SB Financial (SBFG) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 09, 2018
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	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		6,485,876

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash & due from banks	$ 48,329	$ 26,616
Securities available for sale, at fair value	91,987	82,790
Other securities - FRB and FHLB Stock	3,748	3,748
Loans held for sale	8,893	3,940
Loans, net of unearned income	707,207	696,615
Allowance for loan losses	(8,219)	(7,930)
Premises and equipment, net	21,776	21,277
Cash surrender value of life insurance	16,567	16,479
Goodwill & other intangibles	16,409	16,411
Foreclosed assets held for sale, net	70	26
Mortgage servicing rights	10,196	9,907
Accrued interest receivable	1,925	1,825
Other assets	6,753	4,923
Total assets	925,641	876,627
Deposits
Non interest bearing demand	132,919	135,592
Interest bearing demand	137,893	131,079
Savings	116,820	103,267
Money market	143,679	141,844
Time deposits	217,484	217,818
Total deposits	748,795	729,600
Repurchase agreements	14,505	15,082
Advances from Federal Home Loan Bank	18,500	18,500
Trust preferred securities	10,310	10,310
Accrued interest payable	633	592
Other liabilities	9,999	8,543
Total liabilities	802,742	782,627
Commitments & Contingent Liabilities
Stockholders' Equity
Preferred stock, Series A	13,983	13,983
Common stock	40,481	12,569
Additional paid-in capital	15,189	15,405
Retained earnings	57,162	55,439
Accumulated other comprehensive income	(941)	(141)
Treasury stock, at cost	(2,975)	(3,255)
Total stockholders' equity	122,899	94,000
Total liabilities and stockholders' equity	$ 925,641	$ 876,627

Condensed Consolidated Income S

Condensed Consolidated Income Statement (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Loans
Taxable	$ 8,140	$ 6,800
Tax exempt	21	20
Securities
Taxable	573	461
Tax exempt	117	133
Total interest income	8,851	7,414
Interest expense
Deposits	975	748
Repurchase agreements & other	10	4
Federal Home Loan Bank advances	79	86
Trust preferred securities	87	70
Total interest expense	1,151	908
Net interest income	7,700	6,506
Provision for loan losses	300
Net interest income after provision for loan losses	7,400	6,506
Noninterest income
Wealth management fees	739	667
Customer service fees	644	640
Gain on sale of mortgage loans & OMSR's	1,100	1,250
Mortgage loan servicing fees, net	471	383
Gain on sale of non-mortgage loans	660	430
Data service fees		193
Gain/(loss) on sale/disposal of assets	(39)	2
Other income	668	237
Total noninterest income	4,243	3,802
Noninterest expense
Salaries and employee benefits	4,939	4,386
Net occupancy expense	649	560
Equipment expense	829	641
Data processing fees	438	370
Professional fees	419	363
Marketing expense	221	195
Telephone and communications	122	116
Postage and delivery expense	74	174
State, local and other taxes	186	167
Employee expense	166	145
Other expenses	584	265
Total noninterest expense	8,627	7,382
Income before income tax expense	3,016	2,926
Income tax expense	563	933
Net income	2,453	1,993
Preferred Stock Dividends	244	244
Net income available to common shareholders	$ 2,209	$ 1,749
Common share data:
Basic earnings per common share	$ 0.4	$ 0.36
Diluted earnings per common share	$ 0.35	$ 0.31
Average common shares outstanding (in thousands):
Basic:	5,519	4,855
Diluted:	7,055	6,387

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statements of Comprehensive Income [Abstract]
Net income	$ 2,453	$ 1,993
Available-for-sale investment securities:
Unrealized holding gain (loss) arising in the period	(1,013)	129
Related tax (expense) benefit	213	(44)
Net effect on other comprehensive income	(800)	85
Total comprehensive income	$ 1,653	$ 2,078

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, 2016	$ 86,548	$ 13,983	$ 12,569	$ 15,362	$ 46,688	$ 51	$ (2,105)
Net income	1,993				1,993
Other comprehensive income (loss)	85					85
Dividends on common stock	(319)				(319)
Dividends on preferred, $0.1625 per share	(244)				(244)
Restricted stock vesting				(163)			163
Stock options exercised	329			(66)			395
Stock buyback	(455)						(455)
Share based compensation expense	91			91
Ending Balance at Mar. 31, 2017	88,028	13,983	12,569	15,224	48,118	136	(2,002)
Beginning Balance at Dec. 31, 2017	94,000	13,983	12,569	15,405	55,439	(141)	(3,255)
Net income	2,453				2,453
Common stock issuance (1,666,666 shares)	27,912		27,912
Other comprehensive income (loss)	(800)					(800)
Dividends on common stock	(486)				(486)
Dividends on preferred, $0.1625 per share	(244)				(244)
Restricted stock vesting				(257)			257
Stock options exercised	40			(41)			81
Stock buyback	(58)						(58)
Share based compensation expense	82			82
Ending Balance at Mar. 31, 2018	$ 122,899	$ 13,983	$ 40,481	$ 15,189	$ 57,162	$ (941)	$ (2,975)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Stockholders' Equity [Abstract]
Common stock issuance, shares	1,666,666
Dividend common stock, per share amount	$ 0.075	$ 0.065
Dividend preferred stock, per share amount	$ 0.1625	$ 0.1625

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Activities
Net Income	$ 2,453	$ 1,993
Items providing/(using) cash
Depreciation and amortization	409	367
Provision for loan losses	300
Expense of share-based compensation plan	82	91
Amortization of premiums and discounts on securities	86	169
Amortization of intangible assets	2	3
Amortization of originated mortgage servicing rights	246	218
Recovery of mortgage servicing rights	(92)	(35)
Proceeds from sale of loans held for sale	43,412	46,352
Originations of loans held for sale	(41,720)	(46,364)
Gain from sale of loans	(1,760)	(1,680)
Changes in
Interest receivable	(100)	50
Other assets	(1,438)	181
Interest payable and other liabilities	1,472	(743)
Net cash provided by operating activities	3,352	602
Investing Activities
Purchases of available-for-sale securities	(13,149)	(23,307)
Proceeds from maturities of available-for-sale securities	2,853	5,459
Net change in loans	(16,874)	17,664
Purchase of premises and equipment and software	(406)	(1,147)
Proceeds from sale of equipment	133
Proceeds from sale of foreclosed assets	22	40
Net cash used in investing activities	(27,421)	(1,291)
Financing Activities
Net increase in demand deposits, money market, interest checking and savings accounts	19,530	25,511
Net increase in certificates of deposit	(335)	14,331
Net increase in securities sold under agreements to repurchase	(577)	1,264
Repayment of Federal Home Loan Bank advances		(11,000)
Share repurchase	(58)	(455)
Exercise of Stock Options	40	329
Issuance of Common Stock	27,912
Dividends on Common Stock	(486)	(319)
Dividends on Preferred Stock	(244)	(244)
Net cash provided by financing activities	45,782	29,417
Increase in Cash and Cash Equivalents	21,713	28,728
Cash and Cash Equivalents, Beginning of Year	26,616	17,012
Cash and Cash Equivalents, End of Period	48,329	45,740
Supplemental Cash Flows Information
Interest paid	1,110	866
Income taxes paid	220	203
Transfer of loans to foreclosed assets	$ 70

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
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”). Effective January 1, 2018 the Company completed the sale of the customer contracts and certain other assets of RDSI’s remaining processing business operated through its Diverse Computer Marketers (DCM) division. As part of the transaction, the Company entered into a 180 day transition agreement, which will allow the buyer to effectively convert the DCM clients to an alternative processing platform. The transaction had a minimal positive impact to the Company’s financial statements in the first quarter of 2018. 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 three months ended March 31, 2018, are not necessarily indicative of results for the complete year. The condensed consolidated balance sheet of the Company as of December 31, 2017 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, 2017. The following paragraphs summarize the impact of new accounting pronouncements: Accounting Standards Update (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. 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 the Company for reporting periods beginning after December 15, 2017 and did not have a significant impact on the 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. The Company implemented a process to track required data by utilizing accounting software in preparation for compliance. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an incurred loss model, which encompasses allowances for current known and inherent losses within the portfolio, to an expected loss model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. We anticipate being fully prepared for implementation by December 15, 2019. ASU No. 2016-02: Leases (Topic 842) This ASU is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU are effective for reporting periods beginning after December 15, 2018. The Company has little leasing activity and management has determined that the impact on the Company’s consolidated financial statements will be immaterial. ASU No. 2016-01: Recognition and Measurement of Financial Assets and Liabilities (Topic 825) This ASU has a number of provisions including the requirements that public business entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, a separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e. securities or loans receivables), and eliminating the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendment is effective for the Company in the first quarter of 2018 and did not have a significant impact on the consolidated financial statements or on fair value and other required disclosures. ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) This ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of the amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. ASU 2014-09 became effective on January 1, 2018 and had no material effect on how we recognize revenue or to our consolidated financial statements and disclosures. Interest Income The largest source of revenue for the Company is interest income which is primarily recognized on an accrual basis according to nondiscretionary formulas in written contracts, such as loan and lease agreements or investment securities contracts. Noninterest Income –

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
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. Included in the diluted EPS for March 31, 2018 are the impact of the full conversion of the Company’s depositary shares. Based upon the current conversion price of $10.2374, the 1,500,000 outstanding depositary shares are convertible into an aggregate of 1,465,222 common shares. There were no anti-dilutive shares in 2018 or 2017. The average number of common shares used in the computation of basic and diluted earnings per share were: Three Months Ended ($ in thousands - except per share data) 2018 2017 Distributed earnings allocated to common shares $ 486 $ 319 Undistributed earnings allocated to common shares 1,720 1,427 Net earnings allocated to common shares 2,206 1,746 Net earnings allocated to participating securities 3 3 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 2,453 $ 1,993 Weighted average shares outstanding for basic earnings per share 5,519 4,855 Dilutive effect of stock compensation 72 74 Dilutive effect of convertible shares 1,464 1,458 Weighted average shares outstanding for diluted earnings per share 7,055 6,387 Basic earnings per common share $ 0.40 $ 0.36 Diluted earnings per common share $ 0.35 $ 0.31

Securities

Securities	3 Months Ended
	Mar. 31, 2018
Securities [Abstract]
SECURITIES	NOTE 3 – SECURITIES The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at March 31, 2018 and December 31, 2017 were as follows: Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: March 31, 2018 U.S. Treasury and Government agencies $ 14,299 $ 42 $ (175 ) $ 14,166 Mortgage-backed securities 66,068 57 (1,394 ) 64,731 State and political subdivisions 12,812 309 (31 ) 13,090 $ 93,179 $ 408 $ (1,600 ) $ 91,987 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2017: U.S. Treasury and Government agencies $ 12,715 $ 62 $ (69 ) $ 12,708 Mortgage-backed securities 57,355 97 (690 ) 56,762 State and political subdivisions 12,829 439 (18 ) 13,250 Equity securities 70 - - 70 $ 82,969 $ 598 $ (777 ) $ 82,790 The amortized cost and fair value of securities available for sale at March 31, 2018, 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 $ 1,560 $ 1,578 Due after one year through five years 9,194 9,214 Due after five years through ten years 10,990 10,990 Due after ten years 5,367 5,474 27,111 27,256 Mortgage-backed securities 66,068 64,731 Totals $ 93,179 $ 91,987 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $45.7 million at March 31, 2018 and $38.9 million at December 31, 2017. The fair value of securities delivered for repurchase agreements was $19.2 million at March 31, 2018 and $19.1 million at December 31, 2017. There were no realized gains and losses from sales of available-for-sale securities for the three months ended March 31, 2018 or March 31, 2017. 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 $72.8 million at March 31, 2018, and $59.3 million at December 31, 2017, which was approximately 79 and 72 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2018 and December 31, 2017 are as follows: Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 7,424 $ (121 ) $ 2,546 $ (54 ) $ 9,970 $ (175 ) Mortgage-backed securities 47,336 (894 ) 13,953 (500 ) 61,289 (1,394 ) State and Political subdivisions 1,206 (12 ) 320 (19 ) 1,526 (31 ) $ 55,966 $ (1,027 ) $ 16,819 $ (573 ) $ 72,785 $ (1,600 ) Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 5,675 $ (27 ) $ 2,559 $ (42 ) $ 8,234 $ (69 ) Mortgage-backed securities 35,205 (319 ) 14,673 (371 ) 49,878 (690 ) State and political subdivisions 905 (4 ) 326 (14 ) 1,231 (18 ) $ 41,785 $ (350 ) $ 17,558 $ (427 ) $ 59,343 $ (777 ) The total potential unrealized loss as of March 31, 2018 in the securities portfolio was $1.60 million, compared to a $0.78 million unrealized loss at December 31, 2017. 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	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 include: Total Loans Non-Accrual Loans ($ in thousands) Mar. 2018 Dec. 2017 Mar. 2018 Dec. 2017 Commercial & Industrial $ 107,078 $ 101,554 35 121 Commercial RE & Construction 338,586 332,154 487 1,322 Agricultural & Farmland 50,266 51,947 - - Residential Real Estate 151,820 150,854 1,714 1,123 Consumer & Other 58,956 59,619 85 138 Total Loans $ 706,706 $ 696,128 $ 2,321 $ 2,704 Net deferred costs $ 501 $ 487 Total Loans, net deferred costs $ 707,207 $ 696,615 Allowance for loan losses $ (8,219 ) $ (7,930 ) 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 March 31, 2018, December 31, 2017 and March 31, 2017. Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - March 31, 2018 Beginning balance $ 823 $ 3,779 $ 505 $ 2,129 $ 694 $ 7,930 Charge Offs - (19 ) - - (1 ) $ (20 ) Recoveries - 3 - 1 5 9 Provision 155 (90 ) 12 229 (6 ) 300 Ending Balance $ 978 $ 3,673 $ 517 $ 2,359 $ 692 $ 8,219 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at March 31, 2018 Allowance: Ending balance: individually evaluated for impairment $ - $ - $ - $ 170 $ 4 $ 174 Ending balance: collectively evaluated for impairment $ 978 $ 3,673 $ 517 $ 2,189 $ 688 $ 8,045 Loans: Ending balance: individually evaluated for impairment $ - $ 548 $ - $ 2,367 $ 190 $ 3,105 Ending balance: collectively evaluated for impairment $ 107,078 $ 338,038 $ 50,266 $ 149,453 $ 58,766 $ 703,601 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2017 Allowance: Ending balance: individually evaluated for impairment $ - $ 146 $ - $ 178 $ 5 $ 329 Ending balance: collectively evaluated for impairment $ 823 $ 3,633 $ 505 $ 1,951 $ 689 $ 7,601 Loans: Ending balance: individually evaluated for impairment $ - $ 1,385 $ - $ 1,830 $ 197 $ 3,412 Ending balance: collectively evaluated for impairment $ 101,554 $ 330,769 $ 51,947 $ 149,024 $ 59,422 $ 692,716 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - March 31, 2017 Beginning balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Charge Offs - - - (22 ) (29 ) $ (51 ) Recoveries 1 - 1 - 3 5 Provision (207 ) (125 ) 121 72 139 - Ending Balance $ 998 $ 3,196 $ 469 $ 2,013 $ 1,003 $ 7,679 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 March 31, 2018 and December 31, 2017. March 31, 2018 Commercial Commercial RE Agricultural Residential Consumer & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 19 $ 9 $ - $ 828 $ 1 $ 857 3 18,237 92,736 7,741 112,491 56,656 287,861 4 84,804 243,601 42,064 36,370 2,065 408,904 Total Pass (1 - 4) 103,060 336,346 49,805 149,689 58,722 697,622 Special Mention (5) 3,395 1,474 461 - 61 5,391 Substandard (6) 88 438 - 2,094 173 2,793 Doubtful (7) 535 328 - 37 - 900 Loss (8) - - - - - - Total Loans $ 107,078 $ 338,586 $ 50,266 $ 151,820 $ 58,956 $ 706,706 December 31, 2017 Commercial Commercial RE Agricultural Residential Consumer & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 96 $ 13 $ - $ 832 $ 1 $ 942 3 19,883 93,222 8,080 114,130 57,204 292,519 4 80,448 236,217 43,735 34,271 2,151 396,822 Total Pass (1 - 4) 100,427 329,452 51,815 149,233 59,356 690,283 Special Mention (5) 512 1,100 132 - 66 1,810 Substandard (6) 7 580 - 1,583 197 2,367 Doubtful (7) 608 1,022 - 38 - 1,668 Loss (8) - - - - - - Total Loans $ 101,554 $ 332,154 $ 51,947 $ 150,854 $ 59,619 $ 696,128 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 $100 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (5): Substandard (6): Doubtful (7): Loss (8): The following tables present the Company’s loan portfolio aging analysis as of March 31, 2018 and December 31, 2017. ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans March 31, 2018 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 209 $ 20 $ 3 $ 232 $ 106,846 $ 107,078 Commercial RE & Construction 47 - 255 302 338,284 338,586 Agricultural & Farmland - - - - 50,266 50,266 Residential Real Estate 375 10 975 1,360 150,460 151,820 Consumer & Other 196 126 60 382 58,574 58,956 Total Loans $ 827 $ 156 $ 1,293 $ 2,276 $ 704,430 $ 706,706 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2017 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 85 $ - $ 88 $ 173 $ 101,381 $ 101,554 Commercial RE & Construction 110 - 1,086 1,196 330,958 332,154 Agricultural & Farmland - - - - 51,947 51,947 Residential Real Estate 484 379 433 1,296 149,558 150,854 Consumer & Other 182 21 103 306 59,313 59,619 Total Loans $ 861 $ 400 $ 1,710 $ 2,971 $ 693,157 $ 696,128 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 months ended March 31, 2018 and 2017, and for the twelve months ended December 31, 2017: Three Months Ended March 31, 2018 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 548 575 - 725 6 Agricultural & Farmland - - - - - Residential Real Estate 1,301 1,344 - 2,005 20 Consumer & Other 105 104 - 118 2 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction - - - - - Agricultural & Farmland - - - - - Residential Real Estate 1,066 1,085 170 613 7 Consumer & Other 85 85 4 86 1 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 548 $ 575 $ - $ 725 $ 6 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 2,367 $ 2,429 $ 170 $ 2,618 $ 27 Consumer & Other $ 190 $ 189 $ 4 $ 204 $ 3 Twelve Months Ended December 31, 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 696 722 - 756 34 Agricultural & Farmland - - - - - Residential Real Estate 752 795 - 1,460 67 Consumer & Other 110 110 - 128 9 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 689 689 146 713 - Agricultural & Farmland - - - - - Residential Real Estate 1,078 1,097 178 628 25 Consumer & Other 87 87 5 91 5 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 1,385 $ 1,411 $ 146 $ 1,469 $ 34 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,830 $ 1,892 $ 178 $ 2,088 $ 92 Consumer & Other $ 197 $ 197 $ 5 $ 219 $ 14 Three Months Ended Average Recorded Interest Income March 31, 2017 Investment Recognized ($'s in thousands) With no related allowance recorded: Commercial & Industrial $ - $ - Commercial RE & Construction 644 12 Agricultural & Farmland - - Residential Real Estate 1,355 18 Consumer & Other 139 2 With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction 788 (2 ) Agricultural & Farmland - - Residential Real Estate 637 7 Consumer & Other 167 1 Totals: Commercial & Industrial $ - $ - Commercial RE & Construction $ 1,432 $ 10 Agricultural & Farmland $ - $ - Residential Real Estate $ 1,992 $ 25 Consumer & Other $ 306 $ 3 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. 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 first three months of 2018 and 2017, there was no TDR activity. TDRs modified in the past twelve-month period that have subsequently defaulted ($ in thousands) Number of Contracts Recorded Balance Residential Real Estate 1 $ 61 Commercial Real Estate 1 159 Total Modifications 2 $ 220

Mortgage Servicing Rights

Mortgage Servicing Rights	3 Months Ended
	Mar. 31, 2018
Mortgage Servicing Rights [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 5 – 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 $1.0 billion at March 31, 2018 and $994.9 million at December 31, 2017. Contractually specified servicing fees of approximately $0.6 million and $0.6 million were included in mortgage loan servicing fees in the income statement for the periods ending March 31, 2018 and 2017, respectively. The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance: ($ in thousands) 2018 2017 Carrying amount, January 1 $ 9,907 $ 8,422 Mortgage servicing rights capitalized during the year 502 488 Mortgage servicing rights amortization during the year (246 ) (218 ) Net change in valuation allowance 92 35 Carrying amount, March 31 $ 10,255 $ 8,727 Valuation allowance: January 1 $ 151 $ 228 Increase/(reduction) (92 ) (35 ) March 31 $ 59 $ 193

Derivative Financial Instrument

Derivative Financial Instruments and Repurchase Agreements	3 Months Ended
	Mar. 31, 2018
Derivative Financial Instruments and Repurchase Agreements [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENTS	NOTE 6 – 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 March 31, 2018 and December 31, 2017, the notional amount of customer-facing swaps was approximately $49.0 million and $39.3 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 March 31, 2018 and December 31, 2017, the Company had no posted cash as collateral with correspondents. At March 31, 2018, we had cash from correspondents as collateral of $0.9 million. The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Balance Sheet, as of March 31, 2018 and December 31, 2017. Asset Derivatives Liability Derivatives March 31, 2018 March 31, 2018 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 1,144 Other Liabilities $ 1,144 Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2017 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 698 Other Liabilities $ 698 The Company’s derivative financial instruments had no net effect on the condensed consolidated Income Statements for the three months ended March 31, 2018 and 2017. 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 $5.0 million and of $14.2 million. These securities have various maturity dates beyond 2020.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2018
Fair Value of Assets and Liabilities [Abstract]
FAIR VALUE OF ASSETS AND LIABILITIES	NOTE 7 – 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 March 31, 2018 and December 31, 2017. ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 14,166 $ - $ 14,166 $ - Mortgage-backed securities 64,731 - 64,731 - State and political subdivisions 13,090 - 13,090 - Interest rate contracts - assets 1,144 - 1,144 - Interest rate contracts - liabilities (1,144 ) - (1,144 ) - 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 $ 12,708 $ - $ 12,708 $ - Mortgage-backed securities 56,762 - 56,762 - State and political subdivisions 13,250 - 13,250 - Equity securities 70 - 70 - Interest rate contracts - assets 698 - 698 - Interest rate contracts - liabilities (698 ) - (698 ) - 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 March 31, 2018 and December 31, 2017. 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. ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 237 $ - $ - $ 237 Mortgage Servicing Rights 754 - - 754 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 982 $ - $ - $ 982 Mortgage Servicing Rights 1,490 - - 1,490 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 ($'s in thousands) 2018 Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 237 Market comparable properties Comparability adjustments (%) 20 % Mortgage servicing rights 754 Discounted cash flow Discount Rate 10.15 % Constant prepayment rate 6.39 % P&I earnings credit 1.88 % T&I earnings credit 2.62 % Inflation for cost of servicing 1.50 % Fair Value at Valuation ($'s in thousands) 2017 Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 982 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,490 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.51 % P&I earnings credit 1.56 % T&I earnings credit 2.13 % Inflation for cost of servicing 1.50 % Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. There were no changes in the inputs or methodologies used to determine fair value at March 31, 2018 as compared to December 31, 2017. 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 of loans as of March 31, 2018 follows the guidance in ASU 2016-01, which prescribes an “exit price” approach in estimating and disclosing fair value of financial instruments. The fair value calculation at that date discounted estimated future cash flows using rates that incorporated discounts for credit, liquidity, and marketability factors. The fair value estimate shown as of December 31, 2017 used an “entry price” approach. The fair value calculation for that date discounted estimated future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Consequently, the fair value disclosures for March 31, 2018 and December 31, 2017 are not directly comparable. 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, 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 March 31, 2018 and December 31, 2017. 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 March 31, 2018 and December 31, 2017 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. March 31, Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) ($ in thousands) Financial assets Cash and cash equivalents $ 48,329 $ 48,329 $ - $ - Loans held for sale 8,893 - 9,058 - Loans, net of allowance for loan losses 698,988 - - 684,348 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Accrued interest receivable 1,925 - 1,925 - Financial liabilities Deposits $ 748,795 $ 531,391 $ 215,158 $ - Repurchase agreements 14,505 - 14,505 - FHLB advances 18,500 - 18,319 - Trust preferred securities 10,310 - 9,446 - Accrued interest payable 633 - 633 - December 31, 2017 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) ($ in thousands) Financial assets Cash and due from banks $ 26,616 $ 26,616 $ - $ - Loans held for sale 3,940 - 4,041 - Loans, net of allowance for loan losses 688,685 - - 686,940 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Accrued interest receivable 1,825 - 1,825 - Financial liabilities Deposits $ 729,600 $ 511,782 $ 220,823 $ - Repurchase agreements 15,082 - 15,082 - FHLB advances 18,500 - 18,385 - Trust preferred securities 10,310 - 9,673 - Accrued interest payable 592 - 592 -

Share Based Compensation

Share Based Compensation	3 Months Ended
	Mar. 31, 2018
Share Based Compensation [Abstract]
SHARE BASED COMPENSATION	NOTE 8 – SHARE BASED COMPENSATION In April 2017, the shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc. 2017 Stock Incentive Plan (the "2017 Plan"), which replaced the Company’s 2008 Stock Incentive Plan. This plan permits the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights ("SAR’s"), restricted stock, and restricted stock units (“RSU’s”) for up to 500,000 Common Shares of the Company. The 2008 Plan, which was approved by the shareholders in April 2008, 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. The 2008 and 2017 Plans are intended to advance the interests of the Company and its shareholders by offering employees, directors and advisory board members of the Company and its subsidiaries an opportunity to acquire or increase their ownership interest in the Company through grants of equity-based awards. The Plans permit equity-based awards to be used to attract, motivate, reward and retain highly competent individuals upon whose judgment, initiative, leadership and efforts are key to the success of the Company by encouraging those individuals to become shareholders 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 the first three months of 2018. A summary of incentive option activity under the Company’s plans as of March 31, 2018 and changes during the quarter then ended, is presented below: ($ in thousands - except per share data) Shares Weighted-Average Exercise Price Weighted-Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2017 92,500 $ 6.97 Granted - - Exercised (5,750 ) 6.98 Forfeited - - Expired - - Outstanding, March 31, 2018 86,750 $ 6.97 1.87 $ 1,001 Exercisable, March 31, 2018 86,750 $ 6.97 1.87 $ 1,001 During 2018, the 5,750 option shares exercised had a total intrinsic value of $0.06 million and the cash received from these exercised options was $0.04 million. The tax benefit from these transactions was immaterial. As of March 31, 2018, 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 2017, the Company met certain performance targets and restricted stock awards were approved and issued in February of 2018. The compensation cost charged against income for the Long Term Incentive (LTI) Plan was $0.08 million, with a total income tax benefit recognized in the income statement of $0.03 million. As of March 31, 2018, there was $0.70 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements related to the restricted stock awards under the 2008 and 2017 Plans 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 1.9 years. A summary of restricted stock activity under the Company’s plans as of March 31, 2018 and changes during the quarter then ended, is presented below: Shares Weighted-Average Value per Share Nonvested, December 31, 2017 52,258 $ 14.91 Granted 15,268 17.60 Vested (21,632 ) 13.95 Forfeited - - Nonvested, March 31, 2018 45,894 $ 16.26 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 March 31, 2018, 17,268 shares had been granted under the 2017 Plan.

Equity Capital

Equity Capital	3 Months Ended
	Mar. 31, 2018
Equity Capital [Abstract]
EQUITY CAPITAL	NOTE 9 – EQUITY CAPITAL On February 9, 2018, the Company closed a common share capital raise, pursuant to which the Company issued and sold an aggregate of 1,666,666 common shares in a public offering registered with the Securities and Exchange Commission at a price of $18.00 per share, resulting in gross proceeds of $30.0 million. After fees and transaction expenses, the Company realized net proceeds of $27.9 million. The Company intends to use the net proceeds from this offering for general corporate purposes, which may include (a) capital contributions to its bank subsidiary to increase regulatory capital and/or (b) investments at the holding company level.

General Litigation

General Litigation	3 Months Ended
	Mar. 31, 2018
General Litigation [Abstract]
GENERAL LITIGATION	NOTE 10 – 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)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Summary of earnings per share	Three Months Ended ($ in thousands - except per share data) 2018 2017 Distributed earnings allocated to common shares $ 486 $ 319 Undistributed earnings allocated to common shares 1,720 1,427 Net earnings allocated to common shares 2,206 1,746 Net earnings allocated to participating securities 3 3 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 2,453 $ 1,993 Weighted average shares outstanding for basic earnings per share 5,519 4,855 Dilutive effect of stock compensation 72 74 Dilutive effect of convertible shares 1,464 1,458 Weighted average shares outstanding for diluted earnings per share 7,055 6,387 Basic earnings per common share $ 0.40 $ 0.36 Diluted earnings per common share $ 0.35 $ 0.31

Securities (Tables)

Securities (Tables)	3 Months Ended
	Mar. 31, 2018
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: March 31, 2018 U.S. Treasury and Government agencies $ 14,299 $ 42 $ (175 ) $ 14,166 Mortgage-backed securities 66,068 57 (1,394 ) 64,731 State and political subdivisions 12,812 309 (31 ) 13,090 $ 93,179 $ 408 $ (1,600 ) $ 91,987 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2017: U.S. Treasury and Government agencies $ 12,715 $ 62 $ (69 ) $ 12,708 Mortgage-backed securities 57,355 97 (690 ) 56,762 State and political subdivisions 12,829 439 (18 ) 13,250 Equity securities 70 - - 70 $ 82,969 $ 598 $ (777 ) $ 82,790
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 $ 1,560 $ 1,578 Due after one year through five years 9,194 9,214 Due after five years through ten years 10,990 10,990 Due after ten years 5,367 5,474 27,111 27,256 Mortgage-backed securities 66,068 64,731 Totals $ 93,179 $ 91,987
Summary of securities with unrealized losses	Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 7,424 $ (121 ) $ 2,546 $ (54 ) $ 9,970 $ (175 ) Mortgage-backed securities 47,336 (894 ) 13,953 (500 ) 61,289 (1,394 ) State and Political subdivisions 1,206 (12 ) 320 (19 ) 1,526 (31 ) $ 55,966 $ (1,027 ) $ 16,819 $ (573 ) $ 72,785 $ (1,600 ) Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 5,675 $ (27 ) $ 2,559 $ (42 ) $ 8,234 $ (69 ) Mortgage-backed securities 35,205 (319 ) 14,673 (371 ) 49,878 (690 ) State and political subdivisions 905 (4 ) 326 (14 ) 1,231 (18 ) $ 41,785 $ (350 ) $ 17,558 $ (427 ) $ 59,343 $ (777 )

Loans and Allowance for Loan 20

Loans and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2018
Loans and Allowance for Loan Losses [Abstract]
Summary of categories of loans	Total Loans Non-Accrual Loans ($ in thousands) Mar. 2018 Dec. 2017 Mar. 2018 Dec. 2017 Commercial & Industrial $ 107,078 $ 101,554 35 121 Commercial RE & Construction 338,586 332,154 487 1,322 Agricultural & Farmland 50,266 51,947 - - Residential Real Estate 151,820 150,854 1,714 1,123 Consumer & Other 58,956 59,619 85 138 Total Loans $ 706,706 $ 696,128 $ 2,321 $ 2,704 Net deferred costs $ 501 $ 487 Total Loans, net deferred costs $ 707,207 $ 696,615 Allowance for loan losses $ (8,219 ) $ (7,930 )
Summary of allowance for loan and lease losses and recorded investment in loans based on portfolio segment and impairment method	Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - March 31, 2018 Beginning balance $ 823 $ 3,779 $ 505 $ 2,129 $ 694 $ 7,930 Charge Offs - (19 ) - - (1 ) $ (20 ) Recoveries - 3 - 1 5 9 Provision 155 (90 ) 12 229 (6 ) 300 Ending Balance $ 978 $ 3,673 $ 517 $ 2,359 $ 692 $ 8,219 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at March 31, 2018 Allowance: Ending balance: individually evaluated for impairment $ - $ - $ - $ 170 $ 4 $ 174 Ending balance: collectively evaluated for impairment $ 978 $ 3,673 $ 517 $ 2,189 $ 688 $ 8,045 Loans: Ending balance: individually evaluated for impairment $ - $ 548 $ - $ 2,367 $ 190 $ 3,105 Ending balance: collectively evaluated for impairment $ 107,078 $ 338,038 $ 50,266 $ 149,453 $ 58,766 $ 703,601 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2017 Allowance: Ending balance: individually evaluated for impairment $ - $ 146 $ - $ 178 $ 5 $ 329 Ending balance: collectively evaluated for impairment $ 823 $ 3,633 $ 505 $ 1,951 $ 689 $ 7,601 Loans: Ending balance: individually evaluated for impairment $ - $ 1,385 $ - $ 1,830 $ 197 $ 3,412 Ending balance: collectively evaluated for impairment $ 101,554 $ 330,769 $ 51,947 $ 149,024 $ 59,422 $ 692,716 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - March 31, 2017 Beginning balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Charge Offs - - - (22 ) (29 ) $ (51 ) Recoveries 1 - 1 - 3 5 Provision (207 ) (125 ) 121 72 139 - Ending Balance $ 998 $ 3,196 $ 469 $ 2,013 $ 1,003 $ 7,679
Summary of credit risk profile of the Company's loan portfolio based on rating category	March 31, 2018 Commercial Commercial RE Agricultural Residential Consumer & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 19 $ 9 $ - $ 828 $ 1 $ 857 3 18,237 92,736 7,741 112,491 56,656 287,861 4 84,804 243,601 42,064 36,370 2,065 408,904 Total Pass (1 - 4) 103,060 336,346 49,805 149,689 58,722 697,622 Special Mention (5) 3,395 1,474 461 - 61 5,391 Substandard (6) 88 438 - 2,094 173 2,793 Doubtful (7) 535 328 - 37 - 900 Loss (8) - - - - - - Total Loans $ 107,078 $ 338,586 $ 50,266 $ 151,820 $ 58,956 $ 706,706 December 31, 2017 Commercial Commercial RE Agricultural Residential Consumer & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 96 $ 13 $ - $ 832 $ 1 $ 942 3 19,883 93,222 8,080 114,130 57,204 292,519 4 80,448 236,217 43,735 34,271 2,151 396,822 Total Pass (1 - 4) 100,427 329,452 51,815 149,233 59,356 690,283 Special Mention (5) 512 1,100 132 - 66 1,810 Substandard (6) 7 580 - 1,583 197 2,367 Doubtful (7) 608 1,022 - 38 - 1,668 Loss (8) - - - - - - Total Loans $ 101,554 $ 332,154 $ 51,947 $ 150,854 $ 59,619 $ 696,128
Summary of loan portfolio aging analysis	($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans March 31, 2018 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 209 $ 20 $ 3 $ 232 $ 106,846 $ 107,078 Commercial RE & Construction 47 - 255 302 338,284 338,586 Agricultural & Farmland - - - - 50,266 50,266 Residential Real Estate 375 10 975 1,360 150,460 151,820 Consumer & Other 196 126 60 382 58,574 58,956 Total Loans $ 827 $ 156 $ 1,293 $ 2,276 $ 704,430 $ 706,706 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2017 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 85 $ - $ 88 $ 173 $ 101,381 $ 101,554 Commercial RE & Construction 110 - 1,086 1,196 330,958 332,154 Agricultural & Farmland - - - - 51,947 51,947 Residential Real Estate 484 379 433 1,296 149,558 150,854 Consumer & Other 182 21 103 306 59,313 59,619 Total Loans $ 861 $ 400 $ 1,710 $ 2,971 $ 693,157 $ 696,128
Summary of impaired loan activity	Three Months Ended March 31, 2018 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 548 575 - 725 6 Agricultural & Farmland - - - - - Residential Real Estate 1,301 1,344 - 2,005 20 Consumer & Other 105 104 - 118 2 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction - - - - - Agricultural & Farmland - - - - - Residential Real Estate 1,066 1,085 170 613 7 Consumer & Other 85 85 4 86 1 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 548 $ 575 $ - $ 725 $ 6 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 2,367 $ 2,429 $ 170 $ 2,618 $ 27 Consumer & Other $ 190 $ 189 $ 4 $ 204 $ 3 Twelve Months Ended December 31, 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 696 722 - 756 34 Agricultural & Farmland - - - - - Residential Real Estate 752 795 - 1,460 67 Consumer & Other 110 110 - 128 9 With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 689 689 146 713 - Agricultural & Farmland - - - - - Residential Real Estate 1,078 1,097 178 628 25 Consumer & Other 87 87 5 91 5 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 1,385 $ 1,411 $ 146 $ 1,469 $ 34 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,830 $ 1,892 $ 178 $ 2,088 $ 92 Consumer & Other $ 197 $ 197 $ 5 $ 219 $ 14 Three Months Ended Average Recorded Interest Income March 31, 2017 Investment Recognized ($'s in thousands) With no related allowance recorded: Commercial & Industrial $ - $ - Commercial RE & Construction 644 12 Agricultural & Farmland - - Residential Real Estate 1,355 18 Consumer & Other 139 2 With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction 788 (2 ) Agricultural & Farmland - - Residential Real Estate 637 7 Consumer & Other 167 1 Totals: Commercial & Industrial $ - $ - Commercial RE & Construction $ 1,432 $ 10 Agricultural & Farmland $ - $ - Residential Real Estate $ 1,992 $ 25 Consumer & Other $ 306 $ 3
Summary of newly restructured loans by type of modification	($ in thousands) Number of Contracts Recorded Balance Residential Real Estate 1 $ 61 Commercial Real Estate 1 159 Total Modifications 2 $ 220

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	3 Months Ended
	Mar. 31, 2018
Mortgage Servicing Rights [Abstract]
Summary of mortgage servicing rights capitalized and related amortization	($ in thousands) 2018 2017 Carrying amount, January 1 $ 9,907 $ 8,422 Mortgage servicing rights capitalized during the year 502 488 Mortgage servicing rights amortization during the year (246 ) (218 ) Net change in valuation allowance 92 35 Carrying amount, March 31 $ 10,255 $ 8,727 Valuation allowance: January 1 $ 151 $ 228 Increase/(reduction) (92 ) (35 ) March 31 $ 59 $ 193

Derivative Financial Instrume22

Derivative Financial Instruments and Repurchase Agreements (Tables)	3 Months Ended
	Mar. 31, 2018
Derivative Financial Instruments and Repurchase Agreements [Abstract]
Schedule of fair values of derivative instruments on the balance sheet	Asset Derivatives Liability Derivatives March 31, 2018 March 31, 2018 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 1,144 Other Liabilities $ 1,144 Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2017 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 698 Other Liabilities $ 698

Fair Value of Assets and Liab23

Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
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 $ 14,166 $ - $ 14,166 $ - Mortgage-backed securities 64,731 - 64,731 - State and political subdivisions 13,090 - 13,090 - Interest rate contracts - assets 1,144 - 1,144 - Interest rate contracts - liabilities (1,144 ) - (1,144 ) - ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 12,708 $ - $ 12,708 $ - Mortgage-backed securities 56,762 - 56,762 - State and political subdivisions 13,250 - 13,250 - Equity securities 70 - 70 - Interest rate contracts - assets 698 - 698 - Interest rate contracts - liabilities (698 ) - (698 ) -
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 $ 237 $ - $ - $ 237 Mortgage Servicing Rights 754 - - 754 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 982 $ - $ - $ 982 Mortgage Servicing Rights 1,490 - - 1,490
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring	Fair Value at Valuation ($'s in thousands) 2018 Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 237 Market comparable properties Comparability adjustments (%) 20 % Mortgage servicing rights 754 Discounted cash flow Discount Rate 10.15 % Constant prepayment rate 6.39 % P&I earnings credit 1.88 % T&I earnings credit 2.62 % Inflation for cost of servicing 1.50 % Fair Value at Valuation ($'s in thousands) 2017 Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 982 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,490 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.51 % P&I earnings credit 1.56 % T&I earnings credit 2.13 % Inflation for cost of servicing 1.50 %
Summary of estimated fair values of company's financial instruments	March 31, Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) ($ in thousands) Financial assets Cash and cash equivalents $ 48,329 $ 48,329 $ - $ - Loans held for sale 8,893 - 9,058 - Loans, net of allowance for loan losses 698,988 - - 684,348 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Accrued interest receivable 1,925 - 1,925 - Financial liabilities Deposits $ 748,795 $ 531,391 $ 215,158 $ - Repurchase agreements 14,505 - 14,505 - FHLB advances 18,500 - 18,319 - Trust preferred securities 10,310 - 9,446 - Accrued interest payable 633 - 633 - December 31, 2017 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) ($ in thousands) Financial assets Cash and due from banks $ 26,616 $ 26,616 $ - $ - Loans held for sale 3,940 - 4,041 - Loans, net of allowance for loan losses 688,685 - - 686,940 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Accrued interest receivable 1,825 - 1,825 - Financial liabilities Deposits $ 729,600 $ 511,782 $ 220,823 $ - Repurchase agreements 15,082 - 15,082 - FHLB advances 18,500 - 18,385 - Trust preferred securities 10,310 - 9,673 - Accrued interest payable 592 - 592 -

Share Based Compensation (Table

Share Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Share Based Compensation [Abstract]
Schedule of option activity under the Company's plans	($ in thousands - except per share data) Shares Weighted-Average Exercise Price Weighted-Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2017 92,500 $ 6.97 Granted - - Exercised (5,750 ) 6.98 Forfeited - - Expired - - Outstanding, March 31, 2018 86,750 $ 6.97 1.87 $ 1,001 Exercisable, March 31, 2018 86,750 $ 6.97 1.87 $ 1,001
Schedule of restricted stock activity under the Company's plans	Shares Weighted-Average Value per Share Nonvested, December 31, 2017 52,258 $ 14.91 Granted 15,268 17.60 Vested (21,632 ) 13.95 Forfeited - - Nonvested, March 31, 2018 45,894 $ 16.26

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Distributed earnings allocated to common shares	$ 486	$ 319
Undistributed earnings allocated to common shares	1,720	1,427
Net earnings allocated to common shares	2,206	1,746
Net earnings allocated to participating securities	3	3
Dividends on convertible preferred shares	244	244
Net Income allocated to common shares and participating securities	$ 2,453	$ 1,993
Weighted average shares outstanding for basic earnings per share	5,519	4,855
Dilutive effect of stock compensation	72	74
Dilutive effect of convertible shares	1,464	1,458
Weighted average shares outstanding for diluted earnings per share	7,055	6,387
Basic earnings per common share	$ 0.4	$ 0.36
Diluted earnings per common share	$ 0.35	$ 0.31

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Earnings Per Share (Textual)
Conversion current price | $ / shares	$ 10.2374
Conversion of outstanding depository shares	1,500,000
Conversion of common stock, shares	1,465,222

Securities (Details)

Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Summary of amortized cost and approximate fair values of securities
Amortized Cost	$ 93,179	$ 82,969
Gross Unrealized Gains	408	598
Gross Unrealized Losses	(1,600)	(777)
Fair Value	91,987	82,790
U.S. Treasury and Government agencies [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost	14,299	12,715
Gross Unrealized Gains	42	62
Gross Unrealized Losses	(175)	(69)
Fair Value	14,166	12,708
Mortgage-backed securities [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost	66,068	57,355
Gross Unrealized Gains	57	97
Gross Unrealized Losses	(1,394)	(690)
Fair Value	64,731	56,762
State and political subdivisions [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost	12,812	12,829
Gross Unrealized Gains	309	439
Gross Unrealized Losses	(31)	(18)
Fair Value	$ 13,090	13,250
Equity securities [Member]
Summary of amortized cost and approximate fair values of securities
Amortized Cost		70
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value		$ 70

Securities (Details 1)

Securities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Summary of amortized cost and fair value of securities available for sale by contractual maturity
Available for Sale Amortized Cost, Within one year	$ 1,560
Available for Sale Amortized Cost, Due after one year through five years	9,194
Available for Sale Amortized Cost, Due after five years through ten years	10,990
Available for Sale Amortized Cost, Due after ten years	5,367
Available for Sale Amortized Cost	27,111
Available for Sale, Amortized Cost, Mortgage-backed securities	66,068
Available for Sale, Amortized Cost, Totals	93,179	$ 82,969
Available for Sale Fair Value, Within one year	1,578
Available for Sale Fair Value, Due after one year through five years	9,214
Available for Sale Fair Value, Due after five years through ten years	10,990
Available for Sale Fair Value, Due after ten years	5,474
Available for Sale Fair Value	27,256
Available for Sale, Fair Value, Mortgage-backed securities	64,731
Available for Sale, Fair Value, Totals	$ 91,987	$ 82,790

Securities (Details 2)

Securities (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	$ 55,966	$ 41,785
Less than 12 Months, Unrealized Losses	(1,027)	(350)
12 Months or Longer, Fair Value	16,819	17,558
12 Months or Longer, Unrealized Losses	(573)	(427)
Total, Fair Value	72,785	59,343
Total, Unrealized Losses	(1,600)	(777)
U.S. Treasury and Government Agencies [Member]
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	7,424	5,675
Less than 12 Months, Unrealized Losses	(121)	(27)
12 Months or Longer, Fair Value	2,546	2,559
12 Months or Longer, Unrealized Losses	(54)	(42)
Total, Fair Value	9,970	8,234
Total, Unrealized Losses	(175)	(69)
Mortgage-backed securities [Member]
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	47,336	35,205
Less than 12 Months, Unrealized Losses	(894)	(319)
12 Months or Longer, Fair Value	13,953	14,673
12 Months or Longer, Unrealized Losses	(500)	(371)
Total, Fair Value	61,289	49,878
Total, Unrealized Losses	(1,394)	(690)
State and political subdivisions [Member]
Schedule of securities with unrealized losses
Less than 12 Months, Fair Value	1,206	905
Less than 12 Months, Unrealized Losses	(12)	(4)
12 Months or Longer, Fair Value	320	326
12 Months or Longer, Unrealized Losses	(19)	(14)
Total, Fair Value	1,526	1,231
Total, Unrealized Losses	$ (31)	$ (18)

Securities (Details Textual)

Securities (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Securities (Textual)
Fair value of securities pledged as collateral	$ 45,700	$ 38,900
Securities delivered for repurchase agreements	19,200	19,100
Total fair value of investments	$ 72,785	$ 59,343
Fair value as a percentage of available-for-sale investment portfolio	79.00%	72.00%
Unrealized loss on the securities portfolio	$ 1,600	$ 780

Loans and Allowance for Loan 31

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Summary of categories of loans
Total Loans	$ 706,706	$ 696,128
Non-Accrual Loans	2,321	2,704
Net deferred costs	501	487
Total Loans, net deferred costs	707,207	696,615
Allowance for loan losses	(8,219)	(7,930)
Commercial & Industrial [Member]
Summary of categories of loans
Total Loans	107,078	101,554
Non-Accrual Loans	35	121
Commercial RE & Construction [Member]
Summary of categories of loans
Total Loans	338,586	332,154
Non-Accrual Loans	487	1,322
Agricultural & Farmland [Member]
Summary of categories of loans
Total Loans	50,266	51,947
Non-Accrual Loans
Residential Real Estate [Member]
Summary of categories of loans
Total Loans	151,820	150,854
Non-Accrual Loans	1,714	1,123
Consumer & Other [Member]
Summary of categories of loans
Total Loans	58,956	59,619
Non-Accrual Loans	$ 85	$ 138

Loans and Allowance for Loan 32

Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	$ 7,930	$ 7,725
Charge Offs	(20)	(51)
Recoveries	9	5
Provision	300
Ending Balance	8,219	7,679
Allowance: Ending balance: individually evaluated for impairment	174		$ 329
Allowance: Ending balance: collectively evaluated for impairment	8,045		7,601
Loans: Ending balance: individually evaluated for impairment	3,105		3,412
Loans: Ending balance: collectively evaluated for impairment	703,601		692,716
Commercial & Industrial [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	823	1,204
Charge Offs
Recoveries		1
Provision	155	(207)
Ending Balance	978	998
Allowance: Ending balance: individually evaluated for impairment
Allowance: Ending balance: collectively evaluated for impairment	978		823
Loans: Ending balance: individually evaluated for impairment
Loans: Ending balance: collectively evaluated for impairment	107,078		101,554
Commercial RE & Construction [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	3,779	3,321
Charge Offs	(19)
Recoveries	3
Provision	90	(125)
Ending Balance	3,673	3,196
Allowance: Ending balance: individually evaluated for impairment			146
Allowance: Ending balance: collectively evaluated for impairment	3,673		3,633
Loans: Ending balance: individually evaluated for impairment	548		1,385
Loans: Ending balance: collectively evaluated for impairment	338,038		330,769
Agricultural & Farmland [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	505	347
Charge Offs
Recoveries		1
Provision	12	121
Ending Balance	517	469
Allowance: Ending balance: individually evaluated for impairment
Allowance: Ending balance: collectively evaluated for impairment	517		505
Loans: Ending balance: individually evaluated for impairment
Loans: Ending balance: collectively evaluated for impairment	50,266		51,947
Residential Real Estate [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	2,129	1,963
Charge Offs		(22)
Recoveries	1
Provision	229	72
Ending Balance	2,359	2,013
Allowance: Ending balance: individually evaluated for impairment	170		178
Allowance: Ending balance: collectively evaluated for impairment	2,189		1,951
Loans: Ending balance: individually evaluated for impairment	2,367		1,830
Loans: Ending balance: collectively evaluated for impairment	149,453		149,024
Consumer & Other [Member]
Summary of balance of the allowance for loan losses and the recorded investment in loans
Beginning balance	694	890
Charge Offs	(1)	(29)
Recoveries	5	3
Provision	(6)	139
Ending Balance	692	$ 1,003
Allowance: Ending balance: individually evaluated for impairment	4		5
Allowance: Ending balance: collectively evaluated for impairment	688		689
Loans: Ending balance: individually evaluated for impairment	190		197
Loans: Ending balance: collectively evaluated for impairment	$ 58,766		$ 59,422

Loans and Allowance for Loan 33

Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	$ 706,706	$ 696,128
Loan Grade 1-2 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	857	942
Loan Grade 3 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	287,861	292,519
Loan Grade 4 Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	408,904	396,822
Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	697,622	690,283
Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	5,391	1,810
Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	2,793	2,367
Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	900	1,668
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	107,078	101,554
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	19	96
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	18,237	19,883
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	84,804	80,448
Commercial & Industrial [Member] | Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	103,060	100,427
Commercial & Industrial [Member] | Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	3,395	512
Commercial & Industrial [Member] | Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	88	7
Commercial & Industrial [Member] | Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	535	608
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	338,586	332,154
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	9	13
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	92,736	93,222
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	243,601	236,217
Commercial RE & Construction [Member] | Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	336,346	329,452
Commercial RE & Construction [Member] | Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	1,474	1,100
Commercial RE & Construction [Member] | Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	438	580
Commercial RE & Construction [Member] | Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	328	1,022
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	50,266	51,947
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
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	7,741	8,080
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	42,064	43,735
Agricultural & Farmland [Member] | Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	49,805	51,815
Agricultural & Farmland [Member] | Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	461	132
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	151,820	150,854
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	828	832
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	112,491	114,130
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	36,370	34,271
Residential Real Estate [Member] | Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	149,689	149,233
Residential Real Estate [Member] | Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
Residential Real Estate [Member] | Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	2,094	1,583
Residential Real Estate [Member] | Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	37	38
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	58,956	59,619
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	1
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	56,656	57,204
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	2,065	2,151
Consumer & Other [Member] | Total Pass [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	58,722	59,356
Consumer & Other [Member] | Special Mention [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	61	66
Consumer & Other [Member] | Substandard [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans	173	197
Consumer & Other [Member] | Doubtful [Member]
Summary of credit risk profile of the Company's loan portfolio based on rating category
Total Loans
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 34

Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Summary of loan portfolio aging analysis
Total Past Due	$ 2,276	$ 2,971
Current	704,430	693,157
Total Loans Receivable	706,706	696,128
30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	827	861
60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	156	400
Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	1,293	1,710
Commercial & Industrial [Member]
Summary of loan portfolio aging analysis
Total Past Due	232	173
Current	106,846	101,381
Total Loans Receivable	107,078	101,554
Commercial & Industrial [Member] | 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	209	85
Commercial & Industrial [Member] | 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	20
Commercial & Industrial [Member] | Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	3	88
Commercial RE & Construction [Member]
Summary of loan portfolio aging analysis
Total Past Due	302	1,196
Current	338,284	330,958
Total Loans Receivable	338,586	332,154
Commercial RE & Construction [Member] | 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	47	110
Commercial RE & Construction [Member] | 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due
Commercial RE & Construction [Member] | Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	255	1,086
Agricultural & Farmland [Member]
Summary of loan portfolio aging analysis
Total Past Due
Current	50,266	51,947
Total Loans Receivable	50,266	51,947
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	1,360	1,296
Current	150,460	149,558
Total Loans Receivable	151,820	150,854
Residential Real Estate [Member] | 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	375	484
Residential Real Estate [Member] | 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	10	379
Residential Real Estate [Member] | Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	975	433
Consumer & Other [Member]
Summary of loan portfolio aging analysis
Total Past Due	382	306
Current	58,574	59,313
Total Loans Receivable	58,956	59,619
Consumer & Other [Member] | 30 to 59 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	196	182
Consumer & Other [Member] | 60 to 89 Days Past Due [Member]
Summary of loan portfolio aging analysis
Total Past Due	126	21
Consumer & Other [Member] | Greater Than 90 Days [Member]
Summary of loan portfolio aging analysis
Total Past Due	$ 60	$ 103

Loans and Allowance for Loan 35

Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
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
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
Commercial RE & Construction [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment	548		696
With no related allowance recorded, Unpaid Principal Balance	575		722
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	725	644	756
With no related allowance recorded, Interest Income Recognized	6	12	34
With a specific allowance recorded, Recorded Investment			689
With a specific allowance recorded, Unpaid Principal Balance			689
With a specific allowance recorded, Related Allowance			146
With a specific allowance recorded, Average Recorded Investment		788	713
With a specific allowance recorded, Interest Income Recognized		(2)
Total Recorded Investment	548		1,385
Total Unpaid Principal Balance	575		1,411
Total Related Allowance			146
Total Average Recorded Investment	725	1,432	1,469
Total Interest Income Recognized	6	10	34
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	1,301		752
With no related allowance recorded, Unpaid Principal Balance	1,344		795
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	2,005	1,355	1,460
With no related allowance recorded, Interest Income Recognized	20	18	67
With a specific allowance recorded, Recorded Investment	1,066		1,078
With a specific allowance recorded, Unpaid Principal Balance	1,085		1,097
With a specific allowance recorded, Related Allowance	170		178
With a specific allowance recorded, Average Recorded Investment	613	637	628
With a specific allowance recorded, Interest Income Recognized	7	7	25
Total Recorded Investment	2,367		1,830
Total Unpaid Principal Balance	2,429		1,892
Total Related Allowance	170		178
Total Average Recorded Investment	2,618	1,992	2,088
Total Interest Income Recognized	27	25	92
Consumer & Other [Member]
Summary of Impaired loan activity
With no related allowance recorded, Recorded Investment	105		110
With no related allowance recorded, Unpaid Principal Balance	104		110
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	118	139	128
With no related allowance recorded, Interest Income Recognized	2	2	9
With a specific allowance recorded, Recorded Investment	85		87
With a specific allowance recorded, Unpaid Principal Balance	85		87
With a specific allowance recorded, Related Allowance	4		5
With a specific allowance recorded, Average Recorded Investment	86	167	91
With a specific allowance recorded, Interest Income Recognized	1	1	5
Total Recorded Investment	190		197
Total Unpaid Principal Balance	189		197
Total Related Allowance	4		5
Total Average Recorded Investment	204	306	219
Total Interest Income Recognized	$ 3	$ 3	$ 14

Loans and Allowance for Loan 36

Loans and Allowance for Loan Losses (Details 5) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)Contracts
Financing Receivable, Impaired [Line Items]
Number of Contracts | Contracts	2
Total Modifications | $	$ 220
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Number of Contracts | Contracts	1
Total Modifications | $	$ 61
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Number of Contracts | Contracts	1
Total Modifications | $	$ 159

Loans and Allowance for Loan 37

Loans and Allowance for Loan Losses (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Loans and Allowance for Loan Losses (Textual)
Principal amount outstanding of loans held-in-portfolio	$ 100
Impaired loans which included in groups of homogenous loans	Impaired loans less than $100,000 are included in groups of homogenous loans.

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Mortgage servicing rights capitalized and related amortization
Carrying amount, January 1	$ 9,907	$ 8,422
Mortgage servicing rights capitalized during the year	502	488
Mortgage servicing rights amortization during the year	(246)	(218)
Net change in valuation allowance	92	35
Carrying amount, March 31	10,255	8,727
Valuation allowance:
January 1	151	228
Increase/(reduction)	(92)	(35)
March 31	$ 59	$ 193

Mortgage Servicing Rights (De39

Mortgage Servicing Rights (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Mortgage Servicing Rights (Textual)
Unpaid principal balance of mortgage loans	$ 1,000		$ 994.9
Contractually specified servicing fees	$ 0.6	$ 0.6

Derivative Financial Instrume40

Derivative Financial Instruments and Repurchase Agreements (Details) - Derivatives not designated as hedging instruments [Member] - Interest rate contracts [Member] - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Assets [Member]
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet
Asset Derivatives	$ 1,144	$ 698
Other Liabilities [Member]
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet
Liability Derivatives	$ 1,144	$ 698

Derivative Financial Instrume41

Derivative Financial Instruments and Repurchase Agreements (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Derivative Financial Instruments (Textual)
Notional amount of customer-facing swaps	$ 49	$ 39.3
Cash as collateral	0.9
Mortgage-backed securities	$ 5	$ 14.2
Securities maturity, description	These securities have various maturity dates beyond 2020.

Fair Value of Assets and Liab42

Fair Value of Assets and Liabilities (Details) - Available-For-Sale Securities [Member] - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
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	$ 14,166	$ 12,708
Mortgage-backed securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	64,731	56,762
State and political subdivisions [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	13,090	13,250
Equity securities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring		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	1,144	698
Interest rate contracts - liabilities [Member]
Summary of fair value measurements of assets measured at fair value on a recurring basis
Assets, Fair value, Recurring	(1,144)	(698)
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	14,166	12,708
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	64,731	56,762
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	13,090	13,250
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
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	1,144	698
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	(1,144)	(698)
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 Liab43

Fair Value of Assets and Liabilities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Impaired Loans [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring	$ 237	$ 982
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	237	982
Mortgage Servicing Rights [Member]
Summary of fair value measurements of assets measured at fair value on a non-recurring basis
Assets, Fair value, Nonrecurring	754	1,490
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	$ 754	$ 1,490

Fair Value of Assets and Liab44

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
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	$ 237	$ 982
Fair Value Measurements, Valuation Technique	Market comparable properties	Market comparable properties
Fair Value Measurements, Unobservable Inputs	Comparability adjustments (%)	Comparability adjustments (%)
Fair Value Measurements, Range	20.00%
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	$ 754	$ 1,490
Fair Value Measurements, Valuation Technique	Discounted cash flow	Discounted cash flow
Fair Value Measurements, Unobservable Inputs	Discount Rate	Discount Rate
Fair Value Measurements, Range	10.15%	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	6.39%	7.51%
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	1.88%	1.56%
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	2.62%	2.13%
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	1.50%	1.50%

Fair Value of Assets and Liab45

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Financial assets
Cash and cash equivalents	$ 48,329	$ 26,616	$ 45,740	$ 17,012
Loans held for sale	8,893	3,940
Loans, net of allowance for loan losses	698,988	688,685
Federal Reserve and FHLB Bank stock	3,748	3,748
Accrued interest receivable	1,925	1,825
Financial liabilities
Deposits	748,795	729,600
FHLB advances	18,500	18,500
Repurchase agreements	18,500	18,500
Trust preferred securities	10,310	10,310
Accrued interest payable	633	592
Level 1 [Member]
Financial assets
Cash and cash equivalents	48,329	26,616
Loans held for sale
Loans, net of allowance for loan losses
Federal Reserve and FHLB Bank stock
Accrued interest receivable
Financial liabilities
Deposits	531,391	511,782
FHLB advances
Repurchase agreements
Trust preferred securities
Accrued interest payable
Level 2 [Member]
Financial assets
Cash and cash equivalents
Loans held for sale	9,058	4,041
Loans, net of allowance for loan losses
Federal Reserve and FHLB Bank stock	3,748	3,748
Accrued interest receivable	1,925	1,825
Financial liabilities
Deposits	215,158	220,823
FHLB advances	14,505	15,082
Repurchase agreements	18,319	18,385
Trust preferred securities	9,446	9,673
Accrued interest payable	633	592
Level 3 [Member]
Financial assets
Cash and cash equivalents
Loans held for sale
Loans, net of allowance for loan losses	684,348	686,940
Federal Reserve and FHLB Bank stock
Accrued interest receivable
Financial liabilities
Deposits
FHLB advances
Repurchase agreements
Trust preferred securities
Accrued interest payable

Share Based Compensation (Detai

Share Based Compensation (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Share Based Compensation [Abstract]
Shares Outstanding, December 31, 2017 | shares	92,500
Shares Granted | shares
Shares Exercised | shares	(5,750)
Shares Forfeited | shares
Shares Expired | shares
Shares Outstanding, March 31, 2018 | shares	86,750
Shares Exercisable, March 31, 2018 | shares	86,750
Weighted-Average Exercise Price Outstanding, December 31, 2017 | $ / shares	$ 6.97
Weighted-Average Exercise Price Granted | $ / shares
Weighted-Average Exercise Price Exercised | $ / shares	6.98
Weighted-Average Exercise Price Forfeited | $ / shares
Weighted-Average Exercise Price Expired | $ / shares
Weighted-Average Exercise Price Outstanding, March 31, 2018 | $ / shares	6.97
Weighted-Average Exercise Price Exercisable, March 31, 2018 | $ / shares	$ 6.97
Weighted-Average Remaining Term Outstanding, March 31, 2018	1 year 10 months 14 days
Weighted-Average Remaining Term Exercisable, March 31, 2018	1 year 10 months 14 days
Aggregate Intrinsic Value, Outstanding, March 31, 2018 | $	$ 1,001
Aggregate Intrinsic Value, Exercisable, March 31, 2018 | $	$ 1,001

Share Based Compensation (Det47

Share Based Compensation (Details 1) - Restricted Stock [Member]	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested, December 31, 2017 | shares	52,258
Nonvested Shares Granted | shares	15,268
Nonvested Shares, Vested | shares	(21,632)
Nonvested Shares, Forfeited | shares
Nonvested Shares, March 31, 2018 | shares	45,894
Nonvested Weighted-Average Value per Share, December 31, 2017 | $ / shares	$ 14.91
Nonvested Weighted-Average Value per Share, Granted | $ / shares	17.60
Nonvested Weighted-Average Value per Share, Vested | $ / shares	13.95
Nonvested Weighted-Average Value per Share, Forfeited | $ / shares
Nonvested Weighted-Average Value per Share, March 31, 2018 | $ / shares	$ 16.26

Share Based Compensation (Det48

Share Based Compensation (Details Textual) - USD ($) $ in Thousands	Feb. 05, 2013	Apr. 30, 2017	Mar. 31, 2018
Share Based Compensation (Textual)
Shares available for grants of awards
Total intrinsic value			$ 60
Option exercised shares			5,750
Cash received from exercised options			$ 40
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)
SAR and common restricted stock, shares			500,000
Shares available for grants of awards		500,000	17,268
Restricted Stock [Member]
Share Based Compensation (Textual)
Option awards vesting period	4 years
Compensation cost charged against income			$ 80
Total income tax benefit recognized in income statement for share-based compensation arrangements			$ 30
Weighted-average period term			1 year 10 months 25 days
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan			$ 700

Equity Capital (Details)

Equity Capital (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 09, 2018	Mar. 31, 2018	Mar. 31, 2017
Equity Capital [Abstract]
Shares issued and sold an aggregate	1,666,666
Shares per price	$ 18
Gross proceeds amount	$ 30,000	$ 27,912
Realized net proceeds	$ 27,900