ChoiceOne Financial Services (COFS) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
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	Mar. 31, 2017
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		3,285,828
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 11,315	$ 14,809
Securities available for sale (Note 2)	180,314	174,388
Federal Home Loan Bank stock	1,994	1,994
Federal Reserve Bank stock	1,573	1,573
Loans held for sale	2,308	1,974
Loans to other financial institutions	3,507
Loans (Note 3)	373,291	369,000
Allowance for loan losses (Note 3)	(4,325)	(4,277)
Loans, net	368,966	364,723
Premises and equipment, net	12,459	12,588
Other real estate owned, net	472	437
Cash value of life insurance policies	14,216	14,117
Goodwill	13,728	13,728
Other assets	6,873	7,040
Total assets	617,726	607,371
Liabilities
Deposits - noninterest-bearing	127,945	127,611
Deposits - interest-bearing	380,422	384,775
Total deposits	508,367	512,386
Repurchase agreements	4,606	7,913
Federal funds purchased	3,873
Advances from Federal Home Loan Bank	24,293	12,301
Other liabilities	3,289	3,073
Total liabilities	544,428	535,673
Shareholders' Equity
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,280,896 at March 31, 2017 and 3,277,944 at December 31, 2016	46,403	46,299
Retained earnings	26,886	25,997
Accumulated other comprehensive income (loss), net	9	(598)
Total shareholders' equity	73,298	71,698
Total liabilities and shareholders' equity	$ 617,726	$ 607,371

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	3,280,896	3,277,944

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income
Loans, including fees	$ 4,164	$ 3,996
Securities:
Taxable	621	553
Tax exempt	361	366
Other	15	6
Total interest income	5,161	4,921
Interest expense
Deposits	248	209
Advances from Federal Home Loan Bank	55	30
Other	3	2
Total interest expense	306	241
Net interest income	4,855	4,680
Provision for loan losses
Net interest income after provision for loan losses	4,855	4,680
Noninterest income
Customer service charges	974	960
Insurance and investment commissions	238	223
Gains on sales of loans	224	419
Gains on sales of securities	66	70
Losses on sales and write-downs of other assets		(23)
Earnings on life insurance policies	99	88
Other	131	106
Total noninterest income	1,732	1,843
Noninterest expense
Salaries and benefits	2,515	2,411
Occupancy and equipment	708	641
Data processing	576	559
Professional fees	229	236
Supplies and postage	101	125
Advertising and promotional	54	43
Intangible amortization		112
Loan and collection expense	6	22
FDIC insurance	54	67
Other	426	581
Total noninterest expense	4,669	4,797
Income before income tax	1,918	1,726
Income tax expense	472	452
Net income	$ 1,446	$ 1,274
Basic earnings per share (Note 4) (in dollars per share)	$ 0.44	$ 0.39
Diluted earnings per share (Note 4) (in dollars per share)	0.44	0.39
Dividends declared per share (in dollars per share)	$ 0.17	$ 0.17

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 1,446	$ 1,274
Other comprehensive income:
Changes in net unrealized gains on investment securities available for sale, net of tax expense of $336 and $365 for the periods ended March 31, 2017 and 2016 respectively	651	709
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $22 and $24 for the periods ended March 31, 2017 and 2016 respectively	(44)	(46)
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) for the periods ended March 31, 2017 and 2016 respectively	0	0
Other comprehensive income, net of tax	607	663
Comprehensive income	$ 2,053	$ 1,937

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Unrealized holding gains on available for sale securities, tax expense (benefit)	$ 336	$ 365
Reclassification adjustment for gain recognized in net income, tax expense (benefit)	$ 22	$ 24

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/(Loss) [Member]	Total
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,274		1,274
Other comprehensive income			663	663
Shares issued	$ 34			34
Shares issued (in shares)	2,288
Change in ESOP repurchase obligation	$ 127			127
Effect of employee stock purchases	8			8
Stock-based compensation expense	39			39
Cash dividends declared		(561)		(561)
Balance, ending at Mar. 31, 2016	$ 46,709	22,851	1,866	71,426
Balance, ending (in shares) at Mar. 31, 2016	3,297,516
Balance, beginning at Dec. 31, 2016	$ 46,299	25,997	(598)	$ 71,698
Balance, beginning (in shares) at Dec. 31, 2016	3,277,944			3,277,944
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,446		$ 1,446
Other comprehensive income			607	607
Shares issued	$ 42			42
Shares issued (in shares)	1,952
Effect of employee stock purchases	$ 3			3
Stock options exercised	$ 13			13
Stock options exercised (in shares)	1,000
Stock-based compensation expense	$ 46			46
Cash dividends declared		(557)		(557)
Balance, ending at Mar. 31, 2017	$ 46,403	$ 26,886	$ 9	$ 73,298
Balance, ending (in shares) at Mar. 31, 2017	3,280,896			3,280,896

CONSOLIDATED STATEMENTS OF CHA8

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Stockholders' Equity [Abstract]
Cash dividend declared, per share	$ 0.17	$ 0.17

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 1,446	$ 1,274
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	320	258
Amortization	282	393
Compensation expense on employee and director stock purchases, stock options, and restricted stock units	71	47
Gains on sales of securities	(66)	(70)
Gains on sales of loans	(224)	(419)
Loans originated for sale	(6,629)	(9,128)
Proceeds from loan sales	6,759	12,934
Earnings on bank-owned life insurance	(99)	(88)
Losses on sales of other real estate owned		4
Proceeds from sales of other real estate owned	172	28
Deferred federal income tax benefit	4	47
Net changes in other assets	184	(109)
Net changes in other liabilities	(101)	121
Net cash from operating activities	2,119	5,292
Securities available for sale:
Sales	6,671	2,217
Maturities, prepayments and calls	1,342	5,602
Purchases	(13,184)	(18,060)
Loan originations, payments and loans to financial institutions, net	(8,266)	(2,109)
Additions to premises and equipment	(191)	(173)
Net cash from investing activities	(13,628)	(12,523)
Cash flows from financing activities:
Net change in deposits	(4,019)	5,155
Net change in repurchase agreements	(3,307)	(1,105)
Net change in federal funds purchased	3,873	4,100
Proceeds from Federal Home Loan Bank advances	24,000	92,000
Payments on Federal Home Loan Bank advances	(12,008)	(91,007)
Cash proceeds from the issuance of common stock	33	34
Cash dividends	(557)	(561)
Net cash from financing activities	8,015	8,616
Net change in cash and cash equivalents	(3,494)	1,385
Beginning cash and cash equivalents	14,809	11,187
Ending cash and cash equivalents	11,315	12,572
Supplemental disclosures of cash flow information:
Cash paid for interest	306	$ 240
Loans transferred to other real estate owned	$ 207

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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 consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The 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 March 31, 2017 and December 31, 2016, the Consolidated Statements of Income for the three-month periods ended March 31, 2017 and March 31, 2016, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2017 and March 31, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the three-month periods ended March 31, 2017 and March 31, 2016, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2017 and March 31, 2016. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. 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, 2016. Loans to Other Non-Financial Institutions The Bank entered into an agreement with another financial institution this year to fund mortgage loans. Loans to other non-financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1-4 family first residential mortgages owned by the mortgage banker and held for sale in the secondary market and have been underwritten using secondary market underwriting standards prior to purchasing the participating interest. Once the mortgage banker delivers the loan to the secondary market, the advance is required to be paid off, including the Bank’s participating interest. If the advance (in which the Bank has a participating interest) is outstanding over 90 days, the originating bank has the right to request the participating interest be paid off by the mortgage banker. The participating interests are subject to concentration risk to 7 different mortgage bankers, with the largest creditor outstanding representing 60% of the total at March 31, 2017. Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interest for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At March 31, 2017, there was no participating interest with delinquent payments over 30 days and no participating interest in advances that was over 30 days. Year to date, there have been no losses or charge-offs of participating interest. 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 921 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $22,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2017. A total of 1,000 shares were issued upon the exercise of stock options and 1,031 shares were issued under the Employee Stock Purchase Plan in the first quarter of 2017. 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 delivery of one share of ChoiceOne common stock. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Securities

Securities	3 Months Ended
	Mar. 31, 2017
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: March 31, 2017 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 60,529 $ 41 $ (599 ) $ 59,971 U.S. Treasury 4,104 — (21 ) 4,083 State and municipal 93,547 948 (577 ) 93,918 Mortgage-backed 7,535 24 (115 ) 7,444 Corporate 7,003 18 (26 ) 6,995 Foreign debt 4,513 — (96 ) 4,417 Equity securities 3,067 262 — 3,329 Asset-backed securities 158 — (1 ) 157 Total $ 180,456 $ 1,293 $ (1,435 ) $ 180,314 December 31, 2016 Amortized Gross Gross Fair U.S. Government and federal agency $ 59,864 $ 34 $ (846 ) $ 59,052 U.S. Treasury 4,111 — (39 ) 4,072 State and municipal 89,169 748 (944 ) 88,973 Mortgage-backed 7,925 19 (155 ) 7,789 Corporate 7,069 12 (40 ) 7,041 Foreign debt 4,514 — (114 ) 4,400 Equity securities 2,617 266 — 2,883 Asset-backed securities 182 — (4 ) 178 Total $ 175,451 $ 1,079 $ (2,142 ) $ 174,388 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 in the first quarter of 2017. 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	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (10 ) (80 ) — — (35 ) — (125 ) Recoveries — — 52 112 — 9 — 173 Provision (27 ) 67 9 (136 ) (39 ) (261 ) 387 — Ending balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Individually evaluated for impairment $ 36 $ 25 $ 6 $ 98 $ — $ 276 $ — $ 441 Collectively evaluated for impairment $ 370 $ 720 $ 280 $ 1,316 $ 23 $ 451 $ 724 $ 3,884 December 31, 2016 Individually evaluated for impairment $ 3 $ 11 $ 2 $ 91 $ — $ 296 $ — $ 403 Collectively evaluated for impairment $ 430 $ 677 $ 303 $ 1,347 $ 62 $ 717 $ 338 $ 3,874 Three Months Ended March 31, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (39 ) — — (69 ) — (141 ) Recoveries — 15 42 8 — 7 — 72 Provision (38 ) 123 (28 ) 100 (3 ) 24 (178 ) — Ending balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,125 Individually evaluated for impairment $ 2 $ 9 $ 2 $ 219 $ — $ 343 $ — $ 575 Collectively evaluated for impairment $ 380 $ 682 $ 270 $ 919 $ 43 $ 1,007 $ 249 $ 3,550 Loans March 31, 2017 Individually evaluated for impairment $ 482 $ 495 $ 34 $ 1,141 $ — $ 2,546 $ 4,698 Collectively evaluated for impairment 38,046 100,559 22,324 115,191 5,035 87,438 368,593 Ending balance $ 38,528 $ 101,054 $ 22,358 $ 116,332 $ 5,035 $ 89,984 $ 373,291 December 31, 2016 Individually evaluated for impairment $ 526 $ 301 $ 28 $ 1,073 $ — $ 2,983 $ 4,911 Collectively evaluated for impairment 44,088 95,787 21,568 109,689 6,153 86,804 364,089 Ending balance $ 44,614 $ 96,088 $ 21,596 $ 110,762 $ 6,153 $ 89,787 $ 369,000 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) March 31, December 31, March 31, December 31, March 31, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 10,581 $ 12,005 $ 13,642 $ 12,135 $ 7,880 $ 8,013 Risk rating 3 21,057 23,852 60,523 56,714 66,400 59,343 Risk rating 4 5,647 7,505 25,650 25,895 38,616 39,641 Risk rating 5 761 726 857 1,267 1,795 1,867 Risk rating 6 482 526 382 77 1,641 1,898 Risk rating 7 — — — — — — $ 38,528 $ 44,614 $ 101,054 $ 96,088 $ 116,332 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate March 31, December 31, March 31, December 31, March 31, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 22,345 $ 21,590 $ 5,035 $ 6,153 $ 89,620 $ 88,767 Nonperforming 8 — — — 50 229 Nonaccrual 5 6 — — 314 791 $ 22,358 $ 21,596 $ 5,035 $ 6,153 $ 89,984 $ 89,787 The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2017 and March 31, 2016: March 31, 2017 March 31, 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 Commercial real estate — $ — $ — 1 $ 128 $ 128 Residential real estate — — — 1 30 30 — $ — $ — 2 $ 158 $ 158 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 March 31, 2017 and 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2017 and March 31, 2016 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural 1 $ 105 1 $ 128 Residential real estate 1 126 — — 2 $ 231 1 $ 128 Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2017 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 177 316 — Consumer — — — Commercial real estate 102 205 — Residential real estate — — — Subtotal 279 521 — With an allowance recorded Agricultural 482 486 36 Commercial and industrial 318 179 25 Consumer 34 34 6 Commercial real estate 1,039 1,207 98 Residential real estate 2,546 2,495 276 Subtotal 4,419 4,401 441 Total Agricultural 482 486 36 Commercial and industrial 495 495 25 Consumer 34 34 6 Commercial real estate 1,141 1,412 98 Residential real estate 2,546 2,495 276 Total $ 4,698 $ 4,922 $ 441 December 31, 2016 With no related allowance recorded Agricultural $ 482 $ 485 $ — Commercial and industrial 206 207 — Consumer — — — Commercial real estate 342 939 — Residential real estate 301 292 — Subtotal 1,331 1,923 — With an allowance recorded Agricultural 44 44 3 Commercial and industrial 95 95 11 Consumer 28 28 2 Commercial real estate 731 804 91 Residential real estate 2,682 2,711 296 Subtotal 3,580 3,682 403 Total Agricultural 526 529 3 Commercial and industrial 301 302 11 Consumer 28 28 2 Commercial real estate 1,073 1,743 91 Residential real estate 2,983 3,003 296 Total $ 4,911 $ 5,605 $ 403 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2017 and 2016: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2017 With no related allowance recorded Agricultural $ 241 $ — Commercial and industrial 191 1 Consumer — — Commercial real estate 222 — Residential real estate 151 — Subtotal 805 1 With an allowance recorded Agricultural 263 — Commercial and industrial 207 3 Consumer 31 1 Commercial real estate 885 14 Residential real estate 2,614 26 Subtotal 4,000 44 Total Agricultural 504 — Commercial and industrial 398 4 Consumer 31 1 Commercial real estate 1,107 14 Residential real estate 2,765 26 Total $ 4,805 $ 45 March 31, 2016 With no related allowance recorded Agricultural $ 64 $ 2 Commercial and industrial 37 — Consumer — — Commercial real estate 1,400 4 Residential real estate 49 1 Subtotal 1,550 7 With an allowance recorded Agricultural 49 — Commercial and industrial 214 (3 ) Consumer 23 0 Commercial real estate 1,536 10 Residential real estate 2,545 24 Subtotal 4,367 31 Total Agricultural 113 2 Commercial and industrial 251 (3 ) Consumer 23 0 Commercial real estate 2,936 14 Residential real estate 2,594 25 Total $ 5,917 $ 39 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 March 31, 2017 Agricultural $ — $ — $ 482 $ 482 $ 38,046 $ 38,528 $ — Commercial and industrial — — 235 235 100,819 101,054 — Consumer 92 16 13 121 22,237 22,358 8 Commercial real estate 191 24 — 215 116,117 116,332 — Construction real estate — — — — 5,035 5,035 — Residential real estate 3,070 157 82 3,309 86,675 89,984 50 $ 3,353 $ 197 $ 812 $ 4,362 $ 368,929 $ 373,291 $ 58 December 31, 2016 Agricultural $ — $ — $ — $ — $ 44,614 $ 44,614 $ — Commercial and industrial — 30 245 275 95,813 96,088 — Consumer 99 2 6 107 21,489 21,596 — Commercial real estate — — 260 260 110,502 110,762 — Construction real estate — — — — 6,153 6,153 — Residential real estate 1,027 109 646 1,782 88,005 89,787 229 $ 1,126 $ 141 $ 1,157 $ 2,424 $ 366,576 $ 369,000 $ 229 (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2017 2016 Agricultural $ 482 $ 482 Commercial and industrial 374 245 Consumer 5 6 Commercial real estate 261 458 Construction real estate — — Residential real estate 314 792 $ 1,436 $ 1,983

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
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 (Dollars in thousands, except per share data) March 31, 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,446 $ 1,274 Weighted average common shares outstanding 3,279,001 3,296,238 Basic earnings per share $ 0.44 $ 0.39 Diluted Earnings Per Share Net income available to common shareholders $ 1,446 $ 1,274 Weighted average common shares outstanding 3,279,001 3,296,238 Plus dilutive stock options and restricted stock units 6,232 8,265 Weighted average common shares outstanding and potentially dilutive shares 3,285,233 3,304,503 Diluted earnings per share $ 0.44 $ 0.39 There were 30,000 stock options as of March 31, 2017 and March 31, 2016 that are considered to be anti-dilutive to earnings per share for the three-month periods ended March 31, 2017 and March 31, 2016. These stock options have been excluded from the calculation above.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2017
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) March 31, 2017 Assets: Cash and due from banks $ 11,315 $ 11,315 $ 11,315 $ — $ — Securities available for sale 180,314 180,314 1,829 163,277 15,208 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 2,308 2,390 — — 2,390 Loans to other financial institutions 3,507 3,507 3,507 Loans, net 368,966 369,432 — — 369,432 Liabilities: Noninterest-bearing deposits 127,945 127,945 — 127,945 — Interest-bearing deposits 380,422 379,451 — 379,451 — Repurchase agreements 4,606 4,606 — 4,606 — Federal funds purchased 3,873 3,873 — 3,873 — Federal Home Loan Bank advances 24,293 24,306 — 24,306 — December 31, 2016 Assets: Cash and due from banks $ 14,809 $ 14,809 $ 14,809 $ — $ — Securities available for sale 174,388 174,388 1,383 157,902 15,103 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,974 2,044 — 2,044 — Loans, net 364,723 365,780 — — 365,780 Liabilities: Noninterest-bearing deposits 127,611 127,611 — 127,611 — Interest-bearing deposits 384,775 383,879 — 383,879 — Repurchase agreements 7,913 7,913 — 7,913 — Federal Home Loan Bank advances 12,301 12,323 — 12,323 — 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 March 31, 2017 and December 31, 2016 for new loans with similar maturities, applied until the loan is assumed to reprice or be paid. 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 March 31, 2017 and December 31, 2016 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	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE 6 – FAIR VALUE MEASUREMENTS The following tables present information about assets and liabilities measured at fair value on a recurring basis and the valuation techniques used 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 March 31, 2017 or December 31, 2016. 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 Unobservable Balance at Investment Securities, Available for Sale – March 31, 2017 U.S. Treasury notes and bonds $ — $ 4,083 $ — $ 4,083 U.S. Government and federal agency — 59,971 — 59,971 State and municipal — 80,210 13,708 93,918 Mortgage-backed — 7,444 — 7,444 Corporate — 6,995 — 6,995 Foreign debt — 4,417 — 4,417 Equity securities 1,829 — 1,500 3,329 Asset backed securities — 157 — 157 Total $ 1,829 $ 163,277 $ 15,208 $ 180,314 Investment Securities, Available for Sale - December 31, 2016 U.S. Treasury notes and bonds $ — $ 4,072 $ — $ 4,072 U.S. Government and federal agency — 59,052 — 59,052 State and municipal — 75,370 13,603 88,973 Mortgage-backed — 7,789 — 7,789 Corporate — 7,041 — 7,041 Foreign debt — 4,400 — 4,400 Equity securities 1,383 — 1,500 2,883 Asset backed securities — 178 — 178 Total $ 1,383 $ 157,902 $ 15,103 $ 174,388 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2017 2016 Investment Securities, Available for Sale Balance, January 1 $ 15,103 $ 11,799 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income 111 31 Net purchases, sales, calls, and maturities (6 ) (18 ) Net transfers into Level 3 — — Balance, March 31 $ 15,208 $ 11,812 Of the Level 3 assets that were held by the Bank at March 31, 2017, the net unrealized gain as of March 31, 2017 was $196,000, which is recognized in other comprehensive income in the consolidated balance sheet. There were no purchases or sales of Level 3 securities in the first quarter of 2017. 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 and equity securities of community banks. 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 (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2017 $ 4,698 $ — $ — $ 4,698 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate March 31, 2017 $ 472 $ — $ — $ 472 December 31, 2016 $ 437 $ — $ — $ 437 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)	3 Months Ended
	Mar. 31, 2017
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 consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The 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 March 31, 2017 and December 31, 2016, the Consolidated Statements of Income for the three-month periods ended March 31, 2017 and March 31, 2016, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2017 and March 31, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the three-month periods ended March 31, 2017 and March 31, 2016, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2017 and March 31, 2016. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. 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, 2016.
Loans to Other Non-Financial Institutions	Loans to Other Non-Financial Institutions The Bank entered into an agreement with another financial institution this year to fund mortgage loans. Loans to other non-financial institutions are purchased participating interests in individual advances made to mortgage bankers nation-wide from an unaffiliated originating bank. The originating bank services these loans and cash flows on the individual advances (principal, interest, and fees) which are allocated pro-rata based on ownership in the participating interest, less fees paid for the servicing activity. The underlying collateral is generally made up of 1-4 family first residential mortgages owned by the mortgage banker and held for sale in the secondary market and have been underwritten using secondary market underwriting standards prior to purchasing the participating interest. Once the mortgage banker delivers the loan to the secondary market, the advance is required to be paid off, including the Bank’s participating interest. If the advance (in which the Bank has a participating interest) is outstanding over 90 days, the originating bank has the right to request the participating interest be paid off by the mortgage banker. The participating interests are subject to concentration risk to 7 different mortgage bankers, with the largest creditor outstanding representing 60% of the total at March 31, 2017. Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interest for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At March 31, 2017, there was no participating interest with delinquent payments over 30 days and no participating interest in advances that was over 30 days. Year to date, there have been no losses or charge-offs of participating interest.
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 921 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $22,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2017. A total of 1,000 shares were issued upon the exercise of stock options and 1,031 shares were issued under the Employee Stock Purchase Plan in the first quarter of 2017.
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 delivery of one share of ChoiceOne common stock.
Reclassifications	Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Securities (Tables)

Securities (Tables)	3 Months Ended
	Mar. 31, 2017
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: March 31, 2017 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 60,529 $ 41 $ (599 ) $ 59,971 U.S. Treasury 4,104 — (21 ) 4,083 State and municipal 93,547 948 (577 ) 93,918 Mortgage-backed 7,535 24 (115 ) 7,444 Corporate 7,003 18 (26 ) 6,995 Foreign debt 4,513 — (96 ) 4,417 Equity securities 3,067 262 — 3,329 Asset-backed securities 158 — (1 ) 157 Total $ 180,456 $ 1,293 $ (1,435 ) $ 180,314 December 31, 2016 Amortized Gross Gross Fair U.S. Government and federal agency $ 59,864 $ 34 $ (846 ) $ 59,052 U.S. Treasury 4,111 — (39 ) 4,072 State and municipal 89,169 748 (944 ) 88,973 Mortgage-backed 7,925 19 (155 ) 7,789 Corporate 7,069 12 (40 ) 7,041 Foreign debt 4,514 — (114 ) 4,400 Equity securities 2,617 266 — 2,883 Asset-backed securities 182 — (4 ) 178 Total $ 175,451 $ 1,079 $ (2,142 ) $ 174,388

Loans and Allowance for Loan 18

Loans and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (10 ) (80 ) — — (35 ) — (125 ) Recoveries — — 52 112 — 9 — 173 Provision (27 ) 67 9 (136 ) (39 ) (261 ) 387 — Ending balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Individually evaluated for impairment $ 36 $ 25 $ 6 $ 98 $ — $ 276 $ — $ 441 Collectively evaluated for impairment $ 370 $ 720 $ 280 $ 1,316 $ 23 $ 451 $ 724 $ 3,884 December 31, 2016 Individually evaluated for impairment $ 3 $ 11 $ 2 $ 91 $ — $ 296 $ — $ 403 Collectively evaluated for impairment $ 430 $ 677 $ 303 $ 1,347 $ 62 $ 717 $ 338 $ 3,874 Three Months Ended March 31, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (39 ) — — (69 ) — (141 ) Recoveries — 15 42 8 — 7 — 72 Provision (38 ) 123 (28 ) 100 (3 ) 24 (178 ) — Ending balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,125 Individually evaluated for impairment $ 2 $ 9 $ 2 $ 219 $ — $ 343 $ — $ 575 Collectively evaluated for impairment $ 380 $ 682 $ 270 $ 919 $ 43 $ 1,007 $ 249 $ 3,550 Loans March 31, 2017 Individually evaluated for impairment $ 482 $ 495 $ 34 $ 1,141 $ — $ 2,546 $ 4,698 Collectively evaluated for impairment 38,046 100,559 22,324 115,191 5,035 87,438 368,593 Ending balance $ 38,528 $ 101,054 $ 22,358 $ 116,332 $ 5,035 $ 89,984 $ 373,291 December 31, 2016 Individually evaluated for impairment $ 526 $ 301 $ 28 $ 1,073 $ — $ 2,983 $ 4,911 Collectively evaluated for impairment 44,088 95,787 21,568 109,689 6,153 86,804 364,089 Ending balance $ 44,614 $ 96,088 $ 21,596 $ 110,762 $ 6,153 $ 89,787 $ 369,000
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) March 31, December 31, March 31, December 31, March 31, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 10,581 $ 12,005 $ 13,642 $ 12,135 $ 7,880 $ 8,013 Risk rating 3 21,057 23,852 60,523 56,714 66,400 59,343 Risk rating 4 5,647 7,505 25,650 25,895 38,616 39,641 Risk rating 5 761 726 857 1,267 1,795 1,867 Risk rating 6 482 526 382 77 1,641 1,898 Risk rating 7 — — — — — — $ 38,528 $ 44,614 $ 101,054 $ 96,088 $ 116,332 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate March 31, December 31, March 31, December 31, March 31, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 22,345 $ 21,590 $ 5,035 $ 6,153 $ 89,620 $ 88,767 Nonperforming 8 — — — 50 229 Nonaccrual 5 6 — — 314 791 $ 22,358 $ 21,596 $ 5,035 $ 6,153 $ 89,984 $ 89,787
Schedule of troubled debt restructurings	The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2017 and March 31, 2016: March 31, 2017 March 31, 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 Commercial real estate — $ — $ — 1 $ 128 $ 128 Residential real estate — — — 1 30 30 — $ — $ — 2 $ 158 $ 158 The following schedule provides information on TDRs as of March 31, 2017 and 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2017 and March 31, 2016 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural 1 $ 105 1 $ 128 Residential real estate 1 126 — — 2 $ 231 1 $ 128
Schedule of impaired loans	Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2017 With no related allowance recorded Agricultural $ — $ — $ — Commercial and industrial 177 316 — Consumer — — — Commercial real estate 102 205 — Residential real estate — — — Subtotal 279 521 — With an allowance recorded Agricultural 482 486 36 Commercial and industrial 318 179 25 Consumer 34 34 6 Commercial real estate 1,039 1,207 98 Residential real estate 2,546 2,495 276 Subtotal 4,419 4,401 441 Total Agricultural 482 486 36 Commercial and industrial 495 495 25 Consumer 34 34 6 Commercial real estate 1,141 1,412 98 Residential real estate 2,546 2,495 276 Total $ 4,698 $ 4,922 $ 441 December 31, 2016 With no related allowance recorded Agricultural $ 482 $ 485 $ — Commercial and industrial 206 207 — Consumer — — — Commercial real estate 342 939 — Residential real estate 301 292 — Subtotal 1,331 1,923 — With an allowance recorded Agricultural 44 44 3 Commercial and industrial 95 95 11 Consumer 28 28 2 Commercial real estate 731 804 91 Residential real estate 2,682 2,711 296 Subtotal 3,580 3,682 403 Total Agricultural 526 529 3 Commercial and industrial 301 302 11 Consumer 28 28 2 Commercial real estate 1,073 1,743 91 Residential real estate 2,983 3,003 296 Total $ 4,911 $ 5,605 $ 403 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2017 and 2016: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2017 With no related allowance recorded Agricultural $ 241 $ — Commercial and industrial 191 1 Consumer — — Commercial real estate 222 — Residential real estate 151 — Subtotal 805 1 With an allowance recorded Agricultural 263 — Commercial and industrial 207 3 Consumer 31 1 Commercial real estate 885 14 Residential real estate 2,614 26 Subtotal 4,000 44 Total Agricultural 504 — Commercial and industrial 398 4 Consumer 31 1 Commercial real estate 1,107 14 Residential real estate 2,765 26 Total $ 4,805 $ 45 March 31, 2016 With no related allowance recorded Agricultural $ 64 $ 2 Commercial and industrial 37 — Consumer — — Commercial real estate 1,400 4 Residential real estate 49 1 Subtotal 1,550 7 With an allowance recorded Agricultural 49 — Commercial and industrial 214 (3 ) Consumer 23 0 Commercial real estate 1,536 10 Residential real estate 2,545 24 Subtotal 4,367 31 Total Agricultural 113 2 Commercial and industrial 251 (3 ) Consumer 23 0 Commercial real estate 2,936 14 Residential real estate 2,594 25 Total $ 5,917 $ 39
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 March 31, 2017 Agricultural $ — $ — $ 482 $ 482 $ 38,046 $ 38,528 $ — Commercial and industrial — — 235 235 100,819 101,054 — Consumer 92 16 13 121 22,237 22,358 8 Commercial real estate 191 24 — 215 116,117 116,332 — Construction real estate — — — — 5,035 5,035 — Residential real estate 3,070 157 82 3,309 86,675 89,984 50 $ 3,353 $ 197 $ 812 $ 4,362 $ 368,929 $ 373,291 $ 58 December 31, 2016 Agricultural $ — $ — $ — $ — $ 44,614 $ 44,614 $ — Commercial and industrial — 30 245 275 95,813 96,088 — Consumer 99 2 6 107 21,489 21,596 — Commercial real estate — — 260 260 110,502 110,762 — Construction real estate — — — — 6,153 6,153 — Residential real estate 1,027 109 646 1,782 88,005 89,787 229 $ 1,126 $ 141 $ 1,157 $ 2,424 $ 366,576 $ 369,000 $ 229 (1) Includes nonaccrual loans.
Schedule of nonaccrual loans by loan category	Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2017 2016 Agricultural $ 482 $ 482 Commercial and industrial 374 245 Consumer 5 6 Commercial real estate 261 458 Construction real estate — — Residential real estate 314 792 $ 1,436 $ 1,983

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of basic 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 (Dollars in thousands, except per share data) March 31, 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,446 $ 1,274 Weighted average common shares outstanding 3,279,001 3,296,238 Basic earnings per share $ 0.44 $ 0.39 Diluted Earnings Per Share Net income available to common shareholders $ 1,446 $ 1,274 Weighted average common shares outstanding 3,279,001 3,296,238 Plus dilutive stock options and restricted stock units 6,232 8,265 Weighted average common shares outstanding and potentially dilutive shares 3,285,233 3,304,503 Diluted earnings per share $ 0.44 $ 0.39

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
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) March 31, 2017 Assets: Cash and due from banks $ 11,315 $ 11,315 $ 11,315 $ — $ — Securities available for sale 180,314 180,314 1,829 163,277 15,208 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 2,308 2,390 — — 2,390 Loans to other financial institutions 3,507 3,507 3,507 Loans, net 368,966 369,432 — — 369,432 Liabilities: Noninterest-bearing deposits 127,945 127,945 — 127,945 — Interest-bearing deposits 380,422 379,451 — 379,451 — Repurchase agreements 4,606 4,606 — 4,606 — Federal funds purchased 3,873 3,873 — 3,873 — Federal Home Loan Bank advances 24,293 24,306 — 24,306 — December 31, 2016 Assets: Cash and due from banks $ 14,809 $ 14,809 $ 14,809 $ — $ — Securities available for sale 174,388 174,388 1,383 157,902 15,103 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,974 2,044 — 2,044 — Loans, net 364,723 365,780 — — 365,780 Liabilities: Noninterest-bearing deposits 127,611 127,611 — 127,611 — Interest-bearing deposits 384,775 383,879 — 383,879 — Repurchase agreements 7,913 7,913 — 7,913 — Federal Home Loan Bank advances 12,301 12,323 — 12,323 —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	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 Unobservable Balance at Investment Securities, Available for Sale – March 31, 2017 U.S. Treasury notes and bonds $ — $ 4,083 $ — $ 4,083 U.S. Government and federal agency — 59,971 — 59,971 State and municipal — 80,210 13,708 93,918 Mortgage-backed — 7,444 — 7,444 Corporate — 6,995 — 6,995 Foreign debt — 4,417 — 4,417 Equity securities 1,829 — 1,500 3,329 Asset backed securities — 157 — 157 Total $ 1,829 $ 163,277 $ 15,208 $ 180,314 Investment Securities, Available for Sale - December 31, 2016 U.S. Treasury notes and bonds $ — $ 4,072 $ — $ 4,072 U.S. Government and federal agency — 59,052 — 59,052 State and municipal — 75,370 13,603 88,973 Mortgage-backed — 7,789 — 7,789 Corporate — 7,041 — 7,041 Foreign debt — 4,400 — 4,400 Equity securities 1,383 — 1,500 2,883 Asset backed securities — 178 — 178 Total $ 1,383 $ 157,902 $ 15,103 $ 174,388
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) 2017 2016 Investment Securities, Available for Sale Balance, January 1 $ 15,103 $ 11,799 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income 111 31 Net purchases, sales, calls, and maturities (6 ) (18 ) Net transfers into Level 3 — — Balance, March 31 $ 15,208 $ 11,812
Schedule of assets measured at fair value on a nonrecurring basis	Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2017 $ 4,698 $ — $ — $ 4,698 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate March 31, 2017 $ 472 $ — $ — $ 472 December 31, 2016 $ 437 $ — $ — $ 437

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)shares
Property, Plant and Equipment [Line Items]
Shares issued during period under Employee Stock Purchase Plan, shares	1,031
Description of concentration risk	The participating interests are subject to concentration risk to 7 different mortgage bankers, with the largest creditor outstanding representing 60% of the total at March 31, 2017.
Stock Options [Member]
Property, Plant and Equipment [Line Items]
Shares issued upon exercise of options	1,000
Restricted stock [Member]
Property, Plant and Equipment [Line Items]
Vesting period	3 years
Directors' Stock Purchase Plan [Member]
Property, Plant and Equipment [Line Items]
Shares issued during the period, shares	921
Shares issued during the period, value | $	$ 22

Securities (Details)

Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 180,456	$ 175,451
Gross Unrealized Gains	1,293	1,079
Gross Unrealized Losses	(1,435)	(2,142)
Fair Value	180,314	174,388
U.S. Government and federal agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	60,529	59,864
Gross Unrealized Gains	41	34
Gross Unrealized Losses	(599)	(846)
Fair Value	59,971	59,052
U.S. Treasury notes and bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,104	4,111
Gross Unrealized Losses	(21)	(39)
Fair Value	4,083	4,072
State and municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	93,547	89,169
Gross Unrealized Gains	948	748
Gross Unrealized Losses	(577)	(944)
Fair Value	93,918	88,973
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,535	7,925
Gross Unrealized Gains	24	19
Gross Unrealized Losses	(115)	(155)
Fair Value	7,444	7,789
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,003	7,069
Gross Unrealized Gains	18	12
Gross Unrealized Losses	(26)	(40)
Fair Value	6,995	7,041
Foreign debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,513	4,514
Gross Unrealized Losses	(96)	(114)
Fair Value	4,417	4,400
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,067	2,617
Gross Unrealized Gains	262	266
Fair Value	3,329	2,883
Asset-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	158	182
Gross Unrealized Losses	(1)	(4)
Fair Value	$ 157	$ 178

Loans and Allowance for Loan 24

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Allowance for Loan Losses
Beginning balance	$ 4,277	$ 4,194
Charge-offs	(125)	(141)
Recoveries	173	72
Ending balance	4,325	4,125
Individually evaluated for impairment	441	575	$ 403
Collectively evaluated for impairment	3,884	3,550	3,874
Loans
Individually evaluated for impairment	4,698		4,911
Collectively evaluated for impairment	368,593		364,089
Loans	373,291		369,000
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	433	420
Provision	(27)	(38)
Ending balance	406	382
Individually evaluated for impairment	36	2	3
Collectively evaluated for impairment	370	380	430
Loans
Individually evaluated for impairment	482		526
Collectively evaluated for impairment	38,046		44,088
Loans	38,528		44,614
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	688	586
Charge-offs	(10)	(33)
Recoveries		15
Provision	67	123
Ending balance	745	691
Individually evaluated for impairment	25	9	11
Collectively evaluated for impairment	720	682	677
Loans
Individually evaluated for impairment	495		301
Collectively evaluated for impairment	100,559		95,787
Loans	101,054		96,088
Consumer [Member]
Allowance for Loan Losses
Beginning balance	305	297
Charge-offs	(80)	(39)
Recoveries	52	42
Provision	9	(28)
Ending balance	286	272
Individually evaluated for impairment	6	2	2
Collectively evaluated for impairment	280	270	303
Loans
Individually evaluated for impairment	34		28
Collectively evaluated for impairment	22,324		21,568
Loans	22,358		21,596
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,438	1,030
Recoveries	112	8
Provision	(136)	100
Ending balance	1,414	1,138
Individually evaluated for impairment	98	219	91
Collectively evaluated for impairment	1,316	919	1,347
Loans
Individually evaluated for impairment	1,141		1,073
Collectively evaluated for impairment	115,191		109,689
Loans	116,332		110,762
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	62	46
Provision	(39)	(3)
Ending balance	23	43
Collectively evaluated for impairment	23	43	62
Loans
Collectively evaluated for impairment	5,035		6,153
Loans	5,035		6,153
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,014	1,388
Charge-offs	(35)	(69)
Recoveries	9	7
Provision	(261)	24
Ending balance	727	1,350
Individually evaluated for impairment	276	343	296
Collectively evaluated for impairment	451	1,007	717
Loans
Individually evaluated for impairment	2,546		2,983
Collectively evaluated for impairment	87,438		86,804
Loans	89,984		89,787
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	337	427
Provision	387	(178)
Ending balance	724	249
Collectively evaluated for impairment	$ 724	$ 249	$ 338

Loans and Allowance for Loan 25

Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 373,291	$ 369,000
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	38,528	44,614
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	10,581	12,005
Agricultural [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	21,057	23,852
Agricultural [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	5,647	7,505
Agricultural [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	761	726
Agricultural [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	482	526
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	101,054	96,088
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	13,642	12,135
Commercial and Industrial [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	60,523	56,714
Commercial and Industrial [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	25,650	25,895
Commercial and Industrial [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	857	1,267
Commercial and Industrial [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	382	77
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	116,332	110,762
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,880	8,013
Commercial Real Estate [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	66,400	59,343
Commercial Real Estate [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	38,616	39,641
Commercial Real Estate [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,795	1,867
Commercial Real Estate [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 1,641	$ 1,898

Loans and Allowance for Loan 26

Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 373,291	$ 369,000
Nonaccrual past due loans	1,436	1,983
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	22,358	21,596
Nonaccrual past due loans	5	6
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	22,345	21,590
Consumer [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	8
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	5,035	6,153
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	5,035	6,153
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	89,984	89,787
Nonaccrual past due loans	314	792
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	89,620	88,767
Residential Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 50	$ 229

Loans and Allowance for Loan 27

Loans and Allowance for Loan Losses (Details 3) $ in Thousands	3 Months Ended
	Mar. 31, 2017Loan	Mar. 31, 2016USD ($)Loan
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan		2
Pre-Modification Outstanding Recorded Investment		$ 158
Post Modification Oustanding Recorded Investment		$ 158
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan		1
Pre-Modification Outstanding Recorded Investment		$ 128
Post Modification Oustanding Recorded Investment		$ 128
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan		1
Pre-Modification Outstanding Recorded Investment		$ 30
Post Modification Oustanding Recorded Investment		$ 30

Loans and Allowance for Loan 28

Loans and Allowance for Loan Losses (Details 4) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)N	Mar. 31, 2016USD ($)N
Financing Receivable, Impaired [Line Items]
Number of Loans | N	2	1
Subsequent Defaults, Recorded Investment | $	$ 231	$ 128
Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Number of Loans | N	1	1
Subsequent Defaults, Recorded Investment | $	$ 105	$ 128
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Number of Loans | N	1
Subsequent Defaults, Recorded Investment | $	$ 126

Loans and Allowance for Loan 29

Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	$ 279		$ 1,331
Unpaid Principal Balance with no related allowance recorded	521		1,923
Average Recorded Investment with no related allowance recorded	805	$ 1,550
Interest Income Recognized with no related allowance recorded	1	7
Recorded Investment with an allowance recorded	4,419		3,580
Unpaid Principal Balance with an allowance recorded	4,401		3,682
Related Allowance	441		403
Average Recorded Investment with an allowance recorded	4,000	4,367
Interest Income Recognized with an allowance recorded	44	31
Recorded Investment	4,698		4,911
Unpaid Principal Balance	4,922		5,605
Average Recorded Investment	4,805	5,917
Interest Income Recognized	45	39
Agricultural [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded			482
Unpaid Principal Balance with no related allowance recorded			485
Average Recorded Investment with no related allowance recorded	241	64
Interest Income Recognized with no related allowance recorded		2
Recorded Investment with an allowance recorded	482		44
Unpaid Principal Balance with an allowance recorded	486		44
Related Allowance	36		3
Average Recorded Investment with an allowance recorded	263	49
Recorded Investment	482		526
Unpaid Principal Balance	486		529
Average Recorded Investment	504	113
Interest Income Recognized		2
Commercial and Industrial [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	177		206
Unpaid Principal Balance with no related allowance recorded	316		207
Average Recorded Investment with no related allowance recorded	191	37
Interest Income Recognized with no related allowance recorded	1
Recorded Investment with an allowance recorded	318		95
Unpaid Principal Balance with an allowance recorded	179		95
Related Allowance	25		11
Average Recorded Investment with an allowance recorded	207	214
Interest Income Recognized with an allowance recorded	3	(3)
Recorded Investment	495		301
Unpaid Principal Balance	495		302
Average Recorded Investment	398	251
Interest Income Recognized	4	(3)
Consumer [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with an allowance recorded	34		28
Unpaid Principal Balance with an allowance recorded	34		28
Related Allowance	6		2
Average Recorded Investment with an allowance recorded	31	23
Interest Income Recognized with an allowance recorded	1	0
Recorded Investment	34		28
Unpaid Principal Balance	34		28
Average Recorded Investment	31	23
Interest Income Recognized	1	0
Commercial Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	102		342
Unpaid Principal Balance with no related allowance recorded	205		939
Average Recorded Investment with no related allowance recorded	222	1,400
Interest Income Recognized with no related allowance recorded		4
Recorded Investment with an allowance recorded	1,039		731
Unpaid Principal Balance with an allowance recorded	1,207		804
Related Allowance	98		91
Average Recorded Investment with an allowance recorded	885	1,536
Interest Income Recognized with an allowance recorded	14	10
Recorded Investment	1,141		1,073
Unpaid Principal Balance	1,412		1,743
Average Recorded Investment	1,107	2,936
Interest Income Recognized	14	14
Residential Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded			301
Unpaid Principal Balance with no related allowance recorded			292
Average Recorded Investment with no related allowance recorded	151	49
Interest Income Recognized with no related allowance recorded		1
Recorded Investment with an allowance recorded	2,546		2,682
Unpaid Principal Balance with an allowance recorded	2,495		2,711
Related Allowance	276		296
Average Recorded Investment with an allowance recorded	2,614	2,545
Interest Income Recognized with an allowance recorded	26	24
Recorded Investment	2,546		2,983
Unpaid Principal Balance	2,495		$ 3,003
Average Recorded Investment	2,765	2,594
Interest Income Recognized	$ 26	$ 25

Loans and Allowance for Loan 30

Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 4,362	$ 2,424
Loans Not Past Due		368,929	366,576
Loans		373,291	369,000
Loans 90 Days Past Due and Accruing		58	229
Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	812	1,157
30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		3,353	1,126
60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		197	141
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		482
Loans Not Past Due		38,046	44,614
Loans		38,528	44,614
Agricultural [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	482
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		235	275
Loans Not Past Due		100,819	95,813
Loans		101,054	96,088
Commercial and Industrial [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	235	245
Commercial and Industrial [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total			30
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		121	107
Loans Not Past Due		22,237	21,489
Loans		22,358	21,596
Loans 90 Days Past Due and Accruing		8
Consumer [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	13	6
Consumer [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		92	99
Consumer [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		16	2
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		215	260
Loans Not Past Due		116,117	110,502
Loans		116,332	110,762
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]		260
Commercial Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		191
Commercial Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		24
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due		5,035	6,153
Loans		5,035	6,153
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		3,309	1,782
Loans Not Past Due		86,675	88,005
Loans		89,984	89,787
Loans 90 Days Past Due and Accruing		50	229
Residential Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	82	646
Residential Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		3,070	1,027
Residential Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 157	$ 109
[1]	Includes nonaccrual loans.

Loans and Allowance for Loan 31

Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 1,436	$ 1,983
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	482	482
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	374	245
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	5	6
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	261	458
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 314	$ 792

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic Earnings Per Share
Net income available to common shareholders	$ 1,446	$ 1,274
Weighted average common shares outstanding	3,279,001	3,296,238
Basic earnings per share	$ 0.44	$ 0.39
Diluted Earnings Per Share
Net income available to common shareholders	$ 1,446	$ 1,274
Weighted average common shares outstanding	3,279,001	3,296,238
Plus dilutive stock options and restricted stock units	6,232	8,265
Weighted average common shares outstanding and potentially dilutive shares	3,285,233	3,304,503
Diluted earnings per share	$ 0.44	$ 0.39

Earnings Per Share (Details Nar

Earnings Per Share (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Anti-dilutive stock options not included in calculation of earnings per share	30,000	30,000

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets:
Securities available for sale	$ 180,314	$ 174,388
Loans to other financial institutions	3,507
Liabilities:
Noninterest-bearing deposits	127,945	127,611
Interest-bearing deposits	380,422	384,775
Federal funds purchased	3,873
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Cash and due from banks	11,315	14,809
Securities available for sale	1,829	1,383
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Securities available for sale	163,277	157,902
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale		2,044
Liabilities:
Noninterest-bearing deposits	127,945	127,611
Interest-bearing deposits	379,451	383,879
Repurchase agreements	4,606	7,913
Federal funds purchased	3,873
Federal Home Loan Bank advances	24,306	12,323
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Securities available for sale	15,208	15,103
Loans to other financial institutions	3,507
Loans held for sale	2,390
Loans, net	369,432	365,780
Carrying Amount [Member]
Assets:
Cash and due from banks	11,315	14,809
Securities available for sale	180,314	174,388
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans to other financial institutions	3,507
Loans held for sale	2,308	1,974
Loans, net	368,966	364,723
Liabilities:
Noninterest-bearing deposits	127,945	127,611
Interest-bearing deposits	380,422	384,775
Repurchase agreements	4,606	7,913
Federal funds purchased	3,873
Federal Home Loan Bank advances	24,293	12,301
Estimated Fair Value [Member]
Assets:
Cash and due from banks	11,315	14,809
Securities available for sale	180,314	174,388
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans to other financial institutions	3,507
Loans held for sale	2,390	2,044
Loans, net	369,432	365,780
Liabilities:
Noninterest-bearing deposits	127,945	127,611
Interest-bearing deposits	379,451	383,879
Repurchase agreements	4,606	7,913
Federal funds purchased	3,873
Federal Home Loan Bank advances	$ 24,306	$ 12,323

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 180,314	$ 174,388
Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	3,329	2,883
U.S. Treasury notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	4,083	4,072
U.S. Government and federal agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	59,971	59,052
State and municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	93,918	88,973
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,444	7,789
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	6,995	7,041
Foreign debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	4,417	4,400
Asset-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	157	178
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	1,829	1,383
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	163,277	157,902
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	15,208	15,103
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	180,314	174,388
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	3,329	2,883
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	4,083	4,072
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	59,971	59,052
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	93,918	88,973
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	7,444	7,789
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	6,995	7,041
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	4,417	4,400
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	157	178
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	1,829	1,383
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	1,829	1,383
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	163,277	157,902
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	4,083	4,072
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	59,971	59,052
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	80,210	75,370
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	7,444	7,789
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	6,995	7,041
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	4,417	4,400
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	157	178
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	15,208	15,103
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	$ 13,708	$ 13,603

Fair Value Measurements (Deta36

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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	$ 196
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 year	15,103	$ 11,799
Total realized and unrealized gains included in income
Total unrealized gains (losses) included in other comprehensive income	111	31
Net purchases, sales, calls, and maturities	(6)	(18)
Net transfers into Level 3
Balance at the end of year	$ 15,208	$ 11,812

Fair Value Measurements (Deta37

Fair Value Measurements (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 4,698	$ 4,911
Other real estate owned, net	472	437
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	4,698	4,911
Other real estate owned, net	$ 472	$ 437

Fair Value Measurements (Deta38

Fair Value Measurements (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value Disclosures [Abstract]
Total unrealized gains (losses) included in other comprehensive income	$ 196