ChoiceOne Financial Services (COFS) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document And Entity Information
Entity Registrant Name	CHOICEONE FINANCIAL SERVICES INC
Entity Central Index Key	803,164
Document Type	10-Q
Trading Symbol	COFS
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,276,097
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 12,644	$ 11,187
Securities available for sale (Note 2)	177,444	160,136
Federal Home Loan Bank stock	1,679	1,614
Federal Reserve Bank stock	1,573	1,573
Loans held for sale	2,838	4,957
Loans (Note 3)	362,603	349,304
Allowance for loan losses (Note 3)	(4,276)	(4,194)
Loans, net	358,327	345,110
Premises and equipment, net	12,394	11,847
Cash value of life insurance policies	12,526	12,261
Intangible assets, net	43	379
Goodwill	13,728	13,728
Other assets	5,468	4,954
Total assets	598,664	567,746
Liabilities
Deposits - noninterest-bearing	123,609	122,937
Deposits - interest-bearing	353,778	351,759
Total deposits	477,387	474,696
Federal funds purchased	624
Repurchase agreements	6,417	9,460
Advances from Federal Home Loan Bank	37,309	11,332
Other liabilities	3,348	2,416
Total liabilities	525,085	497,904
Shareholders' Equity
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,275,201 at September 30, 2016 and 3,295,228 at December 31, 2015	46,228	46,501
Retained earnings	24,866	22,138
Accumulated other comprehensive income, net	2,485	1,203
Total shareholders' equity	73,579	69,842
Total liabilities and shareholders' equity	$ 598,664	$ 567,746

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized	7,000,000	7,000,000
Common stock, outstanding	3,275,201	3,295,228

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest income
Loans, including fees	$ 4,210	$ 4,015	$ 12,293	$ 11,945
Securities:
Taxable	594	489	1,731	1,427
Tax exempt	358	361	1,088	1,067
Other	5	6	14	10
Total interest income	5,167	4,871	15,126	14,449
Interest expense
Deposits	190	222	599	663
Advances from Federal Home Loan Bank	44	17	119	64
Other	2	7	7	28
Total interest expense	236	246	725	755
Net interest income	4,931	4,625	14,401	13,694
Provision for loan losses				100
Net interest income after provision for loan losses	4,931	4,625	14,401	13,594
Noninterest income
Customer service charges	1,030	1,092	3,020	3,137
Insurance and investment commissions	290	219	740	852
Gains on sales of loans	508	308	1,345	1,120
Gains on sales of securities	28	155	255	208
Losses on sales and write-downs of other assets	(3)	(21)	(26)	(97)
Earnings on life insurance policies	88	87	265	562
Other	124	120	360	322
Total noninterest income	2,065	1,960	5,959	6,104
Noninterest expense
Salaries and benefits	2,542	2,323	7,519	6,835
Occupancy and equipment	626	598	1,959	1,786
Data processing	556	558	1,654	1,689
Professional fees	232	263	700	776
Supplies and postage	92	100	312	278
Advertising and promotional	52	54	184	179
Intangible amortization	112	112	336	336
Loan and collection expense	15	53	59	104
FDIC insurance	78	72	218	222
Other	364	469	1,426	1,441
Total noninterest expense	4,669	4,602	14,367	13,646
Income before income tax	2,327	1,983	5,993	6,052
Income tax expense	644	533	1,591	1,529
Net income	$ 1,683	$ 1,450	$ 4,402	$ 4,523
Basic earnings per share (Note 4) (in dollars per share)	$ 0.52	$ 0.44	$ 1.34	$ 1.37
Diluted earnings per share (Note 4) (in dollars per share)	0.52	0.44	1.34	1.37
Dividends declared per share (in dollars per share)	$ 0.17	$ 0.17	$ 0.51	$ 0.49

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of activity in secondar market loans
Net income	$ 1,683	$ 1,450	$ 4,402	$ 4,523
Other comprehensive income:
Changes in unrealized gains (losses) on investment securities available for sale, net of tax expense (benefit)	68	564	1,450	688
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense (benefit)	(19)	(102)	(168)	(137)
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense).
Other comprehensive income (loss), net of tax	49	462	1,282	551
Comprehensive income	$ 1,732	$ 1,912	$ 5,684	$ 5,074

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of activity in secondar market loans
Unrealized holding gains on available for sale securities, tax expense (benefit)	$ 36	$ 291	$ 748	$ 356
Reclassification adjustment for gain recognized in net income, tax expense (benefit)	$ (9)	$ (53)	$ (87)	$ (71)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock and Paid in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income, Net [Member]	Total
Balance, beginning at Dec. 31, 2014	$ 46,552	$ 18,565	$ 1,073	$ 66,190
Balance, beginning (in shares) at Dec. 31, 2014	3,295,834
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		4,523		4,523
Other comprehensive income			551	551
Shares issued	$ 153			153
Shares issued (shares)	10,010
Change in ESOP repurchase obligation	$ (4)			(4)
Shares repurchased	$ (371)			(371)
Shares repurchased (in shares)	(16,200)
Effect of employee stock purchases	$ 9			9
Stock-based compensation	$ 60			60
Stock-based compensation (in shares)	2,284
Cash dividends declared		(1,610)		(1,610)
Balance, ending at Sep. 30, 2015	$ 46,399	21,478	1,624	69,501
Balance, ending (in shares) at Sep. 30, 2015	3,291,928
Balance, beginning at Dec. 31, 2015	$ 46,501	22,138	1,203	$ 69,842
Balance, beginning (in shares) at Dec. 31, 2015	3,295,228			3,295,228
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		4,402		$ 4,402
Other comprehensive income			1,282	1,282
Shares issued	$ 137			137
Shares issued (shares)	11,559
Change in ESOP repurchase obligation	$ 127			127
Shares repurchased	$ (794)			(794)
Shares repurchased (in shares)	(35,000)
Effect of employee stock purchases	$ 9			9
Stock-based compensation	$ 248			248
Stock-based compensation (in shares)	3,414
Cash dividends declared		(1,674)		(1,674)
Balance, ending at Sep. 30, 2016	$ 46,228	$ 24,866	$ 2,485	$ 73,579
Balance, ending (in shares) at Sep. 30, 2016	3,275,201			3,275,201

CONSOLIDATED STATEMENTS OF CHA8

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Stockholders' Equity [Abstract]
Cash dividend declared, per share	$ 0.17	$ 0.17	$ 0.51	$ 0.49

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 4,402	$ 4,523
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses		100
Depreciation	757	736
Amortization	1,199	1,111
Compensation expense on stock purchases and restricted stock units	257	69
Gains on sales of securities	(255)	(208)
Gains on sales of loans	(1,345)	(1,120)
Loans originated for sale	(39,173)	(36,402)
Proceeds from loan sales	42,313	37,093
Earnings on bank-owned life insurance	(265)	(562)
Proceeds on bank-owned life insurance		461
(Gains) Losses on sales of other real estate owned	3	(11)
Write-downs of other real estate owned		108
Proceeds from sales of other real estate owned	28	299
Deferred federal income tax benefit	(86)	(209)
Net changes in other assets	(135)	(716)
Net changes in other liabilities	481	(452)
Net cash from operating activities	8,181	4,820
Securities available for sale:
Sales	14,538	23,329
Maturities, prepayments and calls	33,412	12,469
Purchases	(63,780)	(47,171)
Loan originations and payments, net	(13,700)	2,733
Additions to premises and equipment	(1,112)	(826)
Net cash from investing activities	(30,642)	(9,466)
Cash flows from financing activities:
Net change in deposits	2,691	32,268
Net change in repurchase agreements	(3,043)	(19,705)
Net change in federal funds purchased	624	1,171
Proceeds from Federal Home Loan Bank advances	271,000	116,575
Payments on Federal Home Loan Bank advances	(245,023)	(128,098)
Issuance of common stock	137	153
Repurchase of common stock	(794)	(371)
Cash dividends	(1,674)	(1,610)
Net cash from financing activities	23,918	383
Net change in cash and cash equivalents	1,457	(4,263)
Beginning cash and cash equivalents	11,187	16,650
Ending cash and cash equivalents	12,644	12,387
Supplemental disclosures of cash flow information:
Cash paid for interest	726	766
Cash paid for taxes	925	2,395
Loans transferred to other real estate owned	$ 483	$ 378

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2016 and September 30, 2015, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2016 and September 30, 2015, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2016 and September 30, 2015, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2016 and September 30, 2015. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2015. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. Stock Transactions A total of 4,112 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $95,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2016. A total of 4,793 shares of common stock were issued upon the exercise of stock options in the first three quarters of 2016. A total of 2,654 shares of common stock were issued to employees for a cash price of $51,000 under the Employee Stock Purchase Plan in the first nine months of 2016. A total of 3,414 shares of common stock were issued to employees upon vesting of Restricted Stock Units during the first three quarters of 2016. A total of 35,000 shares of common stock were repurchased by ChoiceOne in the first nine months of 2016. Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by issuance of one share of ChoiceOne common stock.

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: September 30, 2016 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 64,440 $ 381 $ (17 ) $ 64,804 U.S. Treasury 2,074 43 (1 ) 2,116 State and municipal 87,661 2,878 (25 ) 90,514 Mortgage-backed 8,511 62 (14 ) 8,559 Corporate 7,370 64 (1 ) 7,433 Foreign debt 1,000 2 — 1,002 Equity securities 2,614 204 — 2,818 Asset-backed securities 202 — (4 ) 198 Total $ 173,872 $ 3,634 $ (62 ) $ 177,444 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 57,406 $ 30 $ (229 ) $ 57,207 U.S. Treasury 6,133 0 (33 ) 6,100 State and municipal 76,005 1,858 (109 ) 77,754 Mortgage-backed 6,989 26 (45 ) 6,970 Corporate 8,418 8 (39 ) 8,387 Foreign debt 1,000 — (5 ) 995 Equity securities 2,279 174 — 2,453 Asset-backed securities 274 — (4 ) 270 Total $ 158,504 $ 2,096 $ (464 ) $ 160,136 Contractual maturities of securities available for sale at September 30, 2016 were as follows: (Dollars in thousands) Fair Value Due within one year $ 31,758 Due after one year through five years 95,744 Due after five years through ten years 44,022 Due after ten years 3,103 Total debt securities 174,627 Equity securities 2,817 Total $ 177,444 Securities with unrealized losses at September 30, 2016 and year-end 2015, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, were as follows: September 30, 2016 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 7,551 $ (18 ) $ — $ — $ 7,551 $ (18 ) State and municipal 3,506 (19 ) 260 (5 ) 3,766 (24 ) Mortgage-backed 2,827 (12 ) 280 (1 ) 3,107 (13 ) Corporate 501 (1 ) 399 (1 ) 900 (2 ) Asset-backed securities — — 198 (5 ) 198 (5 ) Total temporarily impaired $ 14,385 $ (50 ) $ 1,137 $ (12 ) $ 15,522 $ (62 ) December 31, 2015 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 38,567 $ (216 ) $ 986 $ (13 ) $ 39,553 $ (229 ) U.S. Treasury notes and bonds 6,101 (33 ) — — 6,101 (33 ) State and municipal 10,382 (69 ) 2,906 (40 ) 13,288 (109 ) Mortgage-backed 4,459 (41 ) 382 (4 ) 4,841 (45 ) Corporate 4,284 (33 ) 896 (6 ) 5,180 (39 ) Foreign debt 995 (5 ) — — 995 (5 ) Asset-backed securities — — 270 (4 ) 270 (4 ) Total temporarily impaired $ 64,788 $ (397 ) $ 5,440 $ (67 ) $ 70,228 $ (464 ) ChoiceOne reviews its securities portfolio on a quarterly basis to determine whether unrealized losses are considered to be temporary or other-than-temporary. No other-than-temporary impairment charges were recorded during the nine months ended September 30, 2016. ChoiceOne believed that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues.

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Agricultural Commercial Consumer Commercial Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2016 Beginning balance $ 399 $ 656 $ 279 $ 1,133 $ 44 $ 1,222 $ 563 $ 4,296 Charge-offs — — (68 ) — — (25 ) — (93 ) Recoveries — 8 49 5 — 11 — 73 Provision (11 ) (55 ) 30 340 (3 ) (205 ) (96 ) — Ending balance $ 388 $ 609 $ 290 $ 1,478 $ 41 $ 1,003 $ 467 $ 4,276 Nine Months Ended September 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (136 ) — — (94 ) — (263 ) Recoveries — 31 119 35 — 160 — 345 Provision (32 ) 26 10 412 (5 ) (451 ) 40 — Ending balance $ 388 $ 610 $ 290 $ 1,477 $ 41 $ 1,003 $ 467 $ 4,276 Individually evaluated for impairment $ 4 $ 8 $ 1 $ 167 $ — $ 321 $ — $ 501 Collectively evaluated for impairment $ 384 $ 602 $ 289 $ 1,310 $ 41 $ 682 $ 467 $ 3,775 Three Months Ended September 30, 2015 Beginning balance $ 279 $ 498 $ 193 $ 1,284 $ 28 $ 1,375 $ 695 $ 4,352 Charge-offs — — (65 ) — — (25 ) — (90 ) Recoveries — 11 25 15 — 4 — 55 Provision 10 (14 ) 57 (179 ) 15 (2 ) 113 — Ending balance $ 289 $ 495 $ 210 $ 1,120 $ 43 $ 1,352 $ 808 $ 4,317 Nine Months Ended September 30, 2015 Beginning balance $ 187 $ 527 $ 183 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs — — (172 ) — — (46 ) — (218 ) Recoveries 1 59 104 36 — 62 — 262 Provision 101 (91 ) 95 (557 ) 34 143 375 100 Ending balance $ 289 $ 495 $ 210 $ 1,120 $ 43 $ 1,352 $ 808 $ 4,317 Individually evaluated for impairment $ 3 $ 1 $ 29 $ 296 $ — $ 355 $ — $ 684 Collectively evaluated for impairment $ 286 $ 494 $ 181 $ 824 $ 43 $ 997 $ 808 $ 3,633 Loans September 30, 2016 Individually evaluated for impairment $ 534 $ 450 $ 26 $ 1,459 $ — $ 3,109 $ 5,578 Collectively evaluated for impairment 37,744 95,221 21,427 107,608 6,027 88,998 357,025 Ending balance $ 38,278 $ 95,671 $ 21,453 $ 109,067 $ 6,027 $ 92,107 $ 362,603 December 31, 2015 Individually evaluated for impairment $ 50 $ 192 $ 24 $ 2,790 $ — $ 2,529 $ 5,585 Collectively evaluated for impairment 40,182 94,155 20,066 94,946 5,390 88,980 343,719 Ending balance $ 40,232 $ 94,347 $ 20,090 $ 97,736 $ 5,390 $ 91,509 $ 349,304 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans, (2) the level of classified business loans, and (3) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 8. A description of the characteristics of the ratings follows: Risk ratings 1 and 2: These loans are considered pass credits. They exhibit good to exceptional credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 3: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 4: These loans are considered pass credits. However, they have potential developing weaknesses that, if not corrected, may cause deterioration in the ability of the borrower to repay the loan. While a loss is possible for a loan with this rating, it is not anticipated. Risk rating 5: These loans are considered special mention credits. Loans in this risk rating are considered to be inadequately protected by the net worth and debt service coverage of the borrower or of any pledged collateral. These loans have well defined weaknesses that may jeopardize the borrower’s ability to repay the loan. If the weaknesses are not corrected, loss of principal and interest could be probable. Risk rating 6: These loans are considered substandard credits. These loans have well defined weaknesses, the severity of which makes collection of principal and interest in full, questionable. Loans in this category may be placed on nonaccrual status. Risk rating 7: These loans are considered doubtful credits. Some loss of principal and interest has been determined to be probable. The estimate of the amount of loss could be affected by factors such as the borrower’s ability to provide additional capital or collateral. Loans in this category are on nonaccrual status. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category: Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 8,072 $ 10,416 $ 11,672 $ 10,480 $ 7,305 $ 3,875 Risk rating 3 21,626 25,189 63,450 66,921 57,355 57,540 Risk rating 4 7,269 3,086 19,242 16,169 40,692 29,826 Risk rating 5 1,267 1,491 1,227 574 3,153 3,776 Risk rating 6 44 50 80 129 562 2,719 Risk rating 7 — — — 74 — — $ 38,278 $ 40,232 $ 95,671 $ 94,347 $ 109,067 $ 97,736 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity: Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 Performing $ 21,448 $ 20,090 $ 6,027 $ 5,390 $ 91,317 $ 90,796 Nonperforming 5 — — — 336 282 Nonaccrual — — — — 454 431 $ 21,453 $ 20,090 $ 6,027 $ 5,390 $ 92,107 $ 91,509 The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2016: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Agricultural — $ — $ — 1 $ 113 $ 113 Residential real estate — — — 2 156 156 — $ — $ — 3 $ 269 $ 269 The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2015: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial real estate — $ — $ — 4 $ 448 $ 448 Residential real estate 1 85 85 2 193 193 1 $ 85 $ 85 6 $ 641 $ 641 The pre-modification and post-modification outstanding recorded investment represents amounts as of the date of loan modification. If a difference exists between the pre-modification and post-modification outstanding recorded investment, it represents impairment recognized through the provision for loan losses computed based on a loan’s post-modification present value of expected future cash flows discounted at the loan’s original effective interest rate. If no difference exists, a loss is not expected to be incurred based on an assessment of the borrower’s expected cash flows. The following schedule provides information on TDRs as of September 30, 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2016 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural — $ — 1 $ 113 The following schedule provides information on TDRs as of September 30, 2015 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2015 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate 2 $ 293 3 $ 409 Loans are classified as performing when they are current as to principal and interest payments or are past due on payments less than 90 days. Loans are classified as nonperforming when they are past due 90 days or more as to principal and interest payments or are considered a troubled debt restructuring. Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance September 30, 2016 With no related allowance recorded Agricultural $ 489 $ 493 $ — Commercial and industrial 177 177 — Consumer 5 5 — Commercial real estate 230 351 — Residential real estate 266 266 — Subtotal 1,167 1,292 — With an allowance recorded Agricultural 45 45 4 Commercial and industrial 273 247 8 Consumer 21 21 1 Commercial real estate 1,229 1,799 167 Residential real estate 2,843 2,859 321 Subtotal 4,411 4,971 501 Total Agricultural 534 538 4 Commercial and industrial 450 424 8 Consumer 26 26 1 Commercial real estate 1,459 2,150 167 Residential real estate 3,109 3,125 321 Total $ 5,578 $ 6,263 $ 501 December 31, 2015 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 74 103 — Consumer — — — Commercial real estate 1,540 1,540 — Residential real estate 13 13 — Subtotal 1,627 1,656 — With an allowance recorded Agricultural 50 50 3 Commercial and industrial 118 118 15 Consumer 24 24 1 Commercial real estate 1,250 1,755 191 Residential real estate 2,516 2,516 296 Subtotal 3,958 4,463 506 Total Agricultural 50 50 3 Commercial and industrial 192 221 15 Consumer 24 24 1 Commercial real estate 2,790 3,295 191 Residential real estate 2,529 2,529 296 Total $ 5,585 $ 6,119 $ 506 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the nine months ended September 30, 2016 and 2015: Average Interest (Dollars in thousands) Recorded Income Investment Recognized September 30, 2016 With no related allowance recorded Agricultural $ 154 $ (1 ) Commercial and industrial 63 — Consumer 1 — Commercial real estate 1,071 33 Residential real estate 134 46 Subtotal 1,423 78 With an allowance recorded Agricultural 79 16 Commercial and industrial 242 4 Consumer 22 3 Commercial real estate 1,426 116 Residential real estate 2,670 308 Subtotal 4,439 447 Total Agricultural 233 15 Commercial and industrial 305 4 Consumer 23 3 Commercial real estate 2,497 149 Residential real estate 2,804 354 Total $ 5,862 $ 525 September 30, 2015 With no related allowance recorded Agricultural $ — $ — Commercial and industrial 13 — Consumer 2 — Commercial real estate 941 23 Residential real estate 236 (1 ) Subtotal 1,192 22 With an allowance recorded Agricultural 65 (6 ) Commercial and industrial 26 1 Consumer 37 2 Commercial real estate 2,190 53 Residential real estate 2,402 64 Subtotal 4,720 114 Total Agricultural 65 (6 ) Commercial and industrial 39 1 Consumer 39 2 Commercial real estate 3,131 76 Residential real estate 2,638 63 Total $ 5,912 $ 136 An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing September 30, 2016 Agricultural $ — $ — $ 113 $ 113 $ 38,165 $ 38,278 $ — Commercial and industrial 97 — 249 346 95,325 95,671 — Consumer 40 6 5 51 21,402 21,453 5 Commercial real estate — 256 260 516 108,551 109,067 — Construction real estate — — — — 6,027 6,027 — Residential real estate 230 614 487 1,331 90,776 92,107 346 $ 367 $ 876 $ 1,114 $ 2,357 $ 360,246 $ 362,603 $ 351 December 31, 2015 Agricultural $ 3 $ — $ — $ 3 $ 40,229 $ 40,232 $ — Commercial and industrial 90 322 77 489 93,858 94,347 — Consumer 115 — — 115 19,975 20,090 — Commercial real estate 505 297 1,233 2,035 95,701 97,736 — Construction real estate 299 — — 299 5,091 5,390 — Residential real estate 1,012 364 200 1,576 89,933 91,509 29 $ 2,024 $ 983 $ 1,510 $ 4,517 $ 344,787 $ 349,304 $ 29 (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) September 30, December 31, 2016 2015 Agricultural $ 489 $ 50 Commercial and industrial 320 77 Consumer — — Commercial real estate 471 1,640 Construction real estate — — Residential real estate 455 431 $ 1,735 $ 2,198

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 4 - EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) September 30, September 30, 2016 2015 2016 2015 Basic Earnings Per Share Net income available to common shareholders $ 1,683 $ 1,450 $ 4,402 $ 4,523 Weighted average common shares outstanding 3,275,841 3,289,146 3,290,610 3,287,765 Basic earnings per share $ 0.52 $ 0.44 $ 1.34 $ 1.37 Diluted Earnings Per Share Net income available to common shareholders $ 1,683 $ 1,450 $ 4,402 $ 4,523 Weighted average common shares outstanding 3,275,841 3,289,146 3,290,610 3,287,765 Plus dilutive stock options and restricted stock units 3,949 6,686 4,171 6,841 Weighted average common shares outstanding and potentially dilutive shares 3,279,790 3,295,832 3,294,781 3,294,606 Diluted earnings per share $ 0.52 $ 0.44 $ 1.34 $ 1.37 There were 30,000 stock options as of September 30, 2016 and zero stock options as of September 30, 2015, that were considered to be anti-dilutive to earnings per share for the three-month and nine-month periods ended September 30, 2016 and 2015. These stock options have been excluded from the calculation above.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
FINANCIAL INSTRUMENTS	NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) September 30, 2016 Assets: Cash and due from banks $ 12,644 $ 12,644 $ 12,644 $ — $ — Securities available for sale 177,444 177,444 1,318 161,598 14,528 Federal Home Loan Bank and Federal Reserve Bank stock 3,252 3,252 — 3,252 — Loans held for sale 2,838 2,639 — — 2,639 Loans, net 358,327 345,497 — — 345,497 Liabilities: Noninterest-bearing deposits 123,609 123,609 — 123,609 — Interest-bearing deposits 353,778 353,842 — 353,842 — Federal funds purchased 624 624 — 624 — Repurchase agreements 6,417 6,417 — 6,417 — Federal Home Loan Bank advances 37,309 37,309 — 37,309 — December 31, 2015 Assets: Cash and due from banks $ 11,187 $ 11,187 $ 11,187 $ — $ — Securities available for sale 160,136 160,136 953 147,384 11,799 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 — 3,187 — Loans held for sale 4,957 5,109 — 5,109 — Loans, net 345,110 349,875 — — 349,875 Liabilities: Noninterest-bearing deposits 122,937 122,937 — 122,937 — Interest-bearing deposits 351,759 353,113 — 353,113 — Repurchase agreements 9,460 9,460 — 9,460 — Federal Home Loan Bank advances 11,332 12,028 — 12,028 — The estimated fair values approximate the carrying amounts for all assets and liabilities except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 6. The estimated fair value for loans is based on the rates charged at September 30, 2016 and December 31, 2015 for new loans with similar maturities, applied until the loan is assumed to reprice or be paid off. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair values for time deposits and Federal Home Loan Bank (“FHLB”) advances are based on the rates paid at September 30, 2016 and December 31, 2015 for new deposits or FHLB advances, applied until maturity. The estimated fair values for other financial instruments and off-balance sheet loan commitments are considered nominal.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 6 – FAIR VALUE MEASUREMENTS The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring basis and the valuation techniques used by the Bank to determine those fair values. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Bank has the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Bank’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. There were no liabilities measured at fair value as of September 30, 2016 or December 31, 2015. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) Quoted Prices Significant Significant Balance at Investment Securities, Available for Sale – September 30, 2016 U.S. Treasury notes and bonds $ — $ 2,116 $ — $ 2,116 U.S. Government and federal agency — 64,804 — 64,804 State and municipal — 77,885 12,629 90,514 Mortgage-backed — 8,559 — 8,559 Corporate — 7,034 399 7,433 Foreign debt — 1,002 — 1,002 Equity securities 1,318 — 1,500 2,818 Asset backed securities — 198 — 198 Total $ 1,318 $ 161,598 $ 14,528 $ 177,444 Investment Securities, Available for Sale - December 31, 2015 U.S. Treasury notes and bonds $ — $ 6,100 $ — $ 6,100 U.S. Government and federal agency — 57,207 — 57,207 State and municipal — 67,852 9,902 77,754 Mortgage-backed — 6,970 — 6,970 Corporate — 7,990 397 8,387 Foreign debt — 995 — 995 Equity securities 953 — 1,500 2,453 Asset backed securities — 270 — 270 Total $ 953 $ 147,384 $ 11,799 $ 160,136 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2016 2015 Investment Securities, Available for Sale Balance, January 1 $ 11,799 $ 11,642 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income 131 946 Net purchases, sales, calls, and maturities 2,598 (2,075 ) Net transfers into Level 3 — — Balance, September 30 $ 14,528 $ 10,513 Of the Level 3 assets that were held by the Bank at September 30, 2016, the net unrealized gain for the nine months ended September 30, 2016 was $131,000, which is recognized in other comprehensive income in the consolidated balance sheet. Purchases of Level 3 securities during the first three quarters of 2016 and 2015 consisted of local municipal issues. During the first nine months of 2016, $5.1 million of Level 3 securities were purchased. There were no sales of Level 3 securities in the first nine months of 2016. Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 investment securities and liabilities. As a result, the unrealized gains and losses for these assets and liabilities presented in the tables above may include changes in fair value that were attributable to both observable and unobservable inputs. Available for sale investment securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities. The Bank estimates the fair value of these bonds based on the present value of expected future cash flows using management’s best estimate of key assumptions, including forecasted interest yield and payment rates, credit quality and a discount rate commensurate with the current market and other risks involved. The Bank also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable Balance at Assets Inputs Inputs (Dollars in thousands) Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans September 30, 2016 $ 5,578 $ — $ — $ 5,578 December 31, 2015 $ 5,585 $ — $ — $ 5,585 Other Real Estate September 30, 2016 $ 483 $ — $ — $ 483 December 31, 2015 $ 31 $ — $ — $ 31 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Bank estimates the fair value of the loans based on the present value of expected future cash flows using management’s estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). The changes in fair value consisted of charge-downs of impaired loans that were posted to the allowance for loan losses and write-downs of other real estate that were posted to a valuation account.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2016 and September 30, 2015, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2016 and September 30, 2015, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2016 and September 30, 2015, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2016 and September 30, 2015. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2015.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income.
Stock Transactions	Stock Transactions A total of 4,112 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $95,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2016. A total of 4,793 shares of common stock were issued upon the exercise of stock options in the first three quarters of 2016. A total of 2,654 shares of common stock were issued to employees for a cash price of $51,000 under the Employee Stock Purchase Plan in the first nine months of 2016. A total of 3,414 shares of common stock were issued to employees upon vesting of Restricted Stock Units during the first three quarters of 2016. A total of 35,000 shares of common stock were repurchased by ChoiceOne in the first nine months of 2016.
Stock-Based Compensation	Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by issuance of one share of ChoiceOne common stock.

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of fair value of securities available for sale	The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: September 30, 2016 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 64,440 $ 381 $ (17 ) $ 64,804 U.S. Treasury 2,074 43 (1 ) 2,116 State and municipal 87,661 2,878 (25 ) 90,514 Mortgage-backed 8,511 62 (14 ) 8,559 Corporate 7,370 64 (1 ) 7,433 Foreign debt 1,000 2 — 1,002 Equity securities 2,614 204 — 2,818 Asset-backed securities 202 — (4 ) 198 Total $ 173,872 $ 3,634 $ (62 ) $ 177,444 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 57,406 $ 30 $ (229 ) $ 57,207 U.S. Treasury 6,133 0 (33 ) 6,100 State and municipal 76,005 1,858 (109 ) 77,754 Mortgage-backed 6,989 26 (45 ) 6,970 Corporate 8,418 8 (39 ) 8,387 Foreign debt 1,000 — (5 ) 995 Equity securities 2,279 174 — 2,453 Asset-backed securities 274 — (4 ) 270 Total $ 158,504 $ 2,096 $ (464 ) $ 160,136
Schedule of expected maturities of available for sale securities	Contractual maturities of securities available for sale at September 30, 2016 were as follows: (Dollars in thousands) Fair Value Due within one year $ 31,758 Due after one year through five years 95,744 Due after five years through ten years 44,022 Due after ten years 3,103 Total debt securities 174,627 Equity securities 2,817 Total $ 177,444
Schedule of securities in a continuous unrealized loss position	Securities with unrealized losses at September 30, 2016 and year-end 2015, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, were as follows: September 30, 2016 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 7,551 $ (18 ) $ — $ — $ 7,551 $ (18 ) State and municipal 3,506 (19 ) 260 (5 ) 3,766 (24 ) Mortgage-backed 2,827 (12 ) 280 (1 ) 3,107 (13 ) Corporate 501 (1 ) 399 (1 ) 900 (2 ) Asset-backed securities — — 198 (5 ) 198 (5 ) Total temporarily impaired $ 14,385 $ (50 ) $ 1,137 $ (12 ) $ 15,522 $ (62 ) December 31, 2015 Less than 12 months More than 12 months Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government and federal agency $ 38,567 $ (216 ) $ 986 $ (13 ) $ 39,553 $ (229 ) U.S. Treasury notes and bonds 6,101 (33 ) — — 6,101 (33 ) State and municipal 10,382 (69 ) 2,906 (40 ) 13,288 (109 ) Mortgage-backed 4,459 (41 ) 382 (4 ) 4,841 (45 ) Corporate 4,284 (33 ) 896 (6 ) 5,180 (39 ) Foreign debt 995 (5 ) — — 995 (5 ) Asset-backed securities — — 270 (4 ) 270 (4 ) Total temporarily impaired $ 64,788 $ (397 ) $ 5,440 $ (67 ) $ 70,228 $ (464 )

LOANS AND ALLOWANCE FOR LOAN 18

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Schedule of activity in the allowance for loan losses and balances in the loan portfolio	Activity in the allowance for loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Agricultural Commercial Consumer Commercial Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2016 Beginning balance $ 399 $ 656 $ 279 $ 1,133 $ 44 $ 1,222 $ 563 $ 4,296 Charge-offs — — (68 ) — — (25 ) — (93 ) Recoveries — 8 49 5 — 11 — 73 Provision (11 ) (55 ) 30 340 (3 ) (205 ) (96 ) — Ending balance $ 388 $ 609 $ 290 $ 1,478 $ 41 $ 1,003 $ 467 $ 4,276 Nine Months Ended September 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (136 ) — — (94 ) — (263 ) Recoveries — 31 119 35 — 160 — 345 Provision (32 ) 26 10 412 (5 ) (451 ) 40 — Ending balance $ 388 $ 610 $ 290 $ 1,477 $ 41 $ 1,003 $ 467 $ 4,276 Individually evaluated for impairment $ 4 $ 8 $ 1 $ 167 $ — $ 321 $ — $ 501 Collectively evaluated for impairment $ 384 $ 602 $ 289 $ 1,310 $ 41 $ 682 $ 467 $ 3,775 Three Months Ended September 30, 2015 Beginning balance $ 279 $ 498 $ 193 $ 1,284 $ 28 $ 1,375 $ 695 $ 4,352 Charge-offs — — (65 ) — — (25 ) — (90 ) Recoveries — 11 25 15 — 4 — 55 Provision 10 (14 ) 57 (179 ) 15 (2 ) 113 — Ending balance $ 289 $ 495 $ 210 $ 1,120 $ 43 $ 1,352 $ 808 $ 4,317 Nine Months Ended September 30, 2015 Beginning balance $ 187 $ 527 $ 183 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs — — (172 ) — — (46 ) — (218 ) Recoveries 1 59 104 36 — 62 — 262 Provision 101 (91 ) 95 (557 ) 34 143 375 100 Ending balance $ 289 $ 495 $ 210 $ 1,120 $ 43 $ 1,352 $ 808 $ 4,317 Individually evaluated for impairment $ 3 $ 1 $ 29 $ 296 $ — $ 355 $ — $ 684 Collectively evaluated for impairment $ 286 $ 494 $ 181 $ 824 $ 43 $ 997 $ 808 $ 3,633 Loans September 30, 2016 Individually evaluated for impairment $ 534 $ 450 $ 26 $ 1,459 $ — $ 3,109 $ 5,578 Collectively evaluated for impairment 37,744 95,221 21,427 107,608 6,027 88,998 357,025 Ending balance $ 38,278 $ 95,671 $ 21,453 $ 109,067 $ 6,027 $ 92,107 $ 362,603 December 31, 2015 Individually evaluated for impairment $ 50 $ 192 $ 24 $ 2,790 $ — $ 2,529 $ 5,585 Collectively evaluated for impairment 40,182 94,155 20,066 94,946 5,390 88,980 343,719 Ending balance $ 40,232 $ 94,347 $ 20,090 $ 97,736 $ 5,390 $ 91,509 $ 349,304
Schedule of the bank's credit exposure	Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category: Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 8,072 $ 10,416 $ 11,672 $ 10,480 $ 7,305 $ 3,875 Risk rating 3 21,626 25,189 63,450 66,921 57,355 57,540 Risk rating 4 7,269 3,086 19,242 16,169 40,692 29,826 Risk rating 5 1,267 1,491 1,227 574 3,153 3,776 Risk rating 6 44 50 80 129 562 2,719 Risk rating 7 — — — 74 — — $ 38,278 $ 40,232 $ 95,671 $ 94,347 $ 109,067 $ 97,736 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity: Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 Performing $ 21,448 $ 20,090 $ 6,027 $ 5,390 $ 91,317 $ 90,796 Nonperforming 5 — — — 336 282 Nonaccrual — — — — 454 431 $ 21,453 $ 20,090 $ 6,027 $ 5,390 $ 92,107 $ 91,509
Schedule of troubled debt restructurings	The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2016: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Agricultural — $ — $ — 1 $ 113 $ 113 Residential real estate — — — 2 156 156 — $ — $ — 3 $ 269 $ 269 The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2015: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial real estate — $ — $ — 4 $ 448 $ 448 Residential real estate 1 85 85 2 193 193 1 $ 85 $ 85 6 $ 641 $ 641 The following schedule provides information on TDRs as of September 30, 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2016 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural — $ — 1 $ 113 The following schedule provides information on TDRs as of September 30, 2015 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2015 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate 2 $ 293 3 $ 409
Schedule of impaired loans	Impaired loans by loan category follow: (Dollars in thousands) Recorded Principal Related Investment Balance Allowance September 30, 2016 With no related allowance recorded Agricultural $ 489 $ 493 $ — Commercial and industrial 177 177 — Consumer 5 5 — Commercial real estate 230 351 — Residential real estate 266 266 — Subtotal 1,167 1,292 — With an allowance recorded Agricultural 45 45 4 Commercial and industrial 273 247 8 Consumer 21 21 1 Commercial real estate 1,229 1,799 167 Residential real estate 2,843 2,859 321 Subtotal 4,411 4,971 501 Total Agricultural 534 538 4 Commercial and industrial 450 424 8 Consumer 26 26 1 Commercial real estate 1,459 2,150 167 Residential real estate 3,109 3,125 321 Total $ 5,578 $ 6,263 $ 501 December 31, 2015 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 74 103 — Consumer — — — Commercial real estate 1,540 1,540 — Residential real estate 13 13 — Subtotal 1,627 1,656 — With an allowance recorded Agricultural 50 50 3 Commercial and industrial 118 118 15 Consumer 24 24 1 Commercial real estate 1,250 1,755 191 Residential real estate 2,516 2,516 296 Subtotal 3,958 4,463 506 Total Agricultural 50 50 3 Commercial and industrial 192 221 15 Consumer 24 24 1 Commercial real estate 2,790 3,295 191 Residential real estate 2,529 2,529 296 Total $ 5,585 $ 6,119 $ 506 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the nine months ended September 30, 2016 and 2015: Average Interest (Dollars in thousands) Recorded Income Investment Recognized September 30, 2016 With no related allowance recorded Agricultural $ 154 $ (1 ) Commercial and industrial 63 — Consumer 1 — Commercial real estate 1,071 33 Residential real estate 134 46 Subtotal 1,423 78 With an allowance recorded Agricultural 79 16 Commercial and industrial 242 4 Consumer 22 3 Commercial real estate 1,426 116 Residential real estate 2,670 308 Subtotal 4,439 447 Total Agricultural 233 15 Commercial and industrial 305 4 Consumer 23 3 Commercial real estate 2,497 149 Residential real estate 2,804 354 Total $ 5,862 $ 525 September 30, 2015 With no related allowance recorded Agricultural $ — $ — Commercial and industrial 13 — Consumer 2 — Commercial real estate 941 23 Residential real estate 236 (1 ) Subtotal 1,192 22 With an allowance recorded Agricultural 65 (6 ) Commercial and industrial 26 1 Consumer 37 2 Commercial real estate 2,190 53 Residential real estate 2,402 64 Subtotal 4,720 114 Total Agricultural 65 (6 ) Commercial and industrial 39 1 Consumer 39 2 Commercial real estate 3,131 76 Residential real estate 2,638 63 Total $ 5,912 $ 136
Schedule of aging analysis of loans by loan category	An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing September 30, 2016 Agricultural $ — $ — $ 113 $ 113 $ 38,165 $ 38,278 $ — Commercial and industrial 97 — 249 346 95,325 95,671 — Consumer 40 6 5 51 21,402 21,453 5 Commercial real estate — 256 260 516 108,551 109,067 — Construction real estate — — — — 6,027 6,027 — Residential real estate 230 614 487 1,331 90,776 92,107 346 $ 367 $ 876 $ 1,114 $ 2,357 $ 360,246 $ 362,603 $ 351 December 31, 2015 Agricultural $ 3 $ — $ — $ 3 $ 40,229 $ 40,232 $ — Commercial and industrial 90 322 77 489 93,858 94,347 — Consumer 115 — — 115 19,975 20,090 — Commercial real estate 505 297 1,233 2,035 95,701 97,736 — Construction real estate 299 — — 299 5,091 5,390 — Residential real estate 1,012 364 200 1,576 89,933 91,509 29 $ 2,024 $ 983 $ 1,510 $ 4,517 $ 344,787 $ 349,304 $ 29 (1) Includes nonaccrual loans.
Schedule of nonaccrual loans by loan category	Nonaccrual loans by loan category follow: (Dollars in thousands) September 30, December 31, 2016 2015 Agricultural $ 489 $ 50 Commercial and industrial 320 77 Consumer — — Commercial real estate 471 1,640 Construction real estate — — Residential real estate 455 431 $ 1,735 $ 2,198

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of basic earnings per share and diluted earnings per share	Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) September 30, September 30, 2016 2015 2016 2015 Basic Earnings Per Share Net income available to common shareholders $ 1,683 $ 1,450 $ 4,402 $ 4,523 Weighted average common shares outstanding 3,275,841 3,289,146 3,290,610 3,287,765 Basic earnings per share $ 0.52 $ 0.44 $ 1.34 $ 1.37 Diluted Earnings Per Share Net income available to common shareholders $ 1,683 $ 1,450 $ 4,402 $ 4,523 Weighted average common shares outstanding 3,275,841 3,289,146 3,290,610 3,287,765 Plus dilutive stock options and restricted stock units 3,949 6,686 4,171 6,841 Weighted average common shares outstanding and potentially dilutive shares 3,279,790 3,295,832 3,294,781 3,294,606 Diluted earnings per share $ 0.52 $ 0.44 $ 1.34 $ 1.37

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of carrying value and fair value of financial assets and liabilities	Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) September 30, 2016 Assets: Cash and due from banks $ 12,644 $ 12,644 $ 12,644 $ — $ — Securities available for sale 177,444 177,444 1,318 161,598 14,528 Federal Home Loan Bank and Federal Reserve Bank stock 3,252 3,252 — 3,252 — Loans held for sale 2,838 2,639 — — 2,639 Loans, net 358,327 345,497 — — 345,497 Liabilities: Noninterest-bearing deposits 123,609 123,609 — 123,609 — Interest-bearing deposits 353,778 353,842 — 353,842 — Federal funds purchased 624 624 — 624 — Repurchase agreements 6,417 6,417 — 6,417 — Federal Home Loan Bank advances 37,309 37,309 — 37,309 — December 31, 2015 Assets: Cash and due from banks $ 11,187 $ 11,187 $ 11,187 $ — $ — Securities available for sale 160,136 160,136 953 147,384 11,799 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 — 3,187 — Loans held for sale 4,957 5,109 — 5,109 — Loans, net 345,110 349,875 — — 349,875 Liabilities: Noninterest-bearing deposits 122,937 122,937 — 122,937 — Interest-bearing deposits 351,759 353,113 — 353,113 — Repurchase agreements 9,460 9,460 — 9,460 — Federal Home Loan Bank advances 11,332 12,028 — 12,028 —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) September 30, 2016 Assets: Cash and due from banks $ 12,644 $ 12,644 $ 12,644 $ — $ — Securities available for sale 177,444 177,444 1,318 161,598 14,528 Federal Home Loan Bank and Federal Reserve Bank stock 3,252 3,252 — 3,252 — Loans held for sale 2,838 2,828 — — 2,828 Loans, net 358,327 362,465 — — 362,465 Liabilities: Noninterest-bearing deposits 123,609 123,609 — 123,609 — Interest-bearing deposits 353,778 353,470 — 353,470 — Federal funds purchased 624 624 — 624 — Repurchase agreements 6,417 6,417 — 6,417 — Federal Home Loan Bank advances 37,309 37,283 — 37,283 — December 31, 2015 Assets: Cash and due from banks $ 11,187 $ 11,187 $ 11,187 $ — $ — Securities available for sale 160,136 160,136 953 147,384 11,799 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 — 3,187 — Loans held for sale 4,957 5,109 — 5,109 — Loans, net 345,110 349,875 — — 349,875 Liabilities: Noninterest-bearing deposits 122,937 122,937 — 122,937 — Interest-bearing deposits 351,759 353,113 — 353,113 — Repurchase agreements 9,460 9,460 — 9,460 — Federal Home Loan Bank advances 11,332 12,028 — 12,028 —
Schedule of changes in Level 3 assets measured at fair value on a recurring basis	Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2016 2015 Investment Securities, Available for Sale Balance, January 1 $ 11,799 $ 11,642 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income 131 946 Net purchases, sales, calls, and maturities 2,598 (2,075 ) Net transfers into Level 3 — — Balance, September 30 $ 14,528 $ 10,513
Schedule of assets measured at fair value on a nonrecurring basis	Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable Balance at Assets Inputs Inputs (Dollars in thousands) Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans September 30, 2016 $ 5,578 $ — $ — $ 5,578 December 31, 2015 $ 5,585 $ — $ — $ 5,585 Other Real Estate September 30, 2016 $ 483 $ — $ — $ 483 December 31, 2015 $ 31 $ — $ — $ 31

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Shares issued during period under Employee Stock Purchase Plan, shares	2,654
Shares issued during period under Employee Stock Purchase Plan, value	$ 51
Common Stock and Paid In Capital [Member]
Shares repurchased (in shares)	35,000	16,200
Stock Options [Member]
Shares issued upon exercise of options	4,793
Restricted stock [Member]
Shares issued during the period upon vesting	3,414
Vesting period	3 years
Directors' Stock Purchase Plan [Member]
Shares issued during the period, shares	4,112
Shares issued during the period, value	$ 95

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 173,872	$ 158,504
Gross Unrealized Gains	3,634	2,096
Gross Unrealized Losses	(62)	(464)
Fair Value	177,444	160,136
U.S. Government and federal agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	64,440	57,406
Gross Unrealized Gains	381	30
Gross Unrealized Losses	(17)	(229)
Fair Value	64,804	57,207
U.S. Treasury notes and bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,074	6,133
Gross Unrealized Gains	43	0
Gross Unrealized Losses	(1)	(33)
Fair Value	2,116	6,100
State and municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	87,661	76,005
Gross Unrealized Gains	2,878	1,858
Gross Unrealized Losses	(25)	(109)
Fair Value	90,514	77,754
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,511	6,989
Gross Unrealized Gains	62	26
Gross Unrealized Losses	(14)	(45)
Fair Value	8,559	6,970
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,370	8,418
Gross Unrealized Gains	64	8
Gross Unrealized Losses	(1)	(39)
Fair Value	7,433	8,387
Foreign debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,000	1,000
Gross Unrealized Gains	2
Gross Unrealized Losses		(5)
Fair Value	1,002	995
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,614	2,279
Gross Unrealized Gains	204	174
Fair Value	2,818	2,453
Asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	202	274
Gross Unrealized Losses	(4)	(4)
Fair Value	$ 198	$ 270

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Available for Sale Securities, Fair Values
Due within one year	$ 31,758
Due after one year through five years	95,744
Due after five years through ten years	44,022
Due after ten years	3,103
Total debt securities	174,627
Equity securities	2,817
Total	$ 177,444	$ 160,136

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Securities with unrealized loss position
Less than 12 Months, Fair Value	$ 14,385	$ 64,788
Less than 12 Months, Unrealized Losses	(50)	(397)
12 Months or More, Fair Value	1,137	5,440
12 Months or More, Unrealized Losses	(12)	(67)
Total, Fair Value	15,522	70,228
Total, Unrealized Losses	(62)	(464)
Foreign Debt [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value		995
Less than 12 Months, Unrealized Losses		(5)
Total, Fair Value		995
Total, Unrealized Losses		(5)
Asset-backed securities [Member]
Securities with unrealized loss position
12 Months or More, Fair Value	198	270
12 Months or More, Unrealized Losses	(5)	(4)
Total, Fair Value	198	270
Total, Unrealized Losses	(5)	(4)
U.S. Government and federal agency [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value	7,551	38,576
Less than 12 Months, Unrealized Losses	(18)	(216)
12 Months or More, Fair Value		986
12 Months or More, Unrealized Losses		(13)
Total, Fair Value	7,551	39,553
Total, Unrealized Losses	(18)	(229)
U.S. Treasury notes and bonds [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value		6,101
Less than 12 Months, Unrealized Losses		(33)
Total, Fair Value		6,101
Total, Unrealized Losses		(33)
State and municipal [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value	3,506	10,382
Less than 12 Months, Unrealized Losses	(19)	(69)
12 Months or More, Fair Value	260	2,906
12 Months or More, Unrealized Losses	(5)	(40)
Total, Fair Value	3,766	13,288
Total, Unrealized Losses	(24)	(109)
Mortgage-backed [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value	2,827	4,459
Less than 12 Months, Unrealized Losses	(12)	(41)
12 Months or More, Fair Value	280	382
12 Months or More, Unrealized Losses	(1)	(4)
Total, Fair Value	3,107	4,841
Total, Unrealized Losses	(13)	(45)
Corporate [Member]
Securities with unrealized loss position
Less than 12 Months, Fair Value	501	4,284
Less than 12 Months, Unrealized Losses	(1)	(33)
12 Months or More, Fair Value	399	896
12 Months or More, Unrealized Losses	(1)	(6)
Total, Fair Value	900	5,180
Total, Unrealized Losses	$ (2)	$ (39)

LOANS AND ALLOWANCE FOR LOAN 26

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Allowance for Loan Losses
Beginning balance	$ 4,296	$ 4,352	$ 4,194	$ 4,173
Charge-offs	(93)	(90)	(263)	(218)
Recoveries	73	55	345	262
Provision				100
Ending balance	4,276	4,317	4,276	4,317
Individually evaluated for impairment	501	684	501	684
Collectively evaluated for impairment	3,775	3,633	3,775	3,633
Loans
Individually evaluated for impairment					$ 5,585
Collectively evaluated for impairment					343,719
Loans	362,603		362,603		349,304
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	399	279	420	187
Recoveries				1
Provision	(11)	10	(32)	101
Ending balance	388	289	388	289
Individually evaluated for impairment	4	3	4	3
Collectively evaluated for impairment	384	286	384	286
Loans
Individually evaluated for impairment	534		534		50
Collectively evaluated for impairment	37,744		37,744		40,182
Loans	38,278		38,278		40,232
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	656	498	586	527
Charge-offs			(33)
Recoveries	8	11	31	59
Provision	(55)	(14)	26	(91)
Ending balance	610	495	610	495
Individually evaluated for impairment	8	1	8	1
Collectively evaluated for impairment	602	494	602	494
Loans
Individually evaluated for impairment	450		450		192
Collectively evaluated for impairment	95,221		95,221		94,155
Loans	95,671		95,671		94,347
Consumer [Member]
Allowance for Loan Losses
Beginning balance	279	193	297	183
Charge-offs	(68)	(65)	(136)	(172)
Recoveries	49	25	119	104
Provision	30	57	10	95
Ending balance	290	210	290	210
Individually evaluated for impairment	1	29	1	29
Collectively evaluated for impairment	289	181	289	181
Loans
Individually evaluated for impairment	26		26		24
Collectively evaluated for impairment	21,427		21,427		20,066
Loans	21,453		21,453		20,090
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,133	1,284	1,030	1,641
Recoveries	5	15	35	36
Provision	340	(179)	412	(557)
Ending balance	1,477	1,120	1,477	1,120
Individually evaluated for impairment	167	296	167	296
Collectively evaluated for impairment	1,310	824	1,310	824
Loans
Individually evaluated for impairment	1,459		1,459		2,790
Collectively evaluated for impairment	107,608		107,608		94,946
Loans	109,067		109,067		97,736
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	44	28	46	9
Provision	(3)	15	(5)	34
Ending balance	41	43	41	43
Collectively evaluated for impairment	41	43	41	43
Loans
Collectively evaluated for impairment	6,027		6,027		5,390
Loans	6,027		6,027		5,390
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,222	1,375	1,388	1,193
Charge-offs	(25)	(25)	(94)	(46)
Recoveries	11	4	160	62
Provision	(205)	(2)	(451)	143
Ending balance	1,003	1,352	1,003	1,352
Individually evaluated for impairment	321	355	321	355
Collectively evaluated for impairment	682	997	682	997
Loans
Individually evaluated for impairment	3,109		3,109		2,529
Collectively evaluated for impairment	88,998		88,998		88,980
Loans	92,107		92,107		$ 91,509
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	563	695	427	433
Provision	(96)	113	40	375
Ending balance	467	808	467	808
Collectively evaluated for impairment	$ 467	$ 808	$ 467	$ 808

LOANS AND ALLOWANCE FOR LOAN 27

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 362,603	$ 349,304
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	38,278	40,232
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	8,072	10,416
Agricultural [Member] | Risk ratings 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	21,626	25,189
Agricultural [Member] | Risk ratings 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,269	3,086
Agricultural [Member] | Risk ratings 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,267	1,491
Agricultural [Member] | Risk ratings 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	44	50
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	95,671	94,347
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	11,672	10,480
Commercial and Industrial [Member] | Risk ratings 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	63,450	66,921
Commercial and Industrial [Member] | Risk ratings 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	19,242	16,169
Commercial and Industrial [Member] | Risk ratings 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,227	574
Commercial and Industrial [Member] | Risk ratings 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	80	129
Commercial and Industrial [Member] | Risk ratings 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans		74
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	109,067	97,736
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,305	3,875
Commercial Real Estate [Member] | Risk ratings 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	57,355	57,540
Commercial Real Estate [Member] | Risk ratings 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	40,692	29,826
Commercial Real Estate [Member] | Risk ratings 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	3,153	3,776
Commercial Real Estate [Member] | Risk ratings 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 562	$ 2,719

LOANS AND ALLOWANCE FOR LOAN 28

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 362,603	$ 349,304
Nonaccrual past due loans	1,735	2,198
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	21,453	20,090
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	21,448	20,090
Consumer [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	5
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	6,027	5,390
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	6,027	5,390
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	92,107	91,509
Nonaccrual past due loans	455	431
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	91,317	90,796
Residential Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 336	$ 282

LOANS AND ALLOWANCE FOR LOAN 29

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)Number	Sep. 30, 2016USD ($)Number	Sep. 30, 2015USD ($)Number
Financing Receivable, Modifications [Line Items]
Number of contracts | Number	1	3	6
Pre-Modification Outstanding Recorded Investment	$ 85	$ 269	$ 641
Post Modification Oustanding Recorded Investment	$ 85	$ 269	$ 641
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | Number			4
Pre-Modification Outstanding Recorded Investment			$ 448
Post Modification Oustanding Recorded Investment			$ 448
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | Number	1	2	2
Pre-Modification Outstanding Recorded Investment	$ 85	$ 156	$ 193
Post Modification Oustanding Recorded Investment	$ 85	$ 156	$ 193
Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | Number		1
Pre-Modification Outstanding Recorded Investment		$ 113
Post Modification Oustanding Recorded Investment		$ 113

LOANS AND ALLOWANCE FOR LOAN 30

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)Number	Sep. 30, 2016USD ($)Number	Sep. 30, 2015USD ($)Number
Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Number		1
Recorded Investment | $		$ 113
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Number	2		3
Recorded Investment | $	$ 293		$ 409

LOANS AND ALLOWANCE FOR LOAN 31

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment With no related allowance recorded	$ 1,167		$ 1,627
Unpaid Principal Balance With no related allowance recorded	1,292		1,656
Average Recorded Investment With no related allowance recorded	1,423	$ 1,192
Interest Income Recognized With no related allowance recorded	78	22
Recorded Investment With an allowance recorded	4,411		3,958
Unpaid Principal Balance With an allowance recorded	4,971		4,463
Related Allowance	501		506
Average Recorded Investment With an allowance recorded	4,439	4,720
Interest Income Recognized With an allowance recorded	447	114
Recorded Investment	5,578		5,585
Unpaid Principal Balance	6,263		6,119
Average Recorded Investment	5,862	5,912
Interest Income Recognized	525	136
Agricultural [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment With no related allowance recorded	489
Unpaid Principal Balance With no related allowance recorded	493
Average Recorded Investment With no related allowance recorded	154
Interest Income Recognized With no related allowance recorded	(1)
Recorded Investment With an allowance recorded	45		50
Unpaid Principal Balance With an allowance recorded	45		50
Related Allowance	4		3
Average Recorded Investment With an allowance recorded	79	65
Interest Income Recognized With an allowance recorded	16	(6)
Recorded Investment	534		50
Unpaid Principal Balance	538		50
Average Recorded Investment	233	65
Interest Income Recognized	15	(6)
Commercial and Industrial [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment With no related allowance recorded	177		74
Unpaid Principal Balance With no related allowance recorded	177		103
Average Recorded Investment With no related allowance recorded	63	13
Interest Income Recognized With no related allowance recorded
Recorded Investment With an allowance recorded	273		118
Unpaid Principal Balance With an allowance recorded	247		118
Related Allowance	8		15
Average Recorded Investment With an allowance recorded	242	26
Interest Income Recognized With an allowance recorded	4	1
Recorded Investment	450		192
Unpaid Principal Balance	424		221
Average Recorded Investment	305	39
Interest Income Recognized	4	1
Consumer [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment With no related allowance recorded	5
Unpaid Principal Balance With no related allowance recorded	5
Average Recorded Investment With no related allowance recorded	1	2
Interest Income Recognized With no related allowance recorded
Recorded Investment With an allowance recorded	21		24
Unpaid Principal Balance With an allowance recorded	21		24
Related Allowance	1		1
Average Recorded Investment With an allowance recorded	22	37
Interest Income Recognized With an allowance recorded	3	2
Recorded Investment	26		24
Unpaid Principal Balance	26		24
Average Recorded Investment	23	39
Interest Income Recognized	3	2
Commercial Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment With no related allowance recorded	230		1,540
Unpaid Principal Balance With no related allowance recorded	351		1,540
Average Recorded Investment With no related allowance recorded	1,071	941
Interest Income Recognized With no related allowance recorded	33	23
Recorded Investment With an allowance recorded	1,229		1,250
Unpaid Principal Balance With an allowance recorded	1,799		1,755
Related Allowance	167		191
Average Recorded Investment With an allowance recorded	1,426	2,190
Interest Income Recognized With an allowance recorded	116	53
Recorded Investment	1,459		2,790
Unpaid Principal Balance	2,150		3,295
Average Recorded Investment	2,497	3,131
Interest Income Recognized	149	76
Residential Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment With no related allowance recorded	266		13
Unpaid Principal Balance With no related allowance recorded	266		13
Average Recorded Investment With no related allowance recorded	134	236
Interest Income Recognized With no related allowance recorded	46	(1)
Recorded Investment With an allowance recorded	2,843		2,516
Unpaid Principal Balance With an allowance recorded	2,859		2,516
Related Allowance	321		296
Average Recorded Investment With an allowance recorded	2,670	2,402
Interest Income Recognized With an allowance recorded	308	64
Recorded Investment	3,109		2,529
Unpaid Principal Balance	3,125		$ 2,529
Average Recorded Investment	2,804	2,638
Interest Income Recognized	$ 354	$ 63

LOANS AND ALLOWANCE FOR LOAN 32

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 2,357	$ 4,517
Loans Not Past Due		360,246	344,787
Loans		362,603	349,304
90 Days Past Due and Accruing		351	29
30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		367	2,024
60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		876	983
Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	1,114	1,510
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		113	3
Loans Not Past Due		38,165	40,229
Loans		38,278	40,232
Agricultural [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total			3
Agricultural [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	113
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		346	489
Loans Not Past Due		95,325	93,858
Loans		95,671	94,347
Commercial and Industrial [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		97	90
Commercial and Industrial [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total			322
Commercial and Industrial [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	249	77
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		51	115
Loans Not Past Due		21,402	19,975
Loans		21,453	20,090
90 Days Past Due and Accruing		5
Consumer [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		40	115
Consumer [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		6
Consumer [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	5
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		516	2,035
Loans Not Past Due		108,551	95,701
Loans		109,067	97,736
Commercial Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total			505
Commercial Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		256	297
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	260	1,233
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total			299
Loans Not Past Due		6,027	5,091
Loans		6,027	5,390
Construction Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total			299
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,131	1,576
Loans Not Past Due		90,776	89,933
Loans		92,107	91,509
90 Days Past Due and Accruing		346	29
Residential Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		230	1,012
Residential Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		614	364
Residential Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	$ 487	$ 200
[1]	Includes nonaccrual loans

LOANS AND ALLOWANCE FOR LOAN 33

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 1,735	$ 2,198
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	489	50
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	320	77
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	471	1,640
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 455	$ 431

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic Earnings Per Share
Net income available to common shareholders	$ 1,683	$ 1,450	$ 4,402	$ 4,523
Weighted average common shares outstanding	3,275,841	3,289,146	3,290,610	3,287,765
Basic earnings per share	$ 0.52	$ 0.44	$ 1.34	$ 1.37
Diluted Earnings Per Share
Plus dilutive stock options and restricted stock units	3,949	6,686	4,171	6,841
Weighted average common shares outstanding and potentially dilutive shares	3,279,790	3,295,832	3,294,781	3,294,606
Diluted earnings per share	$ 0.52	$ 0.44	$ 1.34	$ 1.37

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Stock options considered to be anti-dilutive to earnings per share	30,000	0

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets:
Securities available for sale	$ 177,444	$ 160,136
Liabilities:
Noninterest-bearing deposits	123,609	122,937
Interest-bearing deposits	353,778	351,759
Federal funds purchased	624
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Cash and due from banks	12,644	11,187
Securities available for sale	1,318	953
Federal Home Loan Bank and Federal Reserve Bank stock
Loans held for sale
Loans, net
Liabilities:
Noninterest-bearing deposits
Interest-bearing deposits
Federal funds purchased
Repurchase agreements
Federal Home Loan Bank advances
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Cash and due from banks
Securities available for sale	161,598	147,384
Federal Home Loan Bank and Federal Reserve Bank stock	3,252	3,187
Loans held for sale		5,109
Loans, net
Liabilities:
Noninterest-bearing deposits	123,609	122,937
Interest-bearing deposits	353,470	353,113
Federal funds purchased	624
Repurchase agreements	6,417	9,460
Federal Home Loan Bank advances	37,283	12,028
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Cash and due from banks
Securities available for sale	14,528	11,799
Federal Home Loan Bank and Federal Reserve Bank stock
Loans held for sale	2,828
Loans, net	362,465	349,875
Liabilities:
Noninterest-bearing deposits
Interest-bearing deposits
Federal funds purchased
Repurchase agreements
Federal Home Loan Bank advances
Carrying Amount [Member]
Assets:
Cash and due from banks	12,644	11,187
Securities available for sale	177,444	160,136
Federal Home Loan Bank and Federal Reserve Bank stock	3,252	3,187
Loans held for sale	2,838	4,957
Loans, net	358,327	345,110
Liabilities:
Noninterest-bearing deposits	123,609	122,937
Interest-bearing deposits	353,778	351,759
Federal funds purchased	624
Repurchase agreements	6,417	9,460
Federal Home Loan Bank advances	37,309	11,332
Estimated Fair Value [Member]
Assets:
Cash and due from banks	12,644	11,187
Securities available for sale	177,444	160,136
Federal Home Loan Bank and Federal Reserve Bank stock	3,252	3,187
Loans held for sale	2,828	5,109
Loans, net	362,465	349,875
Liabilities:
Noninterest-bearing deposits	123,609	122,937
Interest-bearing deposits	353,470	353,113
Federal funds purchased	624
Repurchase agreements	6,417	9,460
Federal Home Loan Bank advances	$ 37,283	$ 12,028

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 177,444	$ 160,136
Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,818	2,453
U.S. Treasury notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,116	6,100
U.S. Government and federal agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	64,804	57,207
State and municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	90,514	77,754
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,559	6,970
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,433	8,387
Foreign debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,002	995
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	198	270
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,318	953
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	161,598	147,384
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	14,528	11,799
Fair Value Measured on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	177,444	160,136
Fair Value Measured on a Recurring Basis [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,818	2,453
Fair Value Measured on a Recurring Basis [Member] | U.S. Treasury notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,116	6,100
Fair Value Measured on a Recurring Basis [Member] | U.S. Government and federal agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	64,804	57,207
Fair Value Measured on a Recurring Basis [Member] | State and municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	90,514	77,754
Fair Value Measured on a Recurring Basis [Member] | Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,559	6,970
Fair Value Measured on a Recurring Basis [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,433	8,387
Fair Value Measured on a Recurring Basis [Member] | Foreign debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,002	995
Fair Value Measured on a Recurring Basis [Member] | Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	198	270
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,318	953
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,318	953
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	161,598	147,384
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	2,116	6,100
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and federal agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	64,804	57,207
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	77,885	67,852
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,559	6,970
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,034	7,990
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,002	995
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	198	270
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	14,528	11,799
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,500	1,500
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	12,629	9,902
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 399	$ 397

FAIR VALUE MEASUREMENTS (Deta38

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis
Total unrealized gains (losses) included in other comprehensive income	$ 131
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis
Balance at the beginning of period	11,799	$ 11,642
Total unrealized gains (losses) included in other comprehensive income	131	946
Net purchases, sales, calls, and maturities	2,598	(2,075)
Balance at the end of period	$ 14,528	$ 10,513

FAIR VALUE MEASUREMENTS (Deta39

FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 5,578	$ 5,585
Other real estate owned, net	483	31
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	5,578	5,585
Other real estate owned, net	$ 483	$ 31

FAIR VALUE MEASUREMENTS (Deta40

FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Fair Value Disclosures [Abstract]
Total unrealized gains (losses) included in other comprehensive income	$ 131
Level 3 securities purchased	$ 5,100