SB Financial (SBFG) 10-Q11 Aug 172017 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 10, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	SB FINANCIAL GROUP, INC.
Entity Central Index Key	767,405
Trading Symbol	SBFG
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,798,167

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 21,385	$ 17,012
Securities available for sale, at fair value	103,347	90,128
Other securities - FRB and FHLB Stock	3,748	3,748
Total investment securities	107,095	93,876
Loans held for sale	9,437	4,434
Loans, net of unearned income	651,589	644,433
Allowance for loan losses	(7,825)	(7,725)
Net loans	643,764	636,708
Premises and equipment, net	20,740	19,129
Cash surrender value of life insurance	13,859	13,725
Goodwill & other intangibles	16,417	16,422
Foreclosed assets held for sale, net	94	994
Mortgage servicing rights	9,217	8,422
Accrued interest receivable	1,411	1,512
Other assets	4,249	3,771
Total assets	847,668	816,005
Deposits
Non interest bearing demand	124,213	125,189
Interest bearing demand	127,409	131,598
Savings	104,720	95,594
Money market	130,987	122,976
Time deposits	220,004	197,716
Total deposits	707,333	673,073
Advances from Federal Home Loan Bank	20,500	26,500
Repurchase agreements	11,175	10,532
Trust preferred securities	10,310	10,310
Accrued interest payable	563	408
Other liabilities	8,756	8,634
Total liabilities	758,637	729,457
Commitments & Contingent Liabilities
Stockholders' Equity
Preferred stock, Series A	13,983	13,983
Common stock	12,569	12,569
Additional paid-in capital	15,260	15,362
Retained earnings	49,851	46,688
Accumulated other comprehensive income	340	51
Treasury stock, at cost	(2,972)	(2,105)
Total equity	89,031	86,548
Total liabilities and equity	$ 847,668	$ 816,005

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Loans
Taxable	$ 7,243	$ 6,648	$ 14,043	$ 12,908
Nontaxable	21	24	41	33
Securities
Taxable	569	392	1,030	794
Nontaxable	133	149	266	305
Total interest income	7,966	7,213	15,380	14,040
Interest expense
Deposits	863	647	1,611	1,192
Repurchase Agreements & Other	6	4	10	9
Federal Home Loan Bank advances	63	77	149	183
Trust preferred securities	71	62	141	121
Total interest expense	1,003	790	1,911	1,505
Net interest income	6,963	6,423	13,469	12,535
Provision for loan losses	200		200	250
Net interest income after provision for loan losses	6,763	6,423	13,269	12,285
Noninterest income
Wealth Management Fees	704	643	1,371	1,276
Customer service fees	667	680	1,307	1,360
Gain on sale of mtg. loans & OMSR's	2,063	2,284	3,313	3,667
Mortgage loan servicing fees, net	241	(273)	624	(719)
Gain on sale of non-mortgage loans	369	151	799	600
Data service fees	184	233	377	510
Net gain on sale of securities		92		203
Gain/(loss) on sale/disposal of assets		186	2	208
Other income	234	311	471	641
Total non-interest income	4,462	4,307	8,264	7,746
Noninterest expense
Salaries and employee benefits	4,667	4,314	9,053	8,093
Net occupancy expense	552	524	1,112	1,089
Equipment expense	683	639	1,324	1,234
Data processing fees	396	339	766	644
Professional fees	417	326	780	642
Marketing expense	206	199	401	370
Telephone and communication	113	102	229	201
Postage and delivery expense	59	162	233	359
State, local and other taxes	170	171	337	270
Employee expense	183	128	328	246
Other expenses	360	503	625	1,154
Total non-interest expense	7,806	7,407	15,188	14,302
Income before income tax expense	3,419	3,323	6,345	5,729
Income tax expense	1,102	1,058	2,035	1,809
Net income	2,317	2,265	4,310	3,920
Preferred Stock Dividends	244	244	488	488
Net income available to common shareholders	$ 2,073	$ 2,021	$ 3,822	$ 3,432
Common share data:
Basic earnings per common share	$ 0.43	$ 0.41	$ 0.79	$ 0.70
Diluted earnings per common share	$ 0.37	$ 0.35	$ 0.68	$ 0.61
Average common shares outstanding (in thousands):
Basic:	4,827	4,893	4,839	4,894
Diluted:	6,351	6,390	6,366	6,396

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statements of Comprehensive Income [Abstract]
Net Income	$ 2,317	$ 2,265	$ 4,310	$ 3,920
Available-for-sale investment securities:
Gross unrealized holding gain arising in the period	309	480	439	1,570
Related tax expense	(105)	(163)	(149)	(534)
Less: Reclassification for gain realized in income		(92)		(203)
Related tax expense		31		69
Net effect on other comprehensive income	204	256	290	902
Total comprehensive income	$ 2,521	$ 2,521	$ 4,600	$ 4,822

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock
Beginning Balance at Dec. 31, 2015	$ 81,241	$ 13,983	$ 12,569	$ 15,438	$ 40,059	$ 650	$ (1,458)
Net Income	3,920				3,920
Other comprehensive income	902					902
Dividends on common, $0.065 per share	(566)				(566)
Dividends on preferred, $0.1625 per share	(488)				(488)
Restricted stock vesting				(87)			87
Stock options exercised	24			(64)			88
Stock buyback	(163)						(163)
Share based compensation expense	80			80
Ending Balance at Jun. 30, 2016	84,950	13,983	12,569	15,367	42,925	1,552	(1,446)
Beginning Balance at Dec. 31, 2016	86,548	13,983	12,569	15,362	46,688	51	(2,105)
Net Income	4,310				4,310
Other comprehensive income	289					289
Dividends on common, $0.065 per share	(659)				(659)
Dividends on preferred, $0.1625 per share	(488)				(488)
Restricted stock vesting				(163)			163
Stock options exercised	329			(66)			395
Stock buyback	(1,425)						(1,425)
Share based compensation expense	127			127
Ending Balance at Jun. 30, 2017	$ 89,031	$ 13,983	$ 12,569	$ 15,260	$ 49,851	$ 340	$ (2,972)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Dividend common stock, per share amount	$ 0.065	$ 0.055
Dividend preferred stock, per share amount	$ 0.1625	$ 0.1625

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities
Net Income	$ 4,310	$ 3,920
Items providing/(using) cash
Depreciation and amortization	753	696
Provision for loan losses	200	250
Expense of share-based compensation plan	127	80
Amortization of premiums and discounts on securities	315	461
Amortization of intangible assets	5	6
Amortization of originated mortgage servicing rights	521	482
Impairment (recovery) of mortgage servicing rights	4	1,236
Proceeds from sale of loans held for sale	123,708	148,995
Originations of loans held for sale	(129,527)	(142,612)
Gain from sale of loans	(4,112)	(4,267)
(Gain)/loss on sale of assets	47	(181)
Changes in
Interest receivable	101	(137)
Other assets	2,968	(5,870)
Interest payable and other liabilities	155	1,145
Net cash (used in)/provided by operating activities	(425)	4,204
Investing Activities
Purchases of available-for-sale securities	(25,785)	(11,322)
Proceeds from maturities of available-for-sale securities	12,692	7,145
Proceeds from sales of available-for-sale-securities		2,400
Net change in loans	(7,350)	(47,150)
Purchase of premises and equipment and software	(2,364)	(497)
Proceeds from sale of foreclosed assets & equipment	945	661
Net cash used in investing activities	(21,862)	(48,763)
Financing Activities
Net increase in demand deposits, money market, interest checking and savings accounts	11,972	32,482
Net increase in certificates of deposit	22,288	29,365
Net increase in securities sold under agreements to repurchase	643	5,391
Proceeds from FHLB Advances	5,000
Repayments of FHLB Advances	(11,000)	(12,000)
Share repurchase	(1,425)	(163)
Net proceeds from share based compensation plans	329	24
Dividends on Common Stock	(659)	(566)
Dividends on Preferred Stock	(488)	(488)
Net cash provided by financing activities	26,660	54,045
Increase in Cash and Cash Equivalents	4,373	9,486
Cash and Cash Equivalents, Beginning of Year	17,012	20,459
Cash and Cash Equivalents, End of Period	21,385	29,945
Supplemental Cash Flows Information
Interest paid	1,756	1,385
Income taxes paid	2,049	2,309
Transfer of loans to foreclosed assets	$ 94	$ 243

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2017
Basis of Presentation [Abstract]
BASIS OF PRESENTATION	NOTE 1—BASIS OF PRESENTATION SB Financial Group, Inc., an Ohio corporation (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiaries, The State Bank and Trust Company (“State Bank”), RFCBC, Inc. (“RFCBC”), Rurbanc Data Services, Inc. dba RDSI Banking Systems (“RDSI”), and Rurban Statutory Trust II (“RST II”). In addition, State Bank owns all of the outstanding stock of Rurban Mortgage Company (“RMC”) and State Bank Insurance, LLC (“SBI”). The consolidated financial statements include the accounts of the Company, State Bank, RFCBC, RDSI, RMC, and SBI. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows of the Company. Those adjustments consist only of normal recurring adjustments. Results of operations for the six months ended June 30, 2017, are not necessarily indicative of results for the complete year. The condensed consolidated balance sheet of the Company as of December 31, 2016 has been derived from the audited consolidated balance sheet of the Company as of that date. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The following paragraphs summarize the impact of new accounting pronouncements: Accounting Standards Update (ASU) No. 2017-08: Premium Amortization on Purchased Callable Debt This ASU amends the amortization period for certain purchased callable debt securities held at a premium. The Board is shortening the amortization period to the earliest call date. Currently, entities generally amortize the Financial Accounting Standard premium as an adjustment of yield over the contractual life of the instrument. The amendments in this ASU are effective for reporting periods beginning after December 15, 2018, and management does not believe the changes will have a material effect on the Company’s consolidated financial statements. ASU No. 2017-04: Intangibles – Goodwill and Other (Topic 350) This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and management does not believe the changes will have a material effect on the Company’s accounting and disclosures. ASU No. 2017-03: Accounting Changes and Error Corrections (Topic 250) This amendment includes the text of “SEC Staff Announcement: Disclosure of the Impact That Recently Issued Accounting Standards Will Have on the Financial Statements of a Registrant When Such Standards are Adopted in a Future Period.” This staff announcement applies to ASU No. 2014-09, ASU No. 2016-02 and ASU 2016-03. The Company has enhanced its disclosures regarding the impact that recently issued accounting standards adopted in a future period will have on its accounting and disclosures in this footnote. ASU No. 2016-15: Statement of Cash Flows (Topic 230) This ASU provides specific guidance for eight cash flow classifications. The intention is to ensure that this ASU will eliminate any current or future diversity in classification and reporting. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and management does not believe the changes will have a material effect on the Company’s consolidated financial statements. ASU No. 2016-13: Financial Instruments – Credit Losses (Topic 326) This ASU replaces the current GAAP incurred impairment methodology regarding credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. The amendments in this ASU are effective for reporting periods beginning after December 15, 2019, and management will need further study to determine the impact on the Company’s consolidated financial statements. ASU No. 2016-09: Stock Compensation (Topic 718) This ASU affects all entities that issue share-based payment awards to their employees. The update is intended to simplify the accounting for these transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted the amendments in this ASU, and management has determined that the impact on the Company’s consolidated financial statements is immaterial. ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle is that an entity should recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Management has determined that this update will not have a material impact on the Company’s consolidated financial statements.

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 2—EARNINGS PER SHARE Earnings per share (EPS) have been computed based on the weighted average number of common shares outstanding during the periods presented. There were no anti-dilutive shares in 2017. For the period ended June 30, 2016, share-based awards totaling 33,924 common shares were not considered in computing diluted EPS as they were anti-dilutive. Included in the diluted EPS for June 30, 2017 is the impact of the full conversion of the Company’s depository shares. Based upon the current conversion price of $10.2784, the 1,500,000 outstanding depository shares are convertible into an aggregate of 1,459,376 common shares. The average number of common shares used in the computation of basic and diluted earnings per share were: Three Months Ended Jun., 30 ($ in thousands - except per share data) 2017 2016 Distributed earnings allocated to common shares $ 344 $ 296 Undistributed earnings allocated to common shares 1,727 1,723 Net earnings allocated to common shares 2,071 2,019 Net earnings allocated to participating securities 2 2 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 2,317 $ 2,265 Weighted average shares outstanding for basic earnings per share 4,827 4,893 Dilutive effect of stock compensation 65 45 Dilutive effect of convertible shares 1,459 1,452 Weighted average shares outstanding for diluted earnings per share 6,351 6,390 Basic earnings per common share $ 0.43 $ 0.41 Diluted earnings per common share $ 0.36 $ 0.35 Six Months Ended Jun., 30 ($ in thousands - except per share data) 2017 2016 Distributed earnings allocated to common shares $ 663 $ 566 Undistributed earnings allocated to common shares 3,153 2,861 Net earnings allocated to common shares 3,816 3,427 Net earnings allocated to participating securities 6 5 Dividends on convertible preferred shares 488 488 Net Income allocated to common shares and participating securities $ 4,310 $ 3,920 Weighted average shares outstanding for basic earnings per share 4,839 4,894 Dilutive effect of stock compensation 69 50 Dilutive effect of convertible shares 1,458 1,452 Weighted average shares outstanding for diluted earnings per share 6,366 6,396 Basic earnings per common share $ 0.79 $ 0.70 Diluted earnings per common share $ 0.68 $ 0.61

Securities

Securities	6 Months Ended
Securities	Jun. 30, 2017
Securities [Abstract]
SECURITIES	NOTE 3 - SECURITIES The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at June 30, 2017 and December 31, 2016 were as follows: Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: June 30, 2017 U.S. Treasury and Government agencies $ 17,668 $ 136 $ (47 ) $ 17,757 Mortgage-backed securities 70,762 228 (377 ) 70,613 State and political subdivisions 14,332 593 (18 ) 14,907 Equity securities 70 - - 70 $ 102,832 $ 957 $ (442 ) $ 103,347 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2016: U.S. Treasury and Government agencies $ 13,341 $ 69 $ (52 ) $ 13,358 Mortgage-backed securities 62,035 204 (636 ) 61,603 State and political subdivisions 14,606 530 (39 ) 15,097 Equity securities 70 - - 70 $ 90,052 $ 803 $ (727 ) $ 90,128 The amortized cost and fair value of securities available for sale at June 30, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Amortized Fair ($ in thousands) Cost Value Within one year $ 846 $ 868 Due after one year through five years 12,025 12,158 Due after five years through ten years 11,923 12,126 Due after ten years 7,206 7,512 32,000 32,664 Mortgage-backed securities & equity securities 70,832 70,683 Totals $ 102,832 $ 103,347 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $58.3 million at June 30, 2017 and $44.3 million at December 31, 2016. The fair value of securities delivered for repurchase agreements was $13.9 million at June 30, 2017 and $14.6 million at December 31, 2016. There were no realized gains and losses from sales of available-for-sale securities for the six months ended June 30, 2017. For the six months ended June 30, 2016, there were gross gains of $0.20 million resulting from sales of available-for-sale securities, which was a reclassification from accumulated other comprehensive income (OCI) and was included in the net gain on sale of securities. The related $0.07 million in tax expense was a reclassification from OCI and was included in the income tax expense line item in the income statement. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments was $53.8 million at June 30, 2017, and $52.2 million at December 31, 2016, which was approximately 52 and 58 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016 are as follows: ($ in thousands) Less than 12 Months 12 Months or Longer Total June 30, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 6,997 $ (47 ) $ - $ - $ 6,997 $ (47 ) Mortgage-backed securities 44,877 (357 ) 637 (20 ) 45,514 (377 ) State and Political subdivisions 1,307 (18 ) - - 1,307 (18 ) $ 53,181 $ (422 ) $ 637 $ (20 ) $ 53,818 $ (442 ) ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 6,044 $ (52 ) $ - $ - $ 6,044 $ (52 ) Mortgage-backed securities 44,344 (607 ) 703 (29 ) 45,047 (636 ) State and political subdivisions 1,095 (39 ) - - 1,095 (39 ) $ 51,483 $ (698 ) $ 703 $ (29 ) $ 52,186 $ (727 ) The total potential unrealized loss as of June 30, 2017 in the securities portfolio was $0.44 million, which was down from the $0.73 million unrealized loss at December 31, 2016. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on these securities.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	6 Months Ended
Loans and Allowance for Loan Losses	Jun. 30, 2017
Loans and Allowance for Loan Losses [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	NOTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, all loan classes are placed on non-accrual status not later than 90 days past due, unless the loan is well-secured and in the process of collection. All interest accrued, but not collected, for loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected on the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that State Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration each of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, agricultural, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. When State Bank moves a loan to non-accrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, State Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Categories of loans at June 30, 2017 and December 31, 2016 include: Total Loans Non-Accrual Loans ($ in thousands) Jun. 2017 Dec. 2016 Jun. 2017 Dec. 2016 Commercial & Industrial $ 106,898 $ 108,752 129 190 Commercial RE & Construction 296,116 284,084 1,049 1,194 Agricultural & Farmland 52,107 52,475 3 4 Residential Real Estate 137,214 142,452 1,115 1,162 Consumer & Other 58,833 56,335 154 187 Total Loans $ 651,168 $ 644,098 $ 2,450 $ 2,737 Unearned Income $ 421 $ 335 Total Loans, net of unearned income $ 651,589 $ 644,433 Allowance for loan losses $ (7,825 ) $ (7,725 ) The following tables present the activity in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2017, December 31, 2016 and June 30, 2016. ($’s in thousands) Commercial Commercial RE Agricultural Residential Consumer Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - June 30, 2017 Beginning balance $ 998 $ 3,196 $ 469 $ 2,013 $ 1,003 $ 7,679 Charge Offs (50 ) - - - (19 ) $ (69 ) Recoveries 5 2 1 4 3 15 Provision 42 254 42 (29 ) (109 ) 200 Ending Balance $ 995 $ 3,452 $ 512 $ 1,988 $ 878 $ 7,825 For the Six Months Ended - June 30, 2017 Beginning balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Charge Offs (50 ) - - (22 ) (48 ) $ (120 ) Recoveries 6 2 2 4 6 20 Provision (165 ) 129 163 43 30 200 Ending Balance $ 995 $ 3,452 $ 512 $ 1,988 $ 878 $ 7,825 ($’s in thousands) Commercial Commercial RE Agricultural Residential Consumer Total Loans Receivable at June 30, 2017 Allowance: Ending balance: individually evaluated for impairment $ - $ 96 $ - $ 117 $ 7 $ 220 Ending balance: collectively evaluated for impairment $ 995 $ 3,356 $ 512 $ 1,871 $ 871 $ 7,605 Loans: Ending balance: individually evaluated for impairment $ - $ 1,424 $ - $ 1,675 $ 230 $ 3,329 Ending balance: collectively evaluated for impairment $ 106,898 $ 294,692 $ 52,107 $ 135,539 $ 58,603 $ 647,839 Loans Receivable at December 31, 2016 Allowance: Ending balance: individually evaluated for impairment $ 50 $ 119 $ - $ 124 $ 7 $ 300 Ending balance: collectively evaluated for impairment $ 1,154 $ 3,202 $ 347 $ 1,839 $ 883 $ 7,425 Loans: Ending balance: individually evaluated for impairment $ 50 $ 1,578 $ - $ 1,919 $ 248 $ 3,795 Ending balance: collectively evaluated for impairment $ 108,702 $ 282,506 $ 52,475 $ 140,533 $ 56,087 $ 640,303 Commercial Commercial RE Agricultural Residential Consumer ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - June 30, 2016 Beginning balance $ 925 $ 4,120 $ 188 $ 1,342 $ 630 $ 7,205 Charge Offs - - - - (2 ) $ (2 ) Recoveries 212 6 1 - 28 247 Provision - - - - - - Ending Balance $ 1,137 $ 4,126 $ 189 $ 1,342 $ 656 $ 7,450 Commercial Commercial RE Agricultural Residential Consumer ALLOWANCE FOR LOAN AND LEASE LOSSES For the Six Months Ended - June 30, 2016 Beginning balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Charge Offs (92 ) - - - (4 ) $ (96 ) Recoveries 247 6 1 - 52 306 Provision 68 234 (16 ) 30 (66 ) 250 Ending Balance $ 1,137 $ 4,126 $ 189 $ 1,342 $ 656 $ 7,450 The risk characteristics of each loan portfolio segment are as follows: Commercial and Agricultural Commercial and agricultural loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate including Construction Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus non-owner-occupied loans. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Residential and Consumer Residential and consumer loans consist of two segments – residential mortgage loans and personal loans. Residential mortgage loans are secured by 1-4 family residences and are generally owner-occupied, and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that these loans are of smaller individual amounts and spread over a large number of borrowers. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2017 and December 31, 2016. June 30, 2017 Commercial Commercial RE Agricultural Residential Consumer 1-2 $ 1,341 $ 24 $ 9 $ 232 $ 1 $ 1,607 3 29,351 93,165 9,312 105,513 56,155 293,496 4 75,224 200,066 42,640 28,981 2,388 349,299 Total Pass (1 - 4) 105,916 293,255 51,961 134,726 58,544 644,402 Special Mention (5) 425 1,114 146 835 87 2,607 Substandard (6) 7 683 - 615 82 1,387 Doubtful (7) 550 1,064 - 1,038 120 2,772 Loss (8) - - - - - - Total Loans $ 106,898 $ 296,116 $ 52,107 $ 137,214 $ 58,833 $ 651,168 December 31, 2016 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 1,149 $ 33 $ 9 $ 234 $ 3 $ 1,428 3 28,461 89,406 9,985 113,403 53,386 294,641 4 78,517 188,007 42,481 26,510 2,625 338,140 Total Pass (1 - 4) 108,127 277,446 52,475 140,147 56,014 634,209 Special Mention (5) - 5,030 - 518 123 5,671 Substandard (6) 150 1,291 - 625 61 2,127 Doubtful (7) 475 317 - 1,162 137 2,091 Loss (8) - - - - - - Total Loans $ 108,752 $ 284,084 $ 52,475 $ 142,452 $ 56,335 $ 644,098 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. Credit Risk Profile The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (5): Substandard (6): Doubtful (7): Loss (8): The following tables present the Company’s loan portfolio aging analysis as of June 30, 2017 and December 31, 2016. ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans June 30, 2017 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 551 $ 81 $ 94 $ 726 $ 106,172 $ 106,898 Commercial RE & Construction 19 - 804 823 295,293 296,116 Agricultural & Farmland - - - - 52,107 52,107 Residential Real Estate 106 182 77 365 136,849 137,214 Consumer & Other 208 - 114 322 58,511 58,833 Total Loans $ 884 $ 263 $ 1,089 $ 2,236 $ 648,932 $ 651,168 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2016 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 35 $ 50 $ 104 $ 189 $ 108,563 $ 108,752 Commercial RE & Construction 254 883 59 1,196 282,888 284,084 Agricultural & Farmland - - - - 52,475 52,475 Residential Real Estate 123 201 115 439 142,013 142,452 Consumer & Other 185 45 148 378 55,957 56,335 Total Loans $ 597 $ 1,179 $ 426 $ 2,202 $ 641,896 $ 644,098 All loans past due 90 days are systematically placed on nonaccrual status. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable State Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following tables present impaired loan information as of and for the three and six months ended June 30, 2017 and 2016, and for the twelve months ended December 31, 2016: Six Months Ended June 30, 2017 Recorded Unpaid Principal Related Average Recorded Interest Income ($’s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 735 735 - 758 22 Agricultural & Farmland - - - - - Residential Real Estate 1,114 1,157 - 1,351 35 Consumer & Other 118 118 - 145 5 All Impaired Loans < $100,000 375 375 - 375 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 689 689 96 738 (2 ) Agricultural & Farmland - - - - - Residential Real Estate 561 561 117 634 13 Consumer & Other 112 112 7 118 3 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 1,424 $ 1,424 $ 96 $ 1,496 $ 20 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,675 $ 1,718 $ 117 $ 1,985 $ 48 Consumer & Other $ 230 $ 230 $ 7 $ 263 $ 8 All Impaired Loans < $100,000 $ 375 $ 375 $ - $ 375 $ - Three Months Ended Average Recorded Interest Income June 30, 2017 Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - Commercial RE & Construction 756 9 Agricultural & Farmland - - Residential Real Estate 1,346 16 Consumer & Other 143 2 All Impaired Loans < $100,000 375 - With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction 689 - Agricultural & Farmland - - Residential Real Estate 631 6 Consumer & Other 117 2 Totals: Commercial & Industrial $ - $ - Commercial RE & Construction $ 1,445 $ 9 Agricultural & Farmland $ - $ - Residential Real Estate $ 1,977 $ 22 Consumer & Other $ 260 $ 4 All Impaired Loans < $100,000 $ 375 $ - Twelve Months Ended December 31, 2016 Recorded Unpaid Principal Related Average Recorded Interest Income ($’s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 637 637 - 655 24 Agricultural & Farmland - - - - - Residential Real Estate 1,248 1,290 - 1,470 70 Consumer & Other 129 129 - 151 11 All Impaired Loans < $100,000 452 452 - 452 - With a specific allowance recorded: Commercial & Industrial 50 50 50 50 3 Commercial RE & Construction 941 941 119 1,010 45 Agricultural & Farmland - - - - - Residential Real Estate 671 672 124 751 30 Consumer & Other 119 118 7 123 7 Totals: Commercial & Industrial $ 50 $ 50 $ 50 $ 50 $ 3 Commercial RE & Construction $ 1,578 $ 1,578 $ 119 $ 1,665 $ 69 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,919 $ 1,962 $ 124 $ 2,221 $ 100 Consumer & Other $ 248 $ 247 $ 7 $ 274 $ 18 All Impaired Loans < $100,000 $ 452 $ 452 $ - $ 452 $ - Six Months Ended Three Months Ended June 30, 2016 Average Recorded Interest Income Average Recorded Interest Income ($’s in thousands) Investment Recognized Investment Recognized Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction 766 11 761 6 Agricultural & Farmland - - - - Residential Real Estate 1,199 34 1,195 16 Consumer & Other 96 4 94 2 All Impaired Loans < $100,000 438 - 438 - Commercial & Industrial - - - - Commercial RE & Construction 4,924 - 4,924 - Agricultural & Farmland - - - - Residential Real Estate 962 19 958 10 Consumer & Other 274 9 272 4 Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction $ 5,690 $ 11 $ 5,685 $ 6 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 2,161 $ 53 $ 2,153 $ 26 Consumer & Other $ 370 $ 13 $ 366 $ 6 All Impaired Loans < $100,000 $ 438 $ - $ 438 $ - Impaired loans less than $100,000 are included in groups of homogenous loans. These loans are evaluated based on delinquency status. Interest income recognized on a cash basis does not materially differ from interest income recognized on an accrual basis. Troubled Debt Restructured (TDR) Loans TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs. TDR Concession Types The Company’s standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower’s specific circumstances at a point in time. All loan modifications, including those classified as TDRs, are reviewed and approved by the Senior Lender. The types of concessions provided to borrowers include: ● Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the loan. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis. ● Amortization or maturity date change: A change in the amortization or maturity date beyond what the collateral supports, including a concession that does any of the following: (1) Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (2) Reduces the amount of loan principal to be amortized. This concession also reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (3) Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan. In addition, there may be instances where renewing loans potentially require non-market terms and would then be reclassified as TDRs. ● Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. During the three and six months ended June 30, 2017, the Company had no new TDR activity and none of the TDR’s modified during the past 12 months have subsequently defaulted. For the three months ended June 30, 2016, the Company had no new TDR activity. For the six months ended June 30, 2016, there was one loan modified to a TDR. The loan, which was a consumer product with a principal balance of $222,000, had its term modified.

Derivative Financial Instrument

Derivative Financial Instruments and Repurchase Agreements	6 Months Ended
Derivative Financial Instruments and Repurchase Agreements	Jun. 30, 2017
Derivative Financial Instruments and Repurchase Agreements [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENTS	NOTE 5 – DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENTS Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposures to a wide variety of business and operational risks primarily through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain variable-rate assets. Non-designated Hedges The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2017 and December 31, 2016, the notional amount of customer-facing swaps was approximately $29.1 million and $33.2 million, respectively. The same amounts were offset with third party counterparties, as described above. The Company has minimum collateral posting thresholds with its derivative counterparties. As of June 30, 2017 and December 31, 2016, the Company had posted cash as collateral in the amount of $0.1 million and $0.1 million, respectively. The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the balance sheet, as of June 30, 2017 and December 31, 2016. Asset Derivatives Liability Derivatives June 30, 2017 June 30, 2017 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 525 Other Liabilities $ 525 Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2016 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 623 Other Liabilities $ 623 The Company’s derivative financial instruments had no net effect on the income statements for the three and six months ended June 30, 2017 and 2016. Securities Sold Under Repurchase Agreements State Bank has retail repurchase agreements to facilitate cash management transactions with commercial customers. These obligations are secured by agency and mortgage-backed securities and such collateral is held by the Federal Home Loan Bank. The agreements mature within one month. These repurchase agreements are secured by agency securities and mortgage-backed securities with corresponding liabilities of $4.8 million and of $9.1 million. These securities have various maturity dates beyond 2017.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
Fair Value of Assets and Liabilities	Jun. 30, 2017
Fair Value of Assets and Liabilities [Abstract]
FAIR VALUE OF ASSETS AND LIABILITIES	NOTE 6 – FAIR VALUE OF ASSETS AND LIABILITIES Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying balance sheets, as well as the general classifications of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities The fair values of available-for-sale securities are determined by various valuation methodologies. Level 1 securities include money market mutual funds. Level 1 inputs include quoted prices in an active market. Level 2 securities include U.S. treasury and government agencies, mortgage-backed securities, obligations of political and state subdivisions and equity securities. Level 2 inputs do not include quoted prices for individual securities in active markets; however, they do include inputs that are either directly or indirectly observable for the individual security being valued. Such observable inputs include interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, credit risks and default rates. Also included are inputs derived principally from or corroborated by observable market data by correlation or other means. Interest Rate Contracts The fair values of interest rate contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties. The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2017 and December 31, 2016. Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 17,757 $ - $ 17,757 $ - Mortgage-backed securities 70,613 - 70,613 - State and political subdivisions 14,907 - 14,907 - Equity securities 70 - 70 - Interest rate contracts - assets 525 - 525 - Interest rate contracts - liabilities (525 ) - (525 ) - Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 13,358 $ - $ 13,358 $ - Mortgage-backed securities 61,603 - 61,603 - State and political subdivisions 15,097 - 15,097 - Equity securities 70 - 70 - Interest rate contracts - assets 623 - 623 - Interest rate contracts - liabilities (623 ) - (623 ) - Level 1 – Quoted Prices in Active Markets for Identical Assets Level 2 – Significant Other Observable Inputs Level 3 – Significant Unobservable Inputs The following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Collateral-dependent Impaired Loans, NET of ALLL Loans for which it is probable the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The estimated fair value of collateral-dependent impaired loans is based on the appraised value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. This method requires obtaining an independent appraisal of the collateral, which is reviewed for accuracy and consistency by Credit Administration. These appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by applying a discount factor to the value based on the Company’s loan review policy. All impaired loans held by the Company were collateral dependent at June 30, 2017 and December 31, 2016. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees; miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 592 $ - $ - $ 592 Mortgage Servicing Rights 3,132 - - 3,132 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 786 $ - $ - $ 786 Mortgage Servicing Rights 1,993 - - 1,993 Level 1 - Quoted Prices in Active Markets for Identical Assets Level 2 - Significant Other Observable Inputs Level 3 - Significant Unobservable Inputs Fair Value at Valuation Range (Weighted ($’s in thousands) 6/30/2017 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 592 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 3,132 Discounted cash flow Discount Rate 9.64 % Constant prepayment rate 8.50 % P&I earnings credit 1.22 % T&I earnings credit 1.90 % Inflation for cost of servicing 1.50 % Fair Value at Valuation Range (Weighted ($’s in thousands) 12/31/2016 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 786 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,993 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.61 % P&I earnings credit 0.76 % T&I earnings credit 1.60 % Inflation for cost of servicing 1.50 % There were no changes in the inputs or methodologies used to determine fair value at June 30, 2017 as compared to December 31, 2016. The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value. Cash and Due From Banks, Federal Reserve and Federal Home Loan Bank Stock and Accrued Interest Receivable and Payable The carrying amount approximates the fair value. Loans Held for Sale The fair value of loans held for sale is based upon quoted market prices, where available, or is determined by discounting estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans and adjusted to reflect the inherent credit risk. Loans The estimated fair value for loans receivable is based on estimates of the rate State Bank would charge for similar loans at June 30, 2017 and December 31, 2016, applied for the time period until the loans are assumed to re-price or be paid. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees, miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. Deposits, FHLB advances & Repurchase agreements Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates the fair value. The estimated fair value for fixed-maturity time deposits, as well as borrowings, is based on estimates of the rate State Bank could pay on similar instruments with similar terms and maturities at June 30, 2017 and December 31, 2016. Loan Commitments The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The estimated fair values for other financial instruments and off-balance-sheet loan commitments approximate cost at June 30, 2017 and December 31, 2016 and are not considered significant to this presentation. Trust Preferred Securities The fair value for Trust Preferred Securities is estimated by discounting the cash flows using an appropriate discount rate. The following table presents estimated fair values of the Company’s other financial instruments carried at other than fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments, and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. June 30, 2017 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 21,385 $ 21,385 $ - $ - Loans held for sale 9,437 - 9,711 - Loans, net of allowance for loan losses 643,764 - - 646,073 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Mortgage servicing rights 9,217 - - 10,108 Accrued interest receivable 1,411 - 1,411 - Financial liabilities Deposits $ 707,333 $ 124,213 $ 586,345 $ - FHLB advances 20,500 - 20,515 - Repurchase agreements 11,175 - 11,175 - Trust preferred securities 10,310 - 8,753 - Accrued interest payable 563 - 563 - December 31, 2016 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 17,012 $ 17,012 $ - $ - Loans held for sale 4,434 - 4,503 - Loans, net of allowance for loan losses 636,708 - - 636,909 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Mortgage servicing rights 8,422 - - 9,656 Accrued interest receivable 1,512 - 1,512 - Financial liabilities Deposits $ 673,073 $ 125,189 $ 550,990 $ - FHLB advances 26,500 - 26,477 - Repurchase agreements 10,532 - 10,532 - Trust preferred securities 10,310 - 7,422 - Accrued interest payable 408 - 408 -

Mortgage Servicing Rights

Mortgage Servicing Rights	6 Months Ended
Mortgage Servicing Rights	Jun. 30, 2017
Mortgage Servicing Rights [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 7 – MORTGAGE SERVICING RIGHTS Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $952.4 million at June 30, 2017 and $899.7 million at December 31, 2016. Contractually specified servicing fees of approximately $1.1 million and $1.0 million were included in mortgage loan servicing fees in the income statement for the periods ending June 30, 2017 and 2016, respectively. The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance: ($ in thousands) 2017 2016 Carrying amount, January 1 $ 8,422 $ 7,152 Mortgage servicing rights capitalized during the year 1,320 1,060 Mortgage servicing rights amortization during the year (521 ) (482 ) Net change in valuation allowance (4 ) (1,236 ) Carrying amount, June 30 $ 9,217 $ 6,494 Valuation allowance: January 1 $ 228 $ 296 Increase/(reduction) 4 1,236 June 30 $ 232 $ 1,532

Share Based Compensation

Share Based Compensation	6 Months Ended
Share Based Compensation	Jun. 30, 2017
Share Based Compensation [Abstract]
SHARE BASED COMPENSATION	NOTE 8 – SHARE BASED COMPENSATION In April 2008, the Company’s shareholders approved a share-based incentive compensation plan, the SB Financial Group, Inc. 2008 Stock Incentive Plan (the “2008 Plan”). The 2008 Plan permits the grant or award of incentive stock options, nonqualified stock options; stock appreciation rights (“SARs”) and restricted stock for up to 250,000 Common shares of the Company. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant and those option awards vest based on 5 years of continuous service and have 10-year contractual terms. The fair value of each option award was estimated on the date of grant using the Black-Scholes valuation model. No options were granted in 2017. A summary of incentive option activity under the Company’s 2008 Plan as of June 30, 2017 and changes during the period then ended, is presented below: Shares Weighted-Average Exercise Price Weighted-Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2016 145,894 $ 7.85 Granted - - Exercised (36,517 ) 10.29 Forfeited - - Expired (10,127 ) 11.50 Outstanding, June 30, 2017 99,250 6.97 2.65 $ 691,773 Exercisable, June 30, 2017 99,250 6.97 2.65 $ 691,773 During 2017, the 36,517 option shares exercised had a total intrinsic value of $0.38 million and the cash received from these exercised options was $0.33 million. The tax benefit from these transactions was immaterial. As of June 30, 2017, there was no unrecognized compensation cost related to incentive option share-based compensation arrangements granted under the 2008 Plan. On February 5, 2013, the Company adopted a Long Term Incentive (LTI) Plan. The Plan awards restricted stock in the Company to certain key executives under the 2008 Plan. These restricted stock awards vest over a four-year period and are intended to assist the Company in retention of key executives. During 2016, the Company met certain performance targets and restricted stock awards were approved and issued in February of 2017. The compensation cost charged against income for the Long Term Incentive (LTI) Plan was $0.1 million, with a total income tax benefit recognized in the income statement of $0.03 million. As of June 30, 2017, there was $0.75 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements related to the restricted stock awards under the 2008 Plan which were granted in accordance with the Long Term Incentive (LTI) plan. That cost is expected to be recognized over a weighted-average period of 3.0 years. A summary of restricted stock activity under the Company’s plans as of June 30, 2017 and changes during the period then ended, is presented below: Shares Weighted-Average Value per Share Nonvested, December 31, 2016 35,498 $ 9.44 Granted 24,352 18.84 Vested (13,429 ) 9.04 Forfeited - - Nonvested, June 30, 2017 46,421 $ 14.57 In April, 2017, the Company’s shareholders approved a new equity-based incentive compensation plan, the 2017 Stock Incentive Plan (the “2017). The 2017 Plan permits the company to grant stock options, restricted stock and other equity-based awards and cash-based awards to employees and directors of the Company and its subsidiaries. A total of 500,000 common shares of the Company are available for grants of awards under the 2017 Plan. As of June 30, 2017, no awards had been granted under the 2017 Plan.

General Litigation

General Litigation	6 Months Ended
General Litigation	Jun. 30, 2017
General Litigation [Abstract]
GENERAL LITIGATION	NOTE 9 – GENERAL LITIGATION The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Company is subject to periodic examinations by various regulatory agencies. It is the opinion of management that the disposition or ultimate resolution of such claims, lawsuits and examinations will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Company.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2017
Earnings Per Share [Abstract]
Summary of earnings per share	Three Months Ended Jun., 30 ($ in thousands - except per share data) 2017 2016 Distributed earnings allocated to common shares $ 344 $ 296 Undistributed earnings allocated to common shares 1,727 1,723 Net earnings allocated to common shares 2,071 2,019 Net earnings allocated to participating securities 2 2 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 2,317 $ 2,265 Weighted average shares outstanding for basic earnings per share 4,827 4,893 Dilutive effect of stock compensation 65 45 Dilutive effect of convertible shares 1,459 1,452 Weighted average shares outstanding for diluted earnings per share 6,351 6,390 Basic earnings per common share $ 0.43 $ 0.41 Diluted earnings per common share $ 0.36 $ 0.35 Six Months Ended Jun., 30 ($ in thousands - except per share data) 2017 2016 Distributed earnings allocated to common shares $ 663 $ 566 Undistributed earnings allocated to common shares 3,153 2,861 Net earnings allocated to common shares 3,816 3,427 Net earnings allocated to participating securities 6 5 Dividends on convertible preferred shares 488 488 Net Income allocated to common shares and participating securities $ 4,310 $ 3,920 Weighted average shares outstanding for basic earnings per share 4,839 4,894 Dilutive effect of stock compensation 69 50 Dilutive effect of convertible shares 1,458 1,452 Weighted average shares outstanding for diluted earnings per share 6,366 6,396 Basic earnings per common share $ 0.79 $ 0.70 Diluted earnings per common share $ 0.68 $ 0.61

Securities (Tables)

Securities (Tables)	6 Months Ended
Securities (Tables)	Jun. 30, 2017
Securities [Abstract]
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities	Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: June 30, 2017 U.S. Treasury and Government agencies $ 17,668 $ 136 $ (47 ) $ 17,757 Mortgage-backed securities 70,762 228 (377 ) 70,613 State and political subdivisions 14,332 593 (18 ) 14,907 Equity securities 70 - - 70 $ 102,832 $ 957 $ (442 ) $ 103,347 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2016: U.S. Treasury and Government agencies $ 13,341 $ 69 $ (52 ) $ 13,358 Mortgage-backed securities 62,035 204 (636 ) 61,603 State and political subdivisions 14,606 530 (39 ) 15,097 Equity securities 70 - - 70 $ 90,052 $ 803 $ (727 ) $ 90,128
Summary of amortized cost and fair value of securities available for sale by contractual maturity	Available for Sale Amortized Fair ($ in thousands) Cost Value Within one year $ 846 $ 868 Due after one year through five years 12,025 12,158 Due after five years through ten years 11,923 12,126 Due after ten years 7,206 7,512 32,000 32,664 Mortgage-backed securities & equity securities 70,832 70,683 Totals $ 102,832 $ 103,347
Summary of securities with unrealized losses	($ in thousands) Less than 12 Months 12 Months or Longer Total June 30, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 6,997 $ (47 ) $ - $ - $ 6,997 $ (47 ) Mortgage-backed securities 44,877 (357 ) 637 (20 ) 45,514 (377 ) State and Political subdivisions 1,307 (18 ) - - 1,307 (18 ) $ 53,181 $ (422 ) $ 637 $ (20 ) $ 53,818 $ (442 ) ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 6,044 $ (52 ) $ - $ - $ 6,044 $ (52 ) Mortgage-backed securities 44,344 (607 ) 703 (29 ) 45,047 (636 ) State and political subdivisions 1,095 (39 ) - - 1,095 (39 ) $ 51,483 $ (698 ) $ 703 $ (29 ) $ 52,186 $ (727 )

Loans and Allowance for Loan 19

Loans and Allowance for Loan Losses (Tables)	6 Months Ended
Loans and Allowance for Loan Losses (Tables)	Jun. 30, 2017
Loans and Allowance for Loan Losses [Abstract]
Summary of categories of loans	Total Loans Non-Accrual Loans ($ in thousands) Jun. 2017 Dec. 2016 Jun. 2017 Dec. 2016 Commercial & Industrial $ 106,898 $ 108,752 129 190 Commercial RE & Construction 296,116 284,084 1,049 1,194 Agricultural & Farmland 52,107 52,475 3 4 Residential Real Estate 137,214 142,452 1,115 1,162 Consumer & Other 58,833 56,335 154 187 Total Loans $ 651,168 $ 644,098 $ 2,450 $ 2,737 Unearned Income $ 421 $ 335 Total Loans, net of unearned income $ 651,589 $ 644,433 Allowance for loan losses $ (7,825 ) $ (7,725 )
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method	($’s in thousands) Commercial Commercial RE Agricultural Residential Consumer Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - June 30, 2017 Beginning balance $ 998 $ 3,196 $ 469 $ 2,013 $ 1,003 $ 7,679 Charge Offs (50 ) - - - (19 ) $ (69 ) Recoveries 5 2 1 4 3 15 Provision 42 254 42 (29 ) (109 ) 200 Ending Balance $ 995 $ 3,452 $ 512 $ 1,988 $ 878 $ 7,825 For the Six Months Ended - June 30, 2017 Beginning balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Charge Offs (50 ) - - (22 ) (48 ) $ (120 ) Recoveries 6 2 2 4 6 20 Provision (165 ) 129 163 43 30 200 Ending Balance $ 995 $ 3,452 $ 512 $ 1,988 $ 878 $ 7,825 ($’s in thousands) Commercial Commercial RE Agricultural Residential Consumer Total Loans Receivable at June 30, 2017 Allowance: Ending balance: individually evaluated for impairment $ - $ 96 $ - $ 117 $ 7 $ 220 Ending balance: collectively evaluated for impairment $ 995 $ 3,356 $ 512 $ 1,871 $ 871 $ 7,605 Loans: Ending balance: individually evaluated for impairment $ - $ 1,424 $ - $ 1,675 $ 230 $ 3,329 Ending balance: collectively evaluated for impairment $ 106,898 $ 294,692 $ 52,107 $ 135,539 $ 58,603 $ 647,839 Loans Receivable at December 31, 2016 Allowance: Ending balance: individually evaluated for impairment $ 50 $ 119 $ - $ 124 $ 7 $ 300 Ending balance: collectively evaluated for impairment $ 1,154 $ 3,202 $ 347 $ 1,839 $ 883 $ 7,425 Loans: Ending balance: individually evaluated for impairment $ 50 $ 1,578 $ - $ 1,919 $ 248 $ 3,795 Ending balance: collectively evaluated for impairment $ 108,702 $ 282,506 $ 52,475 $ 140,533 $ 56,087 $ 640,303 Commercial Commercial RE Agricultural Residential Consumer ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - June 30, 2016 Beginning balance $ 925 $ 4,120 $ 188 $ 1,342 $ 630 $ 7,205 Charge Offs - - - - (2 ) $ (2 ) Recoveries 212 6 1 - 28 247 Provision - - - - - - Ending Balance $ 1,137 $ 4,126 $ 189 $ 1,342 $ 656 $ 7,450 Commercial Commercial RE Agricultural Residential Consumer ALLOWANCE FOR LOAN AND LEASE LOSSES For the Six Months Ended - June 30, 2016 Beginning balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Charge Offs (92 ) - - - (4 ) $ (96 ) Recoveries 247 6 1 - 52 306 Provision 68 234 (16 ) 30 (66 ) 250 Ending Balance $ 1,137 $ 4,126 $ 189 $ 1,342 $ 656 $ 7,450
Summary of credit risk profile of the Company's loan portfolio based on rating category	June 30, 2017 Commercial Commercial RE Agricultural Residential Consumer 1-2 $ 1,341 $ 24 $ 9 $ 232 $ 1 $ 1,607 3 29,351 93,165 9,312 105,513 56,155 293,496 4 75,224 200,066 42,640 28,981 2,388 349,299 Total Pass (1 - 4) 105,916 293,255 51,961 134,726 58,544 644,402 Special Mention (5) 425 1,114 146 835 87 2,607 Substandard (6) 7 683 - 615 82 1,387 Doubtful (7) 550 1,064 - 1,038 120 2,772 Loss (8) - - - - - - Total Loans $ 106,898 $ 296,116 $ 52,107 $ 137,214 $ 58,833 $ 651,168 December 31, 2016 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 1,149 $ 33 $ 9 $ 234 $ 3 $ 1,428 3 28,461 89,406 9,985 113,403 53,386 294,641 4 78,517 188,007 42,481 26,510 2,625 338,140 Total Pass (1 - 4) 108,127 277,446 52,475 140,147 56,014 634,209 Special Mention (5) - 5,030 - 518 123 5,671 Substandard (6) 150 1,291 - 625 61 2,127 Doubtful (7) 475 317 - 1,162 137 2,091 Loss (8) - - - - - - Total Loans $ 108,752 $ 284,084 $ 52,475 $ 142,452 $ 56,335 $ 644,098
Summary of loan portfolio aging analysis	($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans June 30, 2017 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 551 $ 81 $ 94 $ 726 $ 106,172 $ 106,898 Commercial RE & Construction 19 - 804 823 295,293 296,116 Agricultural & Farmland - - - - 52,107 52,107 Residential Real Estate 106 182 77 365 136,849 137,214 Consumer & Other 208 - 114 322 58,511 58,833 Total Loans $ 884 $ 263 $ 1,089 $ 2,236 $ 648,932 $ 651,168 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2016 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 35 $ 50 $ 104 $ 189 $ 108,563 $ 108,752 Commercial RE & Construction 254 883 59 1,196 282,888 284,084 Agricultural & Farmland - - - - 52,475 52,475 Residential Real Estate 123 201 115 439 142,013 142,452 Consumer & Other 185 45 148 378 55,957 56,335 Total Loans $ 597 $ 1,179 $ 426 $ 2,202 $ 641,896 $ 644,098
Summary of impaired loan activity	Six Months Ended June 30, 2017 Recorded Unpaid Principal Related Average Recorded Interest Income ($’s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 735 735 - 758 22 Agricultural & Farmland - - - - - Residential Real Estate 1,114 1,157 - 1,351 35 Consumer & Other 118 118 - 145 5 All Impaired Loans < $100,000 375 375 - 375 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 689 689 96 738 (2 ) Agricultural & Farmland - - - - - Residential Real Estate 561 561 117 634 13 Consumer & Other 112 112 7 118 3 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 1,424 $ 1,424 $ 96 $ 1,496 $ 20 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,675 $ 1,718 $ 117 $ 1,985 $ 48 Consumer & Other $ 230 $ 230 $ 7 $ 263 $ 8 All Impaired Loans < $100,000 $ 375 $ 375 $ - $ 375 $ - Three Months Ended Average Recorded Interest Income June 30, 2017 Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - Commercial RE & Construction 756 9 Agricultural & Farmland - - Residential Real Estate 1,346 16 Consumer & Other 143 2 All Impaired Loans < $100,000 375 - With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction 689 - Agricultural & Farmland - - Residential Real Estate 631 6 Consumer & Other 117 2 Totals: Commercial & Industrial $ - $ - Commercial RE & Construction $ 1,445 $ 9 Agricultural & Farmland $ - $ - Residential Real Estate $ 1,977 $ 22 Consumer & Other $ 260 $ 4 All Impaired Loans < $100,000 $ 375 $ - Twelve Months Ended December 31, 2016 Recorded Unpaid Principal Related Average Recorded Interest Income ($’s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 637 637 - 655 24 Agricultural & Farmland - - - - - Residential Real Estate 1,248 1,290 - 1,470 70 Consumer & Other 129 129 - 151 11 All Impaired Loans < $100,000 452 452 - 452 - With a specific allowance recorded: Commercial & Industrial 50 50 50 50 3 Commercial RE & Construction 941 941 119 1,010 45 Agricultural & Farmland - - - - - Residential Real Estate 671 672 124 751 30 Consumer & Other 119 118 7 123 7 Totals: Commercial & Industrial $ 50 $ 50 $ 50 $ 50 $ 3 Commercial RE & Construction $ 1,578 $ 1,578 $ 119 $ 1,665 $ 69 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,919 $ 1,962 $ 124 $ 2,221 $ 100 Consumer & Other $ 248 $ 247 $ 7 $ 274 $ 18 All Impaired Loans < $100,000 $ 452 $ 452 $ - $ 452 $ - Six Months Ended Three Months Ended June 30, 2016 Average Recorded Interest Income Average Recorded Interest Income ($’s in thousands) Investment Recognized Investment Recognized Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction 766 11 761 6 Agricultural & Farmland - - - - Residential Real Estate 1,199 34 1,195 16 Consumer & Other 96 4 94 2 All Impaired Loans < $100,000 438 - 438 - Commercial & Industrial - - - - Commercial RE & Construction 4,924 - 4,924 - Agricultural & Farmland - - - - Residential Real Estate 962 19 958 10 Consumer & Other 274 9 272 4 Commercial & Industrial $ - $ - $ - $ - Commercial RE & Construction $ 5,690 $ 11 $ 5,685 $ 6 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 2,161 $ 53 $ 2,153 $ 26 Consumer & Other $ 370 $ 13 $ 366 $ 6 All Impaired Loans < $100,000 $ 438 $ - $ 438 $ -

Derivative Financial Instrume20

Derivative Financial Instruments and Repurchase Agreements (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Financial Instruments and Repurchase Agreements [Abstract]
Schedule of fair values of derivative instruments on the balance sheet	Asset Derivatives Liability Derivatives June 30, 2017 June 30, 2017 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 525 Other Liabilities $ 525 Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2016 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 623 Other Liabilities $ 623

Fair Value of Assets and Liab21

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
Fair Value of Assets and Liabilities (Tables)	Jun. 30, 2017
Fair Value of Assets and Liabilities [Abstract]
Summary of fair value measurements of assets measured at fair value on a recurring basis	($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 17,757 $ - $ 17,757 $ - Mortgage-backed securities 70,613 - 70,613 - State and political subdivisions 14,907 - 14,907 - Equity securities 70 - 70 - Interest rate contracts - assets 525 - 525 - Interest rate contracts - liabilities (525 ) - (525 ) - ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 13,358 $ - $ 13,358 $ - Mortgage-backed securities 61,603 - 61,603 - State and political subdivisions 15,097 - 15,097 - Equity securities 70 - 70 - Interest rate contracts - assets 623 - 623 - Interest rate contracts - liabilities (623 ) - (623 ) -
Summary of fair value measurements of assets measured at fair value on a nonrecurring basis	($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 592 $ - $ - $ 592 Mortgage Servicing Rights 3,132 - - 3,132 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 786 $ - $ - $ 786 Mortgage Servicing Rights 1,993 - - 1,993
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring	Fair Value at Valuation Range (Weighted ($’s in thousands) 6/30/2017 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 592 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 3,132 Discounted cash flow Discount Rate 9.64 % Constant prepayment rate 8.50 % P&I earnings credit 1.22 % T&I earnings credit 1.90 % Inflation for cost of servicing 1.50 % Fair Value at Valuation Range (Weighted ($’s in thousands) 12/31/2016 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 786 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,993 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.61 % P&I earnings credit 0.76 % T&I earnings credit 1.60 % Inflation for cost of servicing 1.50 %
Summary of estimated fair values of company's financial instruments	June 30, 2017 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 21,385 $ 21,385 $ - $ - Loans held for sale 9,437 - 9,711 - Loans, net of allowance for loan losses 643,764 - - 646,073 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Mortgage servicing rights 9,217 - - 10,108 Accrued interest receivable 1,411 - 1,411 - Financial liabilities Deposits $ 707,333 $ 124,213 $ 586,345 $ - FHLB advances 20,500 - 20,515 - Repurchase agreements 11,175 - 11,175 - Trust preferred securities 10,310 - 8,753 - Accrued interest payable 563 - 563 - December 31, 2016 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 17,012 $ 17,012 $ - $ - Loans held for sale 4,434 - 4,503 - Loans, net of allowance for loan losses 636,708 - - 636,909 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Mortgage servicing rights 8,422 - - 9,656 Accrued interest receivable 1,512 - 1,512 - Financial liabilities Deposits $ 673,073 $ 125,189 $ 550,990 $ - FHLB advances 26,500 - 26,477 - Repurchase agreements 10,532 - 10,532 - Trust preferred securities 10,310 - 7,422 - Accrued interest payable 408 - 408 -

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	6 Months Ended
Mortgage Servicing Rights (Tables)	Jun. 30, 2017
Mortgage Servicing Rights [Abstract]
Summary of mortgage servicing rights capitalized and related amortization	($ in thousands) 2017 2016 Carrying amount, January 1 $ 8,422 $ 7,152 Mortgage servicing rights capitalized during the year 1,320 1,060 Mortgage servicing rights amortization during the year (521 ) (482 ) Net change in valuation allowance (4 ) (1,236 ) Carrying amount, June 30 $ 9,217 $ 6,494 Valuation allowance: January 1 $ 228 $ 296 Increase/(reduction) 4 1,236 June 30 $ 232 $ 1,532

Share Based Compensation (Table

Share Based Compensation (Tables)	6 Months Ended
Share Based Compensation (Tables)	Jun. 30, 2017
Share Based Compensation [Abstract]
Schedule of option activity under the Company's plans	Shares Weighted-Average Exercise Price Weighted-Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2016 145,894 $ 7.85 Granted - - Exercised (36,517 ) 10.29 Forfeited - - Expired (10,127 ) 11.50 Outstanding, June 30, 2017 99,250 6.97 2.65 $ 691,773 Exercisable, June 30, 2017 99,250 6.97 2.65 $ 691,773
Schedule of restricted stock activity under the Company's plans	Shares Weighted-Average Value per Share Nonvested, December 31, 2016 35,498 $ 9.44 Granted 24,352 18.84 Vested (13,429 ) 9.04 Forfeited - - Nonvested, June 30, 2017 46,421 $ 14.57

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Distributed earnings allocated to common shares	$ 344	$ 296	$ 663	$ 566
Undistributed earnings allocated to common shares	1,727	1,723	3,153	2,861
Net earnings allocated to common shares	2,071	2,019	3,816	3,427
Net earnings allocated to participating securities	2	2	6	5
Dividends on convertible preferred shares	244	244	488	488
Net Income allocated to common shares and participating securities	$ 2,317	$ 2,265	$ 4,310	$ 3,920
Weighted average shares outstanding for basic earnings per share	4,827	4,893	4,839	4,894
Dilutive effect of stock compensation	65	45	69	50
Dilutive effect of convertible shares	1,459	1,452	1,458	1,452
Weighted average shares outstanding for diluted earnings per share	6,351	6,390	6,366	6,396
Basic earnings per common share	$ 0.43	$ 0.41	$ 0.79	$ 0.70
Diluted earnings per common share	$ 0.37	$ 0.35	$ 0.68	$ 0.61

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual) - $ / shares	3 Months Ended	6 Months Ended
Earnings Per Share (Details Textual) - $ / shares	Jun. 30, 2016	Jun. 30, 2017
Earnings Per Share (Textual)
Common shares excluded from computation of diluted EPS	33,924
Conversion current price		$ 10.2784
Conversion of depository shares		1,500,000
Conversion of common stock, shares		1,459,376

Securities (Details)

Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Summary of amortized cost and approximate fair values of securities
Amortized Cost	$ 102,832	$ 90,052
Gross Unrealized Gains	957	803
Gross Unrealized Losses	(442)	(727)
Fair Value	103,347	90,128
U.S. Treasury and Government agencies [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost	17,668	13,341
Gross Unrealized Gains	136	69
Gross Unrealized Losses	(47)	(52)
Fair Value	17,757	13,358
Mortgage-backed securities [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost	70,762	62,035
Gross Unrealized Gains	228	204
Gross Unrealized Losses	(377)	(636)
Fair Value	70,613	61,603
State and political subdivisions [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost	14,332	14,606
Gross Unrealized Gains	593	530
Gross Unrealized Losses	(18)	(39)
Fair Value	14,607	15,097
Equity securities [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost	70	70
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	$ 70	$ 70

Securities (Details 1)

Securities (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Summary of amortized cost and fair value of securities available for sale by contractual maturity
Available for Sale Amortized Cost, Within one year	$ 846
Available for Sale Amortized Cost, Due after one year through five years	12,025
Available for Sale Amortized Cost, Due after five years through ten years	11,923
Available for Sale Amortized Cost, Due after ten years	7,206
Available for Sale Amortized Cost	32,000
Available for Sale, Amortized Cost, Mortgage-backed securities & equity securities	70,832
Available for Sale, Amortized Cost, Totals	102,832	$ 90,052
Available for Sale Fair Value, Within one year	868
Available for Sale Fair Value, Due after one year through five years	12,158
Available for Sale Fair Value, Due after five years through ten years	12,126
Available for Sale Fair Value, Due after ten years	7,512
Available for Sale Fair Value	32,664
Available for Sale, Fair Value, Mortgage-backed securities & equity securities	70,683
Available for Sale, Fair Value, Totals	$ 103,347	$ 90,128

Securities (Details 2)

Securities (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Securities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	$ 53,181	$ 51,483
Less than 12 Months, Unrealized Losses	(422)	(698)
12 Months or Longer, Fair Value	637	703
12 Months or Longer, Unrealized Losses	(20)	(29)
Total, Fair Value	53,818	52,186
Total, Unrealized Losses	(442)	(727)
U.S. Treasury and Government Agencies [Member]
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	6,997	6,044
Less than 12 Months, Unrealized Losses	(47)	(52)
12 Months or Longer, Fair Value
12 Months or Longer, Unrealized Losses
Total, Fair Value	6,997	6,044
Total, Unrealized Losses	(47)	(52)
Mortgage-backed securities [Member]
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	44,877	44,344
Less than 12 Months, Unrealized Losses	(357)	(607)
12 Months or Longer, Fair Value	637	703
12 Months or Longer, Unrealized Losses	(20)	(29)
Total, Fair Value	45,514	45,047
Total, Unrealized Losses	(377)	(636)
State and political subdivisions [Member]
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	1,307	1,095
Less than 12 Months, Unrealized Losses	(18)	(39)
12 Months or Longer, Fair Value
12 Months or Longer, Unrealized Losses
Total, Fair Value	1,307	1,095
Total, Unrealized Losses	$ (18)	$ (39)

Securities (Details Textual)

Securities (Details Textual) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
Securities (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Securities (Textual)
Fair value of securities pledged as collateral		$ 58,300	$ 44,300
Securities delivered for repurchase agreements		13,900	14,600
Gross gains realized from sales of available-for-sale securities	$ 200
Tax expense for net security gains		70
Total fair value of investments		$ 53,818	$ 52,186
Fair value as a percentage of available-for-sale investment portfolio		52.00%	58.00%
Unrealized loss on the securities portfolio		$ 440	$ 730

Loans and Allowance for Loan 30

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Summary of categories of loans
Total Loans	$ 651,168	$ 644,098
Non-Accrual Loans	2,450	2,737
Unearned Income	421	335
Total Loans, net of unearned income	651,589	644,433
Allowance for loan losses	(7,825)	(7,725)
Commercial & Industrial [Member]
Summary of categories of loans
Total Loans	106,898	108,752
Non-Accrual Loans	129	190
Commercial RE & Construction [Member]
Summary of categories of loans
Total Loans	296,116	284,084
Non-Accrual Loans	1,049	1,194
Agricultural & Farmland [Member]
Summary of categories of loans
Total Loans	52,107	52,475
Non-Accrual Loans	3	4
Residential Real Estate [Member]
Summary of categories of loans
Total Loans	137,214	142,452
Non-Accrual Loans	1,115	1,162
Consumer & Other [Member]
Summary of categories of loans
Total Loans	58,833	56,335
Non-Accrual Loans	$ 154	$ 187

Loans and Allowance for Loan 31

Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	$ 7,679	$ 7,205	$ 7,725	$ 6,990
Charge Offs	(69)	(2)	(120)	(96)
Recoveries	15	247	20	306
Provision	200		200	250
Ending Balance	7,825	7,450	7,825	7,450
Allowance: Ending balance: individually evaluated for impairment	220		220		$ 300
Allowance: Ending balance: collectively evaluated for impairment	7,605		7,605		7,425
Loans: Ending balance: individually evaluated for impairment	3,329		3,329		3,795
Loans: Ending balance: collectively evaluated for impairment	647,839		647,839		640,303
Commercial & Industrial [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	998	925	1,204	914
Charge Offs	(50)		(50)	(92)
Recoveries	5	212	6	247
Provision	42		(165)	68
Ending Balance	995	1,137	995	1,137
Allowance: Ending balance: individually evaluated for impairment					50
Allowance: Ending balance: collectively evaluated for impairment	995		995		1,154
Loans: Ending balance: individually evaluated for impairment					50
Loans: Ending balance: collectively evaluated for impairment	106,898		106,898		108,702
Commercial RE & Construction [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	3,196	4,120	3,321	3,886
Charge Offs
Recoveries	2	6	2	6
Provision	254		129	234
Ending Balance	3,452	4,126	3,452	4,126
Allowance: Ending balance: individually evaluated for impairment	96		96		119
Allowance: Ending balance: collectively evaluated for impairment	3,356		3,356		3,202
Loans: Ending balance: individually evaluated for impairment	1,424		1,424		1,578
Loans: Ending balance: collectively evaluated for impairment	294,692		294,692		282,506
Agricultural & Farmland [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	469	188	347	204
Charge Offs
Recoveries	1	1	2	1
Provision	42		163	(16)
Ending Balance	512	189	512	189
Allowance: Ending balance: individually evaluated for impairment
Allowance: Ending balance: collectively evaluated for impairment	512		512		347
Loans: Ending balance: individually evaluated for impairment
Loans: Ending balance: collectively evaluated for impairment	52,107		52,107		52,475
Residential Real Estate [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	2,013	1,342	1,963	1,312
Charge Offs			(22)
Recoveries	4		4
Provision	(29)		43	30
Ending Balance	1,988	1,342	1,988	1,342
Allowance: Ending balance: individually evaluated for impairment	117		117		124
Allowance: Ending balance: collectively evaluated for impairment	1,871		1,871		1,839
Loans: Ending balance: individually evaluated for impairment	1,675		1,675		1,919
Loans: Ending balance: collectively evaluated for impairment	135,539		135,539		140,533
Consumer & Other [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	1,003	630	890	674
Charge Offs	(19)	(2)	(48)	(4)
Recoveries	3	28	6	52
Provision	(109)		30	(66)
Ending Balance	878	$ 656	878	$ 656
Allowance: Ending balance: individually evaluated for impairment	7		7		7
Allowance: Ending balance: collectively evaluated for impairment	871		871		883
Loans: Ending balance: individually evaluated for impairment	230		230		248
Loans: Ending balance: collectively evaluated for impairment	$ 58,603		$ 58,603		$ 56,087

Loans and Allowance for Loan 32

Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	$ 651,168	$ 644,098
Loan Grade 1-2 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1,607	1,428
Loan Grade 3 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	293,496	294,641
Loan Grade 4 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	349,299	338,140
Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	644,402	634,209
Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	2,607	5,671
Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1,387	2,127
Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	2,772	2,091
Loss [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Commercial & Industrial [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	106,898	108,752
Commercial & Industrial [Member] \| Loan Grade 1-2 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1,341	1,149
Commercial & Industrial [Member] \| Loan Grade 3 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	29,351	28,461
Commercial & Industrial [Member] \| Loan Grade 4 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	75,224	78,517
Commercial & Industrial [Member] \| Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	105,916	108,127
Commercial & Industrial [Member] \| Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	425
Commercial & Industrial [Member] \| Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	7	150
Commercial & Industrial [Member] \| Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	550	475
Commercial & Industrial [Member] \| Loss [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Commercial RE & Construction [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	296,116	284,084
Commercial RE & Construction [Member] \| Loan Grade 1-2 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	24	33
Commercial RE & Construction [Member] \| Loan Grade 3 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	93,165	89,406
Commercial RE & Construction [Member] \| Loan Grade 4 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	200,066	188,007
Commercial RE & Construction [Member] \| Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	293,255	277,446
Commercial RE & Construction [Member] \| Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1,114	5,030
Commercial RE & Construction [Member] \| Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	683	1,291
Commercial RE & Construction [Member] \| Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1,064	317
Commercial RE & Construction [Member] \| Loss [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Agricultural & Farmland [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	52,107	52,475
Agricultural & Farmland [Member] \| Loan Grade 1-2 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	9	9
Agricultural & Farmland [Member] \| Loan Grade 3 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	9,312	9,985
Agricultural & Farmland [Member] \| Loan Grade 4 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	42,640	42,481
Agricultural & Farmland [Member] \| Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	51,961	52,475
Agricultural & Farmland [Member] \| Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	146
Agricultural & Farmland [Member] \| Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Agricultural & Farmland [Member] \| Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Agricultural & Farmland [Member] \| Loss [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Residential Real Estate [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	137,214	142,452
Residential Real Estate [Member] \| Loan Grade 1-2 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	232	234
Residential Real Estate [Member] \| Loan Grade 3 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	105,513	113,403
Residential Real Estate [Member] \| Loan Grade 4 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	28,981	26,510
Residential Real Estate [Member] \| Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	134,726	140,147
Residential Real Estate [Member] \| Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	835	518
Residential Real Estate [Member] \| Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	615	625
Residential Real Estate [Member] \| Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1,038	1,162
Residential Real Estate [Member] \| Loss [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Consumer & Other [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	58,833	56,335
Consumer & Other [Member] \| Loan Grade 1-2 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1	3
Consumer & Other [Member] \| Loan Grade 3 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	56,155	53,386
Consumer & Other [Member] \| Loan Grade 4 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	2,388	2,625
Consumer & Other [Member] \| Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	58,544	56,014
Consumer & Other [Member] \| Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	87	123
Consumer & Other [Member] \| Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	82	61
Consumer & Other [Member] \| Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	120	137
Consumer & Other [Member] \| Loss [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans

Loans and Allowance for Loan 33

Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Summary of loan portfolio aging analysis
Total Past Due	$ 2,236	$ 2,202
Current	648,932	641,896
Total Loans Receivable	651,168	644,098
30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	884	597
60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	263	1,179
Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	1,089	426
Commercial & Industrial [Member]
Summary of loan portfolio aging analysis
Total Past Due	726	189
Current	106,172	108,563
Total Loans Receivable	106,898	108,752
Commercial & Industrial [Member] \| 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	551	35
Commercial & Industrial [Member] \| 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	81	50
Commercial & Industrial [Member] \| Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	94	104
Commercial RE & Construction [Member]
Summary of loan portfolio aging analysis
Total Past Due	823	1,196
Current	295,293	282,888
Total Loans Receivable	296,116	284,084
Commercial RE & Construction [Member] \| 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	19	254
Commercial RE & Construction [Member] \| 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due		883
Commercial RE & Construction [Member] \| Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	804	59
Agricultural & Farmland [Member]
Summary of loan portfolio aging analysis
Total Past Due
Current	52,107	52,475
Total Loans Receivable	52,107	52,475
Agricultural & Farmland [Member] \| 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due
Agricultural & Farmland [Member] \| 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due
Agricultural & Farmland [Member] \| Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due
Residential Real Estate [Member]
Summary of loan portfolio aging analysis
Total Past Due	365	439
Current	136,849	142,013
Total Loans Receivable	137,214	142,452
Residential Real Estate [Member] \| 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	106	123
Residential Real Estate [Member] \| 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	182	201
Residential Real Estate [Member] \| Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	77	115
Consumer & Other [Member]
Summary of loan portfolio aging analysis
Total Past Due	322	378
Current	58,511	55,957
Total Loans Receivable	58,833	56,335
Consumer & Other [Member] \| 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	208	185
Consumer & Other [Member] \| 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due		45
Consumer & Other [Member] \| Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	$ 114	$ 148

Loans and Allowance for Loan 34

Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Commercial & Industrial [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment
With no related allowance recorded, Unpaid Principal Balance
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment
With no related allowance recorded, Interest Income Recognized
With a specific allowance recorded, Recorded Investment					50
With a specific allowance recorded, Unpaid Principal Balance					50
With a specific allowance recorded, Related Allowance					50
With a specific allowance recorded, Average Recorded Investment					50
With a specific allowance recorded, Interest Income Recognized					3
Total Recorded Investment					50
Total Unpaid Principal Balance					50
Total Related Allowance					50
Total Average Recorded Investment					50
Total Interest Income Recognized					3
Commercial RE & Construction [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment	735		735		637
With no related allowance recorded, Unpaid Principal Balance	735		735		637
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	756	761	758	766	655
With no related allowance recorded, Interest Income Recognized	9	6	22	11	24
With a specific allowance recorded, Recorded Investment	689		689		941
With a specific allowance recorded, Unpaid Principal Balance	689		689		941
With a specific allowance recorded, Related Allowance	96		96		119
With a specific allowance recorded, Average Recorded Investment	689	4,924	738	4,924	1,010
With a specific allowance recorded, Interest Income Recognized			(2)		45
Total Recorded Investment	1,424		1,424		1,578
Total Unpaid Principal Balance	1,424		1,424		1,578
Total Related Allowance	96		96		119
Total Average Recorded Investment	1,445	5,685	1,496	5,690	1,665
Total Interest Income Recognized	9	6	20	11	69
Agricultural & Farmland [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment
With no related allowance recorded, Unpaid Principal Balance
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment
With no related allowance recorded, Interest Income Recognized
With a specific allowance recorded, Recorded Investment
With a specific allowance recorded, Unpaid Principal Balance
With a specific allowance recorded, Related Allowance
With a specific allowance recorded, Average Recorded Investment
With a specific allowance recorded, Interest Income Recognized
Total Recorded Investment
Total Unpaid Principal Balance
Total Related Allowance
Total Average Recorded Investment
Total Interest Income Recognized
Residential Real Estate [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment	1,114		1,114		1,248
With no related allowance recorded, Unpaid Principal Balance	1,157		1,157		1,290
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	1,346	1,195	1,351	1,199	1,470
With no related allowance recorded, Interest Income Recognized	16	16	35	34	70
With a specific allowance recorded, Recorded Investment	561		561		671
With a specific allowance recorded, Unpaid Principal Balance	561		561		672
With a specific allowance recorded, Related Allowance	117		117		124
With a specific allowance recorded, Average Recorded Investment	631	958	634	962	751
With a specific allowance recorded, Interest Income Recognized	6	10	13	19	30
Total Recorded Investment	1,675		1,675		1,919
Total Unpaid Principal Balance	1,718		1,718		1,962
Total Related Allowance	117		117		124
Total Average Recorded Investment	1,977	2,153	1,985	2,161	2,221
Total Interest Income Recognized	22	26	48	53	100
Consumer & Other [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment	118		118		129
With no related allowance recorded, Unpaid Principal Balance	118		118		129
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	143	94	145	96	151
With no related allowance recorded, Interest Income Recognized	2	2	5	4	11
With a specific allowance recorded, Recorded Investment	112		112		119
With a specific allowance recorded, Unpaid Principal Balance	112		112		118
With a specific allowance recorded, Related Allowance	7		7		7
With a specific allowance recorded, Average Recorded Investment	117	272	118	274	123
With a specific allowance recorded, Interest Income Recognized	2	4	3	9	7
Total Recorded Investment	230		230		248
Total Unpaid Principal Balance	230		230		247
Total Related Allowance	7		7		7
Total Average Recorded Investment	260	366	263	370	274
Total Interest Income Recognized	4	6	8	13	18
All Impaired Loans less than $100,000 [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment	375		375		452
With no related allowance recorded, Unpaid Principal Balance	375		375		452
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	375	438	375	438	452
With no related allowance recorded, Interest Income Recognized
Total Recorded Investment	375		375		452
Total Unpaid Principal Balance	375		375		452
Total Related Allowance
Total Average Recorded Investment	375	438	375	438	452
Total Interest Income Recognized

Loans and Allowance for Loan 35

Loans and Allowance for Loan Losses (Details Textual)	6 Months Ended
Loans and Allowance for Loan Losses (Details Textual)	Jun. 30, 2017USD ($)
Loans and Allowance for Loan Losses (Textual)
Principal amount outstanding of loans held-in-portfolio	$ 100,000
Impaired loans which included in groups of homogenous loans	Impaired loans less than $100,000 are included in groups of homogenous loans.
Consumer product principal balance	$ 222,000

Derivative Financial Instrume36

Derivative Financial Instruments and Repurchase Agreements (Details) - Derivatives not designated as hedging instruments [Member] - Interest rate contracts [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other Assets [Member]
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet
Asset Derivatives	$ 525	$ 623
Other Liabilities [Member]
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet
Liability Derivatives	$ 525	$ 623

Derivative Financial Instrume37

Derivative Financial Instruments and Repurchase Agreements (Details Textual) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivative Financial Instruments (Textual)
Notional amount of customer-facing swaps	$ 29.1	$ 33.2
Cash as collateral	0.1	$ 0.1
Repurchase agreements securities	4.8
Mortgage-backed securities	$ 9.1
Securities maturity, description	These securities have various maturity dates beyond 2017.

Fair Value of Assets and Liab38

Fair Value of Assets and Liabilities (Details) - Available-For-Sale Securities [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
U.S. Treasury and Government Agencies [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	$ 17,757	$ 13,358
Mortgage-backed securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	70,613	61,603
State and political subdivisions [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	14,907	15,097
Equity securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	70	70
Interest rate contracts - assets [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	525	623
Interest rate contracts - liabilities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	(525)	(623)
Level 1 [Member] \| U.S. Treasury and Government Agencies [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 1 [Member] \| Mortgage-backed securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 1 [Member] \| State and political subdivisions [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 1 [Member] \| Equity securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 1 [Member] \| Interest rate contracts - assets [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 1 [Member] \| Interest rate contracts - liabilities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 2 [Member] \| U.S. Treasury and Government Agencies [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	17,757	13,358
Level 2 [Member] \| Mortgage-backed securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	70,613	61,603
Level 2 [Member] \| State and political subdivisions [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	14,907	15,097
Level 2 [Member] \| Equity securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	70	70
Level 2 [Member] \| Interest rate contracts - assets [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	525	623
Level 2 [Member] \| Interest rate contracts - liabilities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	(525)	(623)
Level 3 [Member] \| U.S. Treasury and Government Agencies [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 3 [Member] \| Mortgage-backed securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 3 [Member] \| State and political subdivisions [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 3 [Member] \| Equity securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 3 [Member] \| Interest rate contracts - assets [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring
Level 3 [Member] \| Interest rate contracts - liabilities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring

Fair Value of Assets and Liab39

Fair Value of Assets and Liabilities (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Impaired Loans [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring	$ 592	$ 786
Impaired Loans [Member] \| Level 1 [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring
Impaired Loans [Member] \| Level 2 [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring
Impaired Loans [Member] \| Level 3 [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring	592	786
Mortgage Servicing Rights [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring	3,132	1,993
Mortgage Servicing Rights [Member] \| Level 1 [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring
Mortgage Servicing Rights [Member] \| Level 2 [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring
Mortgage Servicing Rights [Member] \| Level 3 [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring	$ 3,132	$ 1,993

Fair Value of Assets and Liab40

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Collateral-dependent impaired loans [Member] \| Comparability adjustments (%) [Member]
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 592	$ 786
Fair Value Measurements, Valuation Technique	Market comparable properties	Market comparable properties
Fair Value Measurements, Unobservable Inputs	Comparability adjustments (%)	Comparability adjustments (%)
Mortgage servicing rights [Member] \| Discount Rate [Member]
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 3,132	$ 1,993
Fair Value Measurements, Valuation Technique	Discounted cash flow	Discounted cash flow
Fair Value Measurements, Unobservable Inputs	Discount Rate	Discount Rate
Fair Value Measurements, Range (Weighted Average)	9.64%	9.65%
Mortgage servicing rights [Member] \| Constant prepayment rate [Member]
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements
Fair Value Measurements, Unobservable Inputs	Constant prepayment rate	Constant prepayment rate
Fair Value Measurements, Range (Weighted Average)	8.50%	7.61%
Mortgage servicing rights [Member] \| P&I earnings credit [Member]
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements
Fair Value Measurements, Unobservable Inputs	P&I earnings credit	P&I earnings credit
Fair Value Measurements, Range (Weighted Average)	1.22%	0.76%
Mortgage servicing rights [Member] \| T&I earnings credit [Member]
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements
Fair Value Measurements, Unobservable Inputs	T&I earnings credit	T&I earnings credit
Fair Value Measurements, Range (Weighted Average)	1.90%	1.60%
Mortgage servicing rights [Member] \| Inflation for cost of servicing [Member]
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements
Fair Value Measurements, Unobservable Inputs	Inflation for cost of servicing	Inflation for cost of servicing
Fair Value Measurements, Range (Weighted Average)	1.50%	1.50%

Fair Value of Assets and Liab41

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Financial assets
Cash and cash equivalents	$ 21,385	$ 17,012	$ 29,945	$ 20,459
Loans held for sale	9,437	4,434
Loans, net of allowance for loan losses	643,764	636,708
Federal Reserve and FHLB Bank stock	3,748	3,748
Mortgage servicing rights	9,217	8,422
Accrued interest receivable	1,411	1,512
Financial liabilities
Deposits	707,333	673,073
FHLB advances	20,500	26,500
Repurchase agreements	11,175	10,532
Trust preferred securities	10,310	10,310
Accrued interest payable	563	408
Level 1 [Member]
Financial assets
Cash and cash equivalents	21,385	17,012
Loans held for sale
Loans, net of allowance for loan losses
Federal Reserve and FHLB Bank stock
Mortgage servicing rights
Accrued interest receivable
Financial liabilities
Deposits	124,213	125,189
FHLB advances
Repurchase agreements
Trust preferred securities
Accrued interest payable
Level 2 [Member]
Financial assets
Cash and cash equivalents
Loans held for sale	9,711	4,503
Loans, net of allowance for loan losses
Federal Reserve and FHLB Bank stock	3,748	3,748
Mortgage servicing rights
Accrued interest receivable	1,411	1,512
Financial liabilities
Deposits	586,345	550,990
FHLB advances	20,515	26,477
Repurchase agreements	11,175	10,532
Trust preferred securities	8,753	7,422
Accrued interest payable	563	408
Level 3 [Member]
Financial assets
Cash and cash equivalents
Loans held for sale
Loans, net of allowance for loan losses	646,073	636,909
Federal Reserve and FHLB Bank stock
Mortgage servicing rights	10,108	9,656
Accrued interest receivable
Financial liabilities
Deposits
FHLB advances
Repurchase agreements
Trust preferred securities
Accrued interest payable

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Mortgage servicing rights capitalized and related amortization
Carrying amount, January 1	$ 8,422	$ 7,152
Mortgage servicing rights capitalized during the year	1,320	1,060
Mortgage servicing rights amortization during the year	(521)	(482)
Net change in valuation allowance	(4)	(1,236)
Carrying amount, June 30	9,217	6,494
Valuation allowance:
January 1	228	296
Increase/(reduction)	4	1,236
June 30	$ 232	$ 1,532

Mortgage Servicing Rights (De43

Mortgage Servicing Rights (Details Textual) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Mortgage Servicing Rights (Textual)
Unpaid principal balance of mortgage loans		$ 952.4	$ 899.7
Contractually specified servicing fees	$ 1	$ 1.1

Share Based Compensation (Detai

Share Based Compensation (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Share Based Compensation [Abstract]
Shares Outstanding, December 31, 2016 \| shares	145,894
Shares Granted \| shares
Shares Exercised \| shares	(36,517)
Shares Forfeited \| shares
Shares Expired \| shares	(10,127)
Shares Outstanding, June 30, 2017 \| shares	99,250
Shares Exercisable, June 30, 2017 \| shares	99,250
Weighted-Average Exercise Price Outstanding, December 31, 2016 \| $ / shares	$ 7.85
Weighted-Average Exercise Price Granted \| $ / shares
Weighted-Average Exercise Price Exercised \| $ / shares	10.29
Weighted-Average Exercise Price Forfeited \| $ / shares
Weighted-Average Exercise Price Expired \| $ / shares	11.50
Weighted-Average Exercise Price Outstanding, June 30, 2017 \| $ / shares	6.97
Weighted-Average Exercise Price Exercisable, June 30, 2017 \| $ / shares	$ 6.97
Weighted-Average Remaining Term Outstanding, June 30, 2017	2 years 7 months 24 days
Weighted-Average Remaining Term Exercisable, June 30, 2017	2 years 7 months 24 days
Aggregate Intrinsic Value, Outstanding, June 30, 2017 \| $	$ 691,773
Aggregate Intrinsic Value, Exercisable, June 30, 2017 \| $	$ 691,773

Share Based Compensation (Det45

Share Based Compensation (Details 1) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested, December 31, 2016 \| shares	35,498
Nonvested Shares Granted \| shares	24,352
Nonvested Shares, Vested \| shares	(13,429)
Nonvested Shares, Forfeited \| shares
Nonvested Shares, March 31, 2017 \| shares	46,421
Nonvested Weighted-Average Value per Share, December 31, 2016 \| $ / shares	$ 9.44
Nonvested Weighted-Average Value per Share, Granted \| $ / shares	18.84
Nonvested Weighted-Average Value per Share, Vested \| $ / shares	9.04
Nonvested Weighted-Average Value per Share, Forfeited \| $ / shares
Nonvested Weighted-Average Value per Share, March 31, 2017 \| $ / shares	$ 14.57

Share Based Compensation (Det46

Share Based Compensation (Details Textual) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Apr. 30, 2017	Jun. 30, 2017
Share Based Compensation (Textual)
Shares available for grants of awards
Total intrinsic value		$ 380
Option exercised shares		36,517
Cash received from exercised options		$ 330
2008 Stock Incentive Plan [Member]
Share Based Compensation (Textual)
SAR and common restricted stock, shares		250,000
Option awards vesting period		5 years
Option awards contractual terms		10 years
2017 Stock Incentive Plan [Member]
Share Based Compensation (Textual)
Shares available for grants of awards	500,000
Restricted Stock [Member]
Share Based Compensation (Textual)
Option awards vesting period		4 years
Compensation cost charged against income		$ 100
Total income tax benefit recognized in income statement for share-based compensation arrangements		$ 30
Weighted-average period term		3 years
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan		$ 750