	13.25%	13.52%
Tier I capital to risk-weighted assets, Ratio	12.00%	12.27%
Tier I capital to average assets, Ratio	9.32%	9.36%
Required for Minimum Capital Adequacy Purposes
Common equity Tier I capital to risk-weighted assets, Amount	$ 66,980,000	$ 64,947,000
Total capital to risk-weighted assets, Amount	119,076,000	115,461,000
Tier I capital to risk-weighted assets, Amount	89,307,000	86,595,000
Tier I capital to average assets, Amount	$ 76,623,000	$ 75,683,000
Common equity Tier I capital to risk-weighted assets, Ratio	4.50%	4.50%
Total capital to risk-weighted assets, Ratio	8.00%	8.00%
Tier I capital to risk-weighted assets, Ratio	6.00%	6.00%
Tier I capital to average assets, Ratio	4.00%	4.00%
To be Well Capitalized Under Prompt Corrective Action Provisions
Common equity Tier I capital to risk-weighted assets, Amount	$ 96,749,000	$ 93,812,000
Total capital to risk-weighted assets, Amount	148,845,000	144,326,000
Tier I capital to risk-weighted assets, Amount	119,076,000	115,461,000
Tier I capital to average assets, Amount	$ 95,779,000	$ 94,603,000
Common equity Tier I capital to risk-weighted assets, Ratio	6.50%	6.50%
Total capital to risk-weighted assets, Ratio	10.00%	10.00%
Tier I capital to risk-weighted assets, Ratio	8.00%	8.00%
Tier I capital to average assets, Ratio	5.00%	5.00%

FAIR VALUE MEASUREMENTS AND 102

FAIR VALUE MEASUREMENTS AND DISCLOSURES - On a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale securities:
Securities available-for-sale	$ 341,873	$ 318,159
Recurring
Available-for-sale securities:
Obligations of state and political subdivisions	29,141	31,493
GSE mortgage-backed securities	73,578	87,038
Collateralized mortgage obligations: residential	220,202	192,088
Collateralized mortgage obligations: commercial	3,082	5,448
Mutual funds	2,059	2,092
Corporate debt securities	13,811
Securities available-for-sale	341,873	318,159
Recurring | Level 1
Available-for-sale securities:
Obligations of state and political subdivisions	0	0
GSE mortgage-backed securities	0	0
Collateralized mortgage obligations: residential	0	0
Collateralized mortgage obligations: commercial	0	0
Mutual funds	2,059	2,092
Corporate debt securities	0
Securities available-for-sale	2,059	2,092
Recurring | Level 2
Available-for-sale securities:
Obligations of state and political subdivisions	29,141	31,493
GSE mortgage-backed securities	73,578	87,038
Collateralized mortgage obligations: residential	220,202	192,088
Collateralized mortgage obligations: commercial	3,082	5,448
Mutual funds	0	0
Corporate debt securities	13,811
Securities available-for-sale	339,814	316,067
Recurring | Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	0	0
GSE mortgage-backed securities	0	0
Collateralized mortgage obligations: residential	0	0
Collateralized mortgage obligations: commercial	0	0
Mutual funds	0	0
Corporate debt securities	0
Securities available-for-sale	0	0
Nonrecurring
Assets and Liabilities Measured on a Nonrecurring Basis [Abstract]
Impaired loans	26,956	17,487
Other real estate	2,175	4,187
Nonrecurring | Level 1
Assets and Liabilities Measured on a Nonrecurring Basis [Abstract]
Impaired loans	0	0
Other real estate	0	0
Nonrecurring | Level 2
Assets and Liabilities Measured on a Nonrecurring Basis [Abstract]
Impaired loans	26,956	17,487
Other real estate	2,175	4,187
Nonrecurring | Level 3
Assets and Liabilities Measured on a Nonrecurring Basis [Abstract]
Impaired loans	0	0
Other real estate	$ 0	$ 0

FAIR VALUE MEASUREMENTS AND 103

FAIR VALUE MEASUREMENTS AND DISCLOSURES - By Balance Sheet Grouping and Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discounts for selling costs	6.00%
Discount for taxes, insurance and maintenance costs	4.00%
Financial assets:
Securities available-for-sale	$ 341,873	$ 318,159
Securities held-to-maturity	98,261	117,698
Carrying Value
Financial assets:
Cash and cash equivalents	82,228	89,201
Securities available-for-sale	341,873	318,159
Securities held-to-maturity	98,211	116,792
Other investments	11,355	11,188
Loans, net	1,259,710	1,244,634
Cash surrender value of life insurance policies	14,335	13,622
Derivative asset	989
Financial liabilities:
Non-interest-bearing deposits	414,921	374,261
Interest-bearing deposits	1,164,509	1,176,589
Securities sold under agreements to repurchase	94,461	85,957
Short-term Federal Home Loan Bank advances		25,000
Long-term Federal Home Loan Bank advances	25,424	25,851
Junior subordinated debentures	22,167	22,167
Fair Value | Level 1
Financial assets:
Cash and cash equivalents	82,228	89,201
Securities available-for-sale	2,059	2,092
Securities held-to-maturity	0	0
Other investments	11,355	11,188
Loans, net	0	0
Cash surrender value of life insurance policies	0	0
Derivative asset	0
Financial liabilities:
Non-interest-bearing deposits	0	0
Interest-bearing deposits	0	0
Securities sold under agreements to repurchase	94,461	85,957
Short-term Federal Home Loan Bank advances		0
Long-term Federal Home Loan Bank advances	0	0
Junior subordinated debentures	0	0
Fair Value | Level 2
Financial assets:
Cash and cash equivalents	0	0
Securities available-for-sale	326,003	316,067
Securities held-to-maturity	98,261	117,698
Other investments	0	0
Loans, net	26,956	17,487
Cash surrender value of life insurance policies	14,335	13,622
Derivative asset	989
Financial liabilities:
Non-interest-bearing deposits	414,921	374,261
Interest-bearing deposits	1,012,633	1,007,137
Securities sold under agreements to repurchase	0	0
Short-term Federal Home Loan Bank advances		25,000
Long-term Federal Home Loan Bank advances	25,808	0
Junior subordinated debentures	22,167	22,167
Fair Value | Level 3
Financial assets:
Cash and cash equivalents	0	0
Securities available-for-sale	0	0
Securities held-to-maturity	0	0
Other investments	0	0
Loans, net	1,236,133	1,232,497
Cash surrender value of life insurance policies	0	0
Derivative asset	0
Financial liabilities:
Non-interest-bearing deposits	0	0
Interest-bearing deposits	150,879	168,633
Securities sold under agreements to repurchase	0	0
Short-term Federal Home Loan Bank advances		0
Long-term Federal Home Loan Bank advances	0	26,508
Junior subordinated debentures	$ 0	$ 0
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Period when new appraisals are received	28 days
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Period when new appraisals are received	42 days

OTHER NON-INTEREST INCOME AN104

OTHER NON-INTEREST INCOME AND EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Income and Expenses [Abstract]
Threshold for analysis of noninterest income	1.00%
Threshold for analysis of noninterest expense	1.00%
Professional fees	$ 1,855	$ 1,560	$ 1,802
FDIC fees	1,601	1,513	1,050
Marketing expenses	1,523	1,564	1,658
Corporate development expense	1,572	1,531	1,420
Data processing	1,963	1,888	1,940
Printing and supplies	760	923	1,114
Amortization of intangibles	$ 1,107	$ 1,106	$ 1,106

CONDENSED FINANCIAL INFORMAT105

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and interest-bearing deposits in banks	$ 31,687	$ 37,170
Securities available-for-sale	341,873	318,159
Other assets	10,131	6,352
Total assets	1,943,340	1,927,733
Liabilities:
Junior subordinated debentures	22,167	22,167
Other	7,482	4,771
Total liabilities	1,728,964	1,714,596
Stockholders’ equity	214,376	213,137	$ 209,012	$ 190,749
Total liabilities and stockholders’ equity	1,943,340	1,927,733
Expenses:
Professional fees	1,855	1,560	1,802
Income before income taxes	13,296	15,600	26,468
Income tax benefit	(3,857)	(4,583)	(7,358)
Net earnings	9,439	11,017	19,110
Cash flows from operating activities:
Net earnings	9,439	11,017	19,110
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net cash provided by operating activities	26,843	29,185	29,758
Cash flows from investing activities:
Purchases of securities available-for-sale	(104,491)	(156,449)	(1,250)
Proceeds from maturities and calls of securities available-for-sale	68,696	70,934	48,464
Proceeds from sale of securities available-for-sale	6,803	40,277	22,153
Net cash used in investing activities	(39,832)	(12,297)	(65,313)
Cash flows from financing activities:
Proceeds from exercise of stock options	0	99	643
Payment of dividends on preferred stock	(2,221)	(689)	(704)
Payment of dividends on common stock	(4,095)	(4,086)	(3,838)
Repayments of notes payable	0	0	(1,000)
Net cash provided by (used in) financing activities	6,016	(14,559)	62,696
Net (decrease) increase in cash and cash equivalents	(6,973)	2,329	27,141
Cash and cash equivalents, beginning of year	89,201	86,872	59,731
Cash and cash equivalents, end of year	82,228	89,201	86,872
Parent Company
Assets
Cash and interest-bearing deposits in banks	16,705	14,795
Other assets	2,058	2,117
Investment in and advances to subsidiaries	220,906	220,753
Total assets	239,669	237,665
Liabilities:
Dividends payable	1,835	1,195
Junior subordinated debentures	22,167	22,167
ESOP obligation	1,233	1,093
Other	58	73
Total liabilities	25,293	24,528
Stockholders’ equity	214,376	213,137
Total liabilities and stockholders’ equity	239,669	237,665
Revenue:
Dividends from Bank and nonbank subsidiaries	9,000	9,000	15,500
Gain on sale of securities	0	1,125	0
Rental and other income	57	57	87
Total revenue	9,057	10,182	15,587
Expenses:
Interest on short- and long-term debt	704	613	1,087
Professional fees	236	253	217
Other expenses	785	733	844
Total expenses	1,725	1,599	2,148
Income before income taxes	7,332	8,583	13,439
Equity in undistributed earnings of subsidiaries	1,529	2,317	4,955
Income tax benefit	578	117	716
Net earnings	9,439	11,017	19,110
Cash flows from operating activities:
Net earnings	9,439	11,017	19,110
Adjustments to reconcile net earnings to net cash provided by operating activities:
Undistributed earnings of subsidiaries	(1,529)	(2,317)	(4,955)
Gain on sale of securities available-for-sale	0	(1,125)	0
Other, net	73	528	(872)
Net cash provided by operating activities	7,983	8,103	13,283
Cash flows from investing activities:
Proceeds from maturities and calls of securities available-for-sale	0	0	198
Proceeds from sale of securities available-for-sale	0	1,392	0
Other, net	0	(83)	217
Net cash used in investing activities	0	1,309	415
Cash flows from financing activities:
Proceeds from exercise of stock options	0	99	643
Payment of dividends on preferred stock	(2,221)	(689)	(704)
Payment of dividends on common stock	(4,095)	(4,086)	(3,838)
Purchase of treasury stock	0	0	(9)
Repayments of notes payable	0	0	(8,217)
Other, net	243	607	0
Net cash provided by (used in) financing activities	(6,073)	(4,069)	(12,125)
Net (decrease) increase in cash and cash equivalents	1,910	5,343	1,573
Cash and cash equivalents, beginning of year	14,795	9,452	7,879
Cash and cash equivalents, end of year	$ 16,705	$ 14,795	$ 9,452