ChoiceOne Financial Services (COFS) 10-Q 10 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 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	Jun. 30, 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		3,453,063
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 17,050	$ 14,809
Securities available for sale (Note 2)	180,448	174,388
Federal Home Loan Bank stock	1,994	1,994
Federal Reserve Bank stock	1,573	1,573
Loans held for sale	1,990	1,974
Loans to other financial institutions	4,162
Loans (Note 3)	379,448	369,000
Allowance for loan losses (Note 3)	(4,098)	(4,277)
Loans, net	375,350	364,723
Premises and equipment, net	12,473	12,588
Cash value of life insurance policies	14,315	14,117
Goodwill	13,728	13,728
Other assets	6,984	7,477
Total assets	630,067	607,371
Liabilities
Deposits - noninterest-bearing	133,956	127,611
Deposits - interest-bearing	390,388	384,775
Total deposits	524,344	512,386
Repurchase agreements	2,302	7,913
Advances from Federal Home Loan Bank	24,284	12,301
Other liabilities	3,609	3,073
Total liabilities	554,539	535,673
Shareholders' Equity
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,452,354 at June 30, 2017 and 3,277,944 at December 31, 2016	50,295	46,299
Retained earnings	24,148	25,997
Accumulated other comprehensive income (loss), net	1,085	(598)
Total shareholders' equity	75,528	71,698
Total liabilities and shareholders' equity	$ 630,067	$ 607,371

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 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	3,452,354	3,277,944

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest income
Loans, including fees	$ 4,401	$ 4,087	$ 8,565	$ 8,083
Securities:
Taxable	663	584	1,284	1,137
Tax exempt	352	363	713	729
Other	9	3	24	9
Total interest income	5,425	5,037	10,586	9,958
Interest expense
Deposits	292	199	540	408
Advances from Federal Home Loan Bank	52	45	107	75
Other	4	3	7	5
Total interest expense	348	247	654	488
Net interest income	5,077	4,790	9,932	9,470
Provision for loan losses	25		25
Net interest income after provision for loan losses	5,052	4,790	9,907	9,470
Noninterest income
Customer service charges	1,049	1,030	2,023	1,990
Insurance and investment commissions	262	226	500	449
Gains on sales of loans	341	419	565	838
Gains on sales of securities	60	156	126	226
(Losses) gains on sales and write-downs of other assets	4		4	(23)
Earnings on life insurance policies	99	89	198	177
Other	127	131	258	236
Total noninterest income	1,942	2,051	3,674	3,893
Noninterest expense
Salaries and benefits	2,591	2,565	5,106	4,976
Occupancy and equipment	689	692	1,397	1,333
Data processing	554	539	1,130	1,098
Professional fees	262	232	491	468
Supplies and postage	90	95	191	220
Advertising and promotional	73	89	127	132
Intangible amortization		112		224
FDIC insurance	46	73	100	140
Other	474	504	906	1,107
Total noninterest expense	4,779	4,901	9,448	9,698
Income before income tax	2,214	1,940	4,133	3,665
Income tax expense	580	495	1,052	947
Net income	$ 1,635	$ 1,445	$ 3,081	$ 2,719
Basic earnings per share (Note 4) (in dollars per share)	$ 0.47	$ 0.41	$ 0.89	$ 0.78
Diluted earnings per share (Note 4) (in dollars per share)	0.47	0.41	0.89	0.78
Dividends declared per share (in dollars per share)	$ 0.17	$ 0.16	$ 0.33	$ 0.32

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 1,635	$ 1,445	$ 3,081	$ 2,719
Other comprehensive income:
Changes in net unrealized gains on investment securities available for sale, net of tax expense of $557 and $347 for the three months ended June 30, 2017 and June 30, 2016 respectively. Changes in net unrealized gains on investment securities available for sale, net of tax expense of $910 and $712 for the six months ended June 30, 2017 and June 30, 2016 respectively.	1,082	673	1,766	1,382
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax benefit of $21 and $53 for the three months ended June 30, 2017 and June 30, 2016 respectively. Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax benefit of $43 and $77 for the six months ended June 30, 2017 and June 30, 2016 respectively.	(39)	(103)	(83)	(149)
Other comprehensive income, net of tax	1,043	570	1,683	1,233
Comprehensive income	$ 2,677	$ 2,015	$ 4,764	$ 3,952

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Unrealized holding gains on available for sale securities, tax expense (benefit)	$ 557	$ 347	$ 910	$ 712
Reclassification adjustment for gain recognized in net income, tax expense (benefit)	$ 21	$ 53	$ 43	$ 77

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),Net [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		2,719		2,719
Other comprehensive income			1,233	1,233
Shares issued	$ 130			130
Shares issued (in shares)	7,142
Shares repurchased	$ (678)			(678)
Shares repurchased (in shares)	(30,000)
Change in ESOP repurchase obligation	$ 127			127
Effect of employee stock purchases	6			6
Restricted stock units issued	$ 141			141
Restricted stock units issued (in shares)	3,482
Cash dividends declared ($0.33 and $0.32 per share for the six months ended June 30, 2017 and June 30, 2016 respectively)		(1,123)		(1,123)
Balance, ending at Jun. 30, 2016	$ 46,227	23,734	2,436	72,397
Balance, ending (in shares) at Jun. 30, 2016	3,275,852
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		3,081		$ 3,081
Other comprehensive income			1,683	1,683
Shares issued	$ 82			82
Shares issued (in shares)	5,318
Effect of employee stock purchases	$ 6			6
Stock options exercised	$ 13			13
Stock options exercised (in shares)	1,000
Stock-based compensation expense	$ 116			116
Restricted stock units issued (in shares)	4,104
Stock dividend declared (5%)	$ 3,779	(3,779)
Stock dividend declared (5%) (in shares)	163,988
Cash dividends declared ($0.33 and $0.32 per share for the six months ended June 30, 2017 and June 30, 2016 respectively)		(1,152)		(1,152)
Balance, ending at Jun. 30, 2017	$ 50,295	$ 24,148	$ 1,085	$ 75,528
Balance, ending (in shares) at Jun. 30, 2017	3,452,354			3,452,354

CONSOLIDATED STATEMENTS OF CHA8

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Cash dividend declared, per share	$ 0.17	$ 0.16	$ 0.33	$ 0.32
Stock dividend declared			5.00%

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 3,081	$ 2,719
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	25
Depreciation	643	481
Amortization	549	799
Compensation expense on stock purchases and restricted stock units	163	147
Gains on sales of securities	(126)	(226)
Gains on sales of loans	(565)	(838)
Loans originated for sale	(14,456)	(22,737)
Proceeds from loan sales	14,180	25,633
Earnings on bank-owned life insurance	(198)	(177)
Gains on sales of other real estate owned		3
Proceeds from sales of other real estate owned	172	28
Deferred federal income tax expense/(benefit)	138	(86)
Net changes in other assets	309	25
Net changes in other liabilities	(468)	670
Net cash from operating activities	3,447	6,441
Securities available for sale:
Sales	12,520	11,157
Maturities, prepayments and calls	8,011	22,835
Purchases	(24,301)	(47,375)
Loan originations and payments, net	(14,378)	(7,849)
Additions to premises and equipment	(291)	(288)
Net cash from investing activities	(18,439)	(21,520)
Cash flows from financing activities:
Net change in deposits	11,958	(10,875)
Net change in repurchase agreements	(5,611)	(4,081)
Proceeds from Federal Home Loan Bank advances	117,500	202,000
Payments on Federal Home Loan Bank advances	(105,517)	(168,015)
Issuance of common stock	55	130
Repurchase of common stock		(678)
Cash dividends	(1,152)	(1,123)
Net cash from financing activities	17,233	17,358
Net change in cash and cash equivalents	2,241	2,279
Beginning cash and cash equivalents	14,809	11,187
Ending cash and cash equivalents	17,050	13,466
Supplemental disclosures of cash flow information:
Cash paid for interest	596	486
Cash paid for taxes	800	100
Loans transferred to other real estate owned	$ 207	$ 13

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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 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 June 30, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended June 30, 2017 and June 30, 2016, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2017 and June 30, 2016. Operating results for the six months ended June 30, 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. 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 reported assets and net income. Stock Transactions A total of 3,172 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $73,379 under the terms of the Directors’ Stock Purchase Plan in the first six months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first half of 2017. A total of 2,146 shares of common stock were issued to employees for a cash price of $41,564 under the Employee Stock Purchase Plan in the first half of 2017. A total of 4,104 shares of common stock were issued to employees for Restricted Stock Units that vested during the first six months 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. Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of post-retirement plans, net of tax, which are also recognized as a separate component of shareholders’ equity. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 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: June 30, 2017 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 55,202 $ 38 $ (292 ) $ 54,948 U.S. Treasury 4,097 7 (10 ) 4,094 State and municipal 94,269 1,744 (172 ) 95,841 Mortgage-backed 10,165 37 (84 ) 10,118 Corporate 7,500 22 (14 ) 7,508 Foreign debt 4,512 — (57 ) 4,455 Equity securities 3,083 269 — 3,352 Asset-backed securities 133 — (1 ) 132 Total $ 178,961 $ 2,117 $ (630 ) $ 180,448 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value 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 six months ended June 30, 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. Presented below is a schedule of maturities of securities as of June 30, 2017, the fair value of securities as of June 30, 2017 and December 31, 2016 and the weighted average yields of securities as of June 30, 2017: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2017 2016 U.S. Government and federal agency $ 22,353 $ 30,639 $ 1,956 $ — $ 54,948 $ 59,052 U.S. Treasury notes and bonds — 4,094 — — 4,094 4,072 State and municipal 9,360 47,344 36,353 2,784 95,841 88,973 Corporate 1,800 5,206 502 — 7,508 7,041 Foreign debt securities 999 3,456 — — 4,455 4,400 Asset-backed securities 132 — — — 132 178 Total debt securities 34,644 90,739 38,811 2,784 166,978 163,716 Mortgage-backed securities — 9,435 682 — 10,117 7,789 Equity securities (2) — — 1,001 2,351 3,352 2,883 Total $ 34,644 $ 100,174 $ 40,494 $ 5,135 $ 180,447 $ 174,388 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 1.92 % 1.56 % 1.78 % — % 1.71 % U.S. Treasury notes and bonds — 1.54 — — 1.54 State and municipal (1) 2.93 3.11 3.45 2.00 3.19 Corporate 1.28 2.18 — — 1.82 Foreign debt securities 1.10 1.44 — — 1.37 Asset-backed securities 1.40 — — — 1.40 Mortgage-backed securities — 2.15 2.05 — 2.14 Equity securities (2) — — 4.61 0.96 2.05 (1) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 34%. (2) Equity securities are preferred and common stock that may or may not have a stated maturity.

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 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 was as follows: (Dollars in thousands) Agricultural Commercial Consumer Commercial Real Estate Construction Real Estate Residential Unallocated Total Allowance for Loan Losses Beginning balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Charge-offs — (352 ) (57 ) — — — — (409 ) Recoveries — — 39 49 40 29 — 157 Provision (11 ) 511 26 88 (39 ) (7 ) (543 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Six Months Ended June 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (362 ) (137 ) — — (34 ) — (533 ) Recoveries — — 91 161 40 37 — 329 Provision (38 ) 578 35 (48 ) (78 ) (268 ) (156 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Individually evaluated for impairment $ — $ 27 $ 4 $ 65 $ — $ 271 $ — $ 367 Collectively evaluated for impairment $ 395 $ 877 $ 290 $ 1,486 $ 24 $ 478 $ 181 $ 3,731 Three Months Ended June 30, 2016 Beginning balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,124 Charge-offs — — (29 ) — — — — (29 ) Recoveries — 8 28 23 — 142 — 201 Provision 18 (42 ) 6 (28 ) 2 (270 ) 315 0 Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Six Months Ended June 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (68 ) — — (69 ) — (170 ) Recoveries — 23 69 31 — 149 — 272 Provision (20 ) 81 (21 ) 72 (2 ) (246 ) 136 0 Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Individually evaluated for impairment $ 11 $ 11 $ 1 $ 177 $ — $ 364 $ — $ 564 Collectively evaluated for impairment $ 389 $ 646 $ 276 $ 956 $ 45 $ 858 $ 563 $ 3,732 Loans Individually evaluated for impairment $ 442 $ 309 $ 30 $ 887 $ — $ 2,715 $ 4,383 Collectively evaluated for impairment 41,303 101,185 23,373 116,065 5,437 87,702 375,065 Ending balance $ 41,745 $ 101,494 $ 23,403 $ 116,952 $ 5,437 $ 90,417 $ 379,448 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) June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 11,046 $ 12,005 $ 12,442 $ 12,135 $ 6,741 $ 8,013 Risk rating 3 22,173 23,852 60,843 56,714 69,070 59,343 Risk rating 4 7,715 7,505 27,402 25,895 37,610 39,641 Risk rating 5 369 726 515 1,267 1,904 1,867 Risk rating 6 442 526 292 77 1,627 1,898 Risk rating 7 — — — — — — $ 41,745 $ 44,614 $ 101,494 $ 96,088 $ 116,952 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 23,392 $ 21,590 $ 5,437 $ 6,153 $ 89,469 $ 88,767 Nonperforming 6 — — — 504 229 Nonaccrual 5 6 — — 444 791 $ 23,403 $ 21,596 $ 5,437 $ 6,153 $ 90,417 $ 89,787 The following schedule provides information on loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2016. There were no loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2017. Three Months Ended June 30, 2016 Six Months Ended June 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 Commercial real estate — $ — $ — 1 $ 128 $ 128 Residential Real Estate 2 150 150 3 179 179 Total 2 $ 150 $ 150 4 $ 307 $ 307 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. 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 as of June 30, 2017 and 2016 were as follows: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2017 With no related allowance recorded Agricultural $ 442 $ 461 $ — Commercial and industrial 176 176 — Consumer — — — Commercial real estate 97 227 — Residential real estate 173 173 — Subtotal 888 1,037 — With an allowance recorded Agricultural — — — Commercial and industrial 133 374 27 Consumer 30 30 4 Commercial real estate 790 868 65 Residential real estate 2,542 2,564 271 Subtotal 3,495 3,836 367 Total Agricultural 442 461 — Commercial and industrial 309 550 27 Consumer 30 30 4 Commercial real estate 887 1,095 65 Residential real estate 2,715 2,737 271 Total $ 4,383 $ 4,873 $ 367 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 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 June 30, 2017 Agricultural $ — $ — $ — $ — $ 41,745 $ 41,745 $ — Commercial and industrial 73 — 235 308 101,186 101,494 — Consumer 30 49 6 85 23,318 23,403 6 Commercial real estate 106 — 24 130 116,822 116,952 — Construction real estate — — — — 5,437 5,437 — Residential real estate 172 579 619 1,370 89,047 90,417 504 $ 381 $ 628 $ 884 $ 1,893 $ 377,555 $ 379,448 $ 510 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) June 30, December 31, 2017 2016 Agricultural $ 442 $ 482 Commercial and industrial 285 245 Consumer 5 6 Commercial real estate 250 458 Construction real estate — — Residential real estate 443 792 $ 1,425 $ 1,983

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 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 Six Months Ended (Dollars in thousands, except per share data) June 30, June 30, 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Basic earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78 Diluted Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Plus dilutive stock options and restricted stock units 4,049 5,437 3,482 5,550 Weighted average common shares outstanding and potentially dilutive shares 3,453,849 3,470,265 3,449,891 3,468,489 Diluted earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78 Note that 2016 share amounts have been adjusted for the 5% stock dividend occurring during 2017. There were 31,500 stock options for the three months ended June 30, 2017 and 30,000 for the three months ended June 30, 2016 with an exercise price more than the current market price. These stock options have been excluded from the calculation of diluted earnings above. There were 47,250 stock options for the six months ended June 30, 2017 and 30,000 for the six months ended June 30, 2016 with an exercise price more than the current market price. These stock options have been excluded from the calculation of diluted earnings above.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2017
Investments, All Other Investments [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) June 30, 2017 Assets: Cash and due from banks $ 17,050 $ 17,050 $ 17,050 $ — $ — Securities available for sale 180,448 180,448 1,852 163,738 14,858 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,990 2,051 — — 2,051 Loans to other financial institutions 4,162 4,162 4,162 Loans, net 375,350 382,827 — — 382,827 Liabilities: Noninterest-bearing deposits 133,956 133,956 — 133,956 — Interest-bearing deposits 390,388 389,473 — 389,473 — Repurchase agreements 2,302 2,302 — 2,302 — Federal Home Loan Bank advances 24,284 24,308 — 24,308 — 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 financial instruments 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 June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 2017
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 June 30, 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 Balance at Investment Securities, Available for Sale – June 30, 2017 U.S. Treasury notes and bonds $ — $ 4,094 $ — $ 4,094 U.S. Government and federal agency — 54,948 — 54,948 State and municipal — 82,483 13,358 95,841 Mortgage-backed — 10,118 — 10,118 Corporate — 7,508 — 7,508 Foreign debt — 4,455 — 4,455 Equity securities 1,852 — 1,500 3,352 Asset backed securities — 132 — 132 Total $ 1,852 $ 163,738 $ 14,858 $ 180,448 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 162 (187 ) Net purchases, sales, calls, and maturities (407 ) 387 Net transfers into Level 3 — — Balance, June 30 $ 14,858 $ 11,999 Of the Level 3 assets that were held by the Bank at June 30, 2017, the net unrealized gain for the six months ended June 30, 2017 was $162,000, which is recognized in other comprehensive income in the consolidated balance sheet. No Level 3 securities were purchased during the first half of 2017, $401,000 of Level 3 securities matured or were called, and there were $6,000 in principal paydowns in the same period. Of the Level 3 assets that were held by the Bank at June 30, 2016, the net unrealized loss for the six months ended June 30, 2016 was $187,000, which is recognized in other comprehensive income in the consolidated balance sheet. $750,000 of Level 3 securities were purchased during the first half of 2016, $182,000 of Level 3 securities matured or were called, and there were $181,000 in principal payments in the same period. 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 (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans June 30, 2017 $ 4,383 $ — $ — $ 4,383 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate June 30, 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)	6 Months Ended
	Jun. 30, 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 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 June 30, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended June 30, 2017 and June 30, 2016, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2017 and June 30, 2016. Operating results for the six months ended June 30, 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.
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 reported assets and net income.
Stock Transactions	Stock Transactions A total of 3,172 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $73,379 under the terms of the Directors’ Stock Purchase Plan in the first six months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first half of 2017. A total of 2,146 shares of common stock were issued to employees for a cash price of $41,564 under the Employee Stock Purchase Plan in the first half of 2017. A total of 4,104 shares of common stock were issued to employees for Restricted Stock Units that vested during the first six months 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.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of post-retirement plans, net of tax, which are also recognized as a separate component of shareholders’ equity.
Reclassifications	Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation.

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 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: June 30, 2017 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 55,202 $ 38 $ (292 ) $ 54,948 U.S. Treasury 4,097 7 (10 ) 4,094 State and municipal 94,269 1,744 (172 ) 95,841 Mortgage-backed 10,165 37 (84 ) 10,118 Corporate 7,500 22 (14 ) 7,508 Foreign debt 4,512 — (57 ) 4,455 Equity securities 3,083 269 — 3,352 Asset-backed securities 133 — (1 ) 132 Total $ 178,961 $ 2,117 $ (630 ) $ 180,448 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value 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
Schedule of maturities of securities and the weighted average yields of securities	Presented below is a schedule of maturities of securities as of June 30, 2017, the fair value of securities as of June 30, 2017 and December 31, 2016 and the weighted average yields of securities as of June 30, 2017: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2017 2016 U.S. Government and federal agency $ 22,353 $ 30,639 $ 1,956 $ — $ 54,948 $ 59,052 U.S. Treasury notes and bonds — 4,094 — — 4,094 4,072 State and municipal 9,360 47,344 36,353 2,784 95,841 88,973 Corporate 1,800 5,206 502 — 7,508 7,041 Foreign debt securities 999 3,456 — — 4,455 4,400 Asset-backed securities 132 — — — 132 178 Total debt securities 34,644 90,739 38,811 2,784 166,978 163,716 Mortgage-backed securities — 9,435 682 — 10,117 7,789 Equity securities (2) — — 1,001 2,351 3,352 2,883 Total $ 34,644 $ 100,174 $ 40,494 $ 5,135 $ 180,447 $ 174,388 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 1.92 % 1.56 % 1.78 % — % 1.71 % U.S. Treasury notes and bonds — 1.54 — — 1.54 State and municipal (1) 2.93 3.11 3.45 2.00 3.19 Corporate 1.28 2.18 — — 1.82 Foreign debt securities 1.10 1.44 — — 1.37 Asset-backed securities 1.40 — — — 1.40 Mortgage-backed securities — 2.15 2.05 — 2.14 Equity securities (2) — — 4.61 0.96 2.05 (1) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 34%. (2) Equity securities are preferred and common stock that may or may not have a stated maturity.

LOANS AND ALLOWANCE FOR LOAN 18

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 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 was as follows: (Dollars in thousands) Agricultural Commercial Consumer Commercial Real Estate Construction Real Estate Residential Unallocated Total Allowance for Loan Losses Beginning balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Charge-offs — (352 ) (57 ) — — — — (409 ) Recoveries — — 39 49 40 29 — 157 Provision (11 ) 511 26 88 (39 ) (7 ) (543 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Six Months Ended June 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (362 ) (137 ) — — (34 ) — (533 ) Recoveries — — 91 161 40 37 — 329 Provision (38 ) 578 35 (48 ) (78 ) (268 ) (156 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Individually evaluated for impairment $ — $ 27 $ 4 $ 65 $ — $ 271 $ — $ 367 Collectively evaluated for impairment $ 395 $ 877 $ 290 $ 1,486 $ 24 $ 478 $ 181 $ 3,731 Three Months Ended June 30, 2016 Beginning balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,124 Charge-offs — — (29 ) — — — — (29 ) Recoveries — 8 28 23 — 142 — 201 Provision 18 (42 ) 6 (28 ) 2 (270 ) 315 0 Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Six Months Ended June 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (68 ) — — (69 ) — (170 ) Recoveries — 23 69 31 — 149 — 272 Provision (20 ) 81 (21 ) 72 (2 ) (246 ) 136 0 Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Individually evaluated for impairment $ 11 $ 11 $ 1 $ 177 $ — $ 364 $ — $ 564 Collectively evaluated for impairment $ 389 $ 646 $ 276 $ 956 $ 45 $ 858 $ 563 $ 3,732 Loans Individually evaluated for impairment $ 442 $ 309 $ 30 $ 887 $ — $ 2,715 $ 4,383 Collectively evaluated for impairment 41,303 101,185 23,373 116,065 5,437 87,702 375,065 Ending balance $ 41,745 $ 101,494 $ 23,403 $ 116,952 $ 5,437 $ 90,417 $ 379,448 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) June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 11,046 $ 12,005 $ 12,442 $ 12,135 $ 6,741 $ 8,013 Risk rating 3 22,173 23,852 60,843 56,714 69,070 59,343 Risk rating 4 7,715 7,505 27,402 25,895 37,610 39,641 Risk rating 5 369 726 515 1,267 1,904 1,867 Risk rating 6 442 526 292 77 1,627 1,898 Risk rating 7 — — — — — — $ 41,745 $ 44,614 $ 101,494 $ 96,088 $ 116,952 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 23,392 $ 21,590 $ 5,437 $ 6,153 $ 89,469 $ 88,767 Nonperforming 6 — — — 504 229 Nonaccrual 5 6 — — 444 791 $ 23,403 $ 21,596 $ 5,437 $ 6,153 $ 90,417 $ 89,787
Schedule of troubled debt restructurings	The following schedule provides information on loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2016. There were no loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2017. Three Months Ended June 30, 2016 Six Months Ended June 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 Commercial real estate — $ — $ — 1 $ 128 $ 128 Residential Real Estate 2 150 150 3 179 179 Total 2 $ 150 $ 150 4 $ 307 $ 307
Schedule of impaired loans	Impaired loans by loan category as of June 30, 2017 and 2016 were as follows: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2017 With no related allowance recorded Agricultural $ 442 $ 461 $ — Commercial and industrial 176 176 — Consumer — — — Commercial real estate 97 227 — Residential real estate 173 173 — Subtotal 888 1,037 — With an allowance recorded Agricultural — — — Commercial and industrial 133 374 27 Consumer 30 30 4 Commercial real estate 790 868 65 Residential real estate 2,542 2,564 271 Subtotal 3,495 3,836 367 Total Agricultural 442 461 — Commercial and industrial 309 550 27 Consumer 30 30 4 Commercial real estate 887 1,095 65 Residential real estate 2,715 2,737 271 Total $ 4,383 $ 4,873 $ 367 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
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 June 30, 2017 Agricultural $ — $ — $ — $ — $ 41,745 $ 41,745 $ — Commercial and industrial 73 — 235 308 101,186 101,494 — Consumer 30 49 6 85 23,318 23,403 6 Commercial real estate 106 — 24 130 116,822 116,952 — Construction real estate — — — — 5,437 5,437 — Residential real estate 172 579 619 1,370 89,047 90,417 504 $ 381 $ 628 $ 884 $ 1,893 $ 377,555 $ 379,448 $ 510 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) June 30, December 31, 2017 2016 Agricultural $ 442 $ 482 Commercial and industrial 285 245 Consumer 5 6 Commercial real estate 250 458 Construction real estate — — Residential real estate 443 792 $ 1,425 $ 1,983

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended (Dollars in thousands, except per share data) June 30, June 30, 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Basic earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78 Diluted Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Plus dilutive stock options and restricted stock units 4,049 5,437 3,482 5,550 Weighted average common shares outstanding and potentially dilutive shares 3,453,849 3,470,265 3,449,891 3,468,489 Diluted earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Investments, All Other Investments [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) June 30, 2017 Assets: Cash and due from banks $ 17,050 $ 17,050 $ 17,050 $ — $ — Securities available for sale 180,448 180,448 1,852 163,738 14,858 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,990 2,051 — — 2,051 Loans to other financial institutions 4,162 4,162 4,162 Loans, net 375,350 382,827 — — 382,827 Liabilities: Noninterest-bearing deposits 133,956 133,956 — 133,956 — Interest-bearing deposits 390,388 389,473 — 389,473 — Repurchase agreements 2,302 2,302 — 2,302 — Federal Home Loan Bank advances 24,284 24,308 — 24,308 — 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)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	There were no liabilities measured at fair value as of June 30, 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 Balance at Investment Securities, Available for Sale – June 30, 2017 U.S. Treasury notes and bonds $ — $ 4,094 $ — $ 4,094 U.S. Government and federal agency — 54,948 — 54,948 State and municipal — 82,483 13,358 95,841 Mortgage-backed — 10,118 — 10,118 Corporate — 7,508 — 7,508 Foreign debt — 4,455 — 4,455 Equity securities 1,852 — 1,500 3,352 Asset backed securities — 132 — 132 Total $ 1,852 $ 163,738 $ 14,858 $ 180,448 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 162 (187 ) Net purchases, sales, calls, and maturities (407 ) 387 Net transfers into Level 3 — — Balance, June 30 $ 14,858 $ 11,999
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 June 30, 2017 $ 4,383 $ — $ — $ 4,383 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate June 30, 2017 $ 472 $ — $ — $ 472 December 31, 2016 $ 437 $ — $ — $ 437

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)shares
Stock Options [Member]
Property, Plant and Equipment [Line Items]
Shares issued upon exercise of options	1,000
Shares issued during period under Employee Stock Purchase Plan, shares	2,146
Shares issued during period under Employee Stock Purchase Plan, value | $	$ 41,564
Restricted stock [Member]
Property, Plant and Equipment [Line Items]
Shares issued during period under Employee Stock Purchase Plan, shares	4,104
Vesting period	3 years
Directors' Stock Purchase Plan [Member]
Property, Plant and Equipment [Line Items]
Shares issued during the period, shares	3,172
Shares issued during the period, value | $	$ 73,379

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017		Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 178,961		$ 175,451
Gross Unrealized Gains	2,117		1,079
Gross Unrealized Losses	(630)		(2,142)
Fair Value	180,448		174,388
U.S. Government and Federal Agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	55,202		59,864
Gross Unrealized Gains	38		34
Gross Unrealized Losses	(292)		(846)
Fair Value	54,948		59,052
U.S. Treasury Notes and Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,097		4,111
Gross Unrealized Gains	7
Gross Unrealized Losses	(10)		(39)
Fair Value	4,094		4,072
State and Municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	94,269		89,169
Gross Unrealized Gains	1,744		748
Gross Unrealized Losses	(172)		(944)
Fair Value	95,841		88,973
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,165		7,925
Gross Unrealized Gains	37		19
Gross Unrealized Losses	(84)		(155)
Fair Value	10,118		7,789
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,500		7,069
Gross Unrealized Gains	22		12
Gross Unrealized Losses	(14)		(40)
Fair Value	7,508		7,041
Foreign Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,512		4,514
Gross Unrealized Losses	(57)		(114)
Fair Value	4,455		4,400
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,083		2,617
Gross Unrealized Gains	269		266
Fair Value	3,352	[1]	2,883
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	133		182
Gross Unrealized Losses	(1)		(4)
Fair Value	$ 132		$ 178
[1]	Equity securities are preferred and common stock that may or may not have a stated maturity.

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands		Jun. 30, 2017		Dec. 31, 2016
Securities maturing within:
Less than 1 Year		$ 34,644
1 Year - 5 Years		100,174
5 Years - 10 Years		40,494
More than 10 Years		5,135
Fair Value		180,448		$ 174,388
U.S. Government and Federal Agency [Member]
Securities maturing within:
Less than 1 Year		22,353
1 Year - 5 Years		30,639
5 Years - 10 Years		1,956
Fair Value		54,948		59,052
U.S. Treasury Notes and Bonds [Member]
Securities maturing within:
1 Year - 5 Years		4,094
Fair Value		4,094		4,072
State and Municipal [Member]
Securities maturing within:
Less than 1 Year		9,360
1 Year - 5 Years		47,344
5 Years - 10 Years		36,353
More than 10 Years		2,784
Fair Value		95,841		88,973
Corporate [Member]
Securities maturing within:
Less than 1 Year		1,800
1 Year - 5 Years		5,206
5 Years - 10 Years		502
Fair Value		7,508		7,041
Foreign Debt [Member]
Securities maturing within:
Less than 1 Year		999
1 Year - 5 Years		3,456
Fair Value		4,455		4,400
Asset-backed Securities [Member]
Securities maturing within:
Less than 1 Year		132
Fair Value		132		178
Total Debt Securities [Member]
Securities maturing within:
Less than 1 Year		34,644
1 Year - 5 Years		90,739
5 Years - 10 Years		38,811
More than 10 Years		2,784
Fair Value		166,978		163,716
Mortgage-backed [Member]
Securities maturing within:
1 Year - 5 Years		9,435
5 Years - 10 Years		682
Fair Value		10,118		7,789
Equity Securities [Member]
Securities maturing within:
5 Years - 10 Years	[1]	1,001
More than 10 Years	[1]	2,351
Fair Value		$ 3,352	[1]	$ 2,883
[1]	Equity securities are preferred and common stock that may or may not have a stated maturity.

SECURITIES (Details 2)

SECURITIES (Details 2)	Jun. 30, 2017
U.S. Government and Federal Agency [Member]
Weighted average yields:
Less than 1 Year	1.92%
1 Year - 5 Years	1.56%
5 Years - 10 Years	1.78%
Total	1.71%
U.S. Treasury Notes and Bonds [Member]
Weighted average yields:
1 Year - 5 Years	1.54%
Total	1.54%
State and Municipal [Member]
Weighted average yields:
Less than 1 Year	2.93%	[1]
1 Year - 5 Years	3.11%	[1]
5 Years - 10 Years	3.45%	[1]
More than 10 Years	2.00%	[1]
Total	3.19%	[1]
Corporate [Member]
Weighted average yields:
Less than 1 Year	1.28%
1 Year - 5 Years	2.18%
Total	1.82%
Foreign Debt [Member]
Weighted average yields:
Less than 1 Year	1.10%
1 Year - 5 Years	1.44%
Total	1.37%
Asset-backed Securities [Member]
Weighted average yields:
Less than 1 Year	1.40%
Total	1.40%
Mortgage-backed [Member]
Weighted average yields:
1 Year - 5 Years	2.15%
5 Years - 10 Years	2.05%
Total	2.14%
Equity Securities [Member]
Weighted average yields:
5 Years - 10 Years	4.61%	[2]
More than 10 Years	0.96%	[2]
Total	2.05%	[2]
[1]	The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 34%.
[2]	Equity securities are preferred and common stock that may or may not have a stated maturity.

SECURITIES (Details Narrative)

SECURITIES (Details Narrative)	6 Months Ended
	Jun. 30, 2017
State and Municipal [Member]
Incremental tax rate	3.40%

LOANS AND ALLOWANCE FOR LOAN 27

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Allowance for Loan Losses
Beginning balance	$ 4,325	$ 4,124	$ 4,277	$ 4,194
Charge-offs	(409)	(29)	(533)	(170)
Recoveries	157	201	329	272
Provision	25	0	25	0
Ending balance	4,098	4,296	4,098	4,296
Individually evaluated for impairment	367	564	367	564
Collectively evaluated for impairment	3,731	3,732	3,731	3,732
Loans
Individually evaluated for impairment	4,383		4,383		$ 4,911
Collectively evaluated for impairment	375,065		375,065		364,089
Loans	379,448		379,448		369,000
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	406	382	433	420
Provision	(11)	18	(38)	(20)
Ending balance	395	400	395	400
Individually evaluated for impairment		11		11
Collectively evaluated for impairment	395	389	395	389
Loans
Individually evaluated for impairment	442		442		526
Collectively evaluated for impairment	41,303		41,303		44,088
Loans	41,745		41,745		44,614
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	745	691	688	586
Charge-offs	(352)		(362)	(33)
Recoveries		8		23
Provision	511	(42)	578	81
Ending balance	904	657	904	657
Individually evaluated for impairment	27	11	27	11
Collectively evaluated for impairment	877	646	877	646
Loans
Individually evaluated for impairment	309		309		301
Collectively evaluated for impairment	101,185		101,185		95,787
Loans	101,494		101,494		96,088
Consumer [Member]
Allowance for Loan Losses
Beginning balance	286	272	305	297
Charge-offs	(57)	(29)	(137)	(68)
Recoveries	39	28	91	69
Provision	26	6	35	(21)
Ending balance	294	277	294	277
Individually evaluated for impairment	4	1	4	1
Collectively evaluated for impairment	290	276	290	276
Loans
Individually evaluated for impairment	30		30		28
Collectively evaluated for impairment	23,373		23,373		21,568
Loans	23,403		23,403		21,596
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,414	1,138	1,438	1,030
Recoveries	49	23	161	31
Provision	88	(28)	(48)	72
Ending balance	1,551	1,133	1,551	1,133
Individually evaluated for impairment	65	177	65	177
Collectively evaluated for impairment	1,486	956	1,486	956
Loans
Individually evaluated for impairment	887		887		1,073
Collectively evaluated for impairment	116,065		116,065		109,689
Loans	116,952		116,952		110,762
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	23	43	62	46
Recoveries	40		40
Provision	(39)	2	(78)	(2)
Ending balance	24	45	24	45
Collectively evaluated for impairment	24	45	24	45
Loans
Collectively evaluated for impairment	5,437		5,437		6,153
Loans	5,437		5,437		6,153
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	727	1,350	1,014	1,388
Charge-offs			(34)	(69)
Recoveries	29	142	37	149
Provision	(7)	(270)	(268)	(246)
Ending balance	749	1,222	749	1,222
Individually evaluated for impairment	271	364	271	364
Collectively evaluated for impairment	478	858	478	858
Loans
Individually evaluated for impairment	2,715		2,715		2,983
Collectively evaluated for impairment	87,702		87,702		86,804
Loans	90,417		90,417		$ 89,787
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	724	249	337	427
Provision	(543)	315	(156)	136
Ending balance	181	563	181	563
Collectively evaluated for impairment	$ 181	$ 563	$ 181	$ 563

LOANS AND ALLOWANCE FOR LOAN 28

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 379,448	$ 369,000
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	41,745	44,614
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	11,046	12,005
Agricultural [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	22,173	23,852
Agricultural [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,715	7,505
Agricultural [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	369	726
Agricultural [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	442	526
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	101,494	96,088
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	12,442	12,135
Commercial and Industrial [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	60,843	56,714
Commercial and Industrial [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	27,402	25,895
Commercial and Industrial [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	515	1,267
Commercial and Industrial [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	292	77
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	116,952	110,762
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	6,741	8,013
Commercial Real Estate [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	69,070	59,343
Commercial Real Estate [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	37,610	39,641
Commercial Real Estate [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,904	1,867
Commercial Real Estate [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 1,627	$ 1,898

LOANS AND ALLOWANCE FOR LOAN 29

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 379,448	$ 369,000
Nonaccrual past due loans	1,425	1,983
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	23,403	21,596
Nonaccrual past due loans	5	6
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	23,392	21,590
Consumer [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	6
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	5,437	6,153
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	5,437	6,153
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	90,417	89,787
Nonaccrual past due loans	444	791
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	89,469	88,767
Residential Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 504	$ 229

LOANS AND ALLOWANCE FOR LOAN 30

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2017USD ($)
Financing Receivable, Modifications [Line Items]
Number of Loans	2	4
Pre-Modification Outstanding Recorded Investment	$ 150	$ 307
Post Modification Oustanding Recorded Investment	$ 150	$ 307
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans		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	2	3
Pre-Modification Outstanding Recorded Investment	$ 150	$ 179
Post Modification Oustanding Recorded Investment	$ 150	$ 179

LOANS AND ALLOWANCE FOR LOAN 31

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	$ 888	$ 1,331
Unpaid Principal Balance with no related allowance recorded	1,037	1,923
Recorded Investment with an allowance recorded	3,495	3,580
Unpaid Principal Balance with an allowance recorded	3,836	3,682
Related Allowance	367	403
Recorded Investment	4,383	4,911
Unpaid Principal Balance	4,873	5,605
Agricultural [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	442	482
Unpaid Principal Balance with no related allowance recorded	461	485
Recorded Investment with an allowance recorded		44
Unpaid Principal Balance with an allowance recorded		44
Related Allowance		3
Recorded Investment	442	526
Unpaid Principal Balance	461	529
Commercial and Industrial [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	176	206
Unpaid Principal Balance with no related allowance recorded	176	207
Recorded Investment with an allowance recorded	133	95
Unpaid Principal Balance with an allowance recorded	374	95
Related Allowance	27	11
Recorded Investment	309	301
Unpaid Principal Balance	550	302
Consumer [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with an allowance recorded	30	28
Unpaid Principal Balance with an allowance recorded	30	28
Related Allowance	4	2
Recorded Investment	30	28
Unpaid Principal Balance	30	28
Commercial Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	97	342
Unpaid Principal Balance with no related allowance recorded	227	939
Recorded Investment with an allowance recorded	790	731
Unpaid Principal Balance with an allowance recorded	868	804
Related Allowance	65	91
Recorded Investment	887	1,073
Unpaid Principal Balance	1,095	1,743
Residential Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	173	301
Unpaid Principal Balance with no related allowance recorded	173	292
Recorded Investment with an allowance recorded	2,542	2,682
Unpaid Principal Balance with an allowance recorded	2,564	2,711
Related Allowance	271	296
Recorded Investment	2,715	2,983
Unpaid Principal Balance	$ 2,737	$ 3,003

LOANS AND ALLOWANCE FOR LOAN 32

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 1,893	$ 2,424
Loans Not Past Due		377,555	366,576
Loans		379,448	369,000
Loans 90 Days Past Due and Accruing		510	229
Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	884	1,157
30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		381	1,126
60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		628	141
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due		41,745	44,614
Loans		41,745	44,614
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		308	275
Loans Not Past Due		101,186	95,813
Loans		101,494	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] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		73
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		85	107
Loans Not Past Due		23,318	21,489
Loans		23,403	21,596
Loans 90 Days Past Due and Accruing		6
Consumer [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	6	6
Consumer [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		30	99
Consumer [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		49	2
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		130	260
Loans Not Past Due		116,822	110,502
Loans		116,952	110,762
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	24	260
Commercial Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		106
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due		5,437	6,153
Loans		5,437	6,153
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,370	1,782
Loans Not Past Due		89,047	88,005
Loans		90,417	89,787
Loans 90 Days Past Due and Accruing		504	229
Residential Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	619	646
Residential Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		172	1,027
Residential Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 579	$ 109
[1]	Includes nonaccrual loans.

LOANS AND ALLOWANCE FOR LOAN 33

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 1,425	$ 1,983
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	442	482
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	285	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	250	458
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 444	$ 791

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic Earnings Per Share
Net income available to common shareholders	$ 1,635	$ 1,445	$ 3,081	$ 2,719
Weighted average common shares outstanding	3,449,800	3,464,828	3,446,409	3,462,939
Basic earnings per share	$ 0.47	$ 0.41	$ 0.89	$ 0.78
Diluted Earnings Per Share
Net income available to common shareholders	$ 1,635	$ 1,445	$ 3,081	$ 2,719
Weighted average common shares outstanding	3,449,800	3,464,828	3,446,409	3,462,939
Plus dilutive stock options and restricted stock units	4,049	5,437	3,482	5,550
Weighted average common shares outstanding and potentially dilutive shares	3,453,849	3,470,265	3,449,891	3,468,489
Diluted earnings per share	$ 0.47	$ 0.41	$ 0.89	$ 0.78

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Stock dividend declared			5.00%
Dilutive stock options excluded in calculation of earnings per share	31,500	30,000	47,250	30,000

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Securities available for sale	$ 180,448	$ 174,388
Loans to other financial institutions	4,162
Liabilities:
Noninterest-bearing deposits	133,956	127,611
Interest-bearing deposits	390,388	384,775
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Cash and due from banks	17,050	14,809
Securities available for sale	1,852	1,383
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Securities available for sale	163,738	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	133,956	127,611
Interest-bearing deposits	389,473	383,879
Repurchase agreements	2,302	7,913
Federal Home Loan Bank advances	24,308	12,323
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Securities available for sale	14,858	15,103
Loans held for sale	2,051
Loans to other financial institutions	4,162
Loans, net	382,827	365,780
Carrying Amount [Member]
Assets:
Cash and due from banks	17,050	14,809
Securities available for sale	180,448	174,388
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	1,990	1,974
Loans to other financial institutions	4,162
Loans, net	375,350	364,723
Liabilities:
Noninterest-bearing deposits	133,956	127,611
Interest-bearing deposits	390,388	384,775
Repurchase agreements	2,302	7,913
Federal Home Loan Bank advances	24,284	12,301
Estimated Fair Value [Member]
Assets:
Cash and due from banks	17,050	14,809
Securities available for sale	180,448	174,388
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	2,051	2,044
Loans to other financial institutions	4,162
Loans, net	382,827	365,780
Liabilities:
Noninterest-bearing deposits	133,956	127,611
Interest-bearing deposits	389,473	383,879
Repurchase agreements	2,302	7,913
Federal Home Loan Bank advances	$ 24,308	$ 12,323

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2017		Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 180,448		$ 174,388
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	3,352	[1]	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	4,094		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	54,948		59,052
State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	95,841		88,973
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,118		7,789
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,508		7,041
Foreign Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	4,455		4,400
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	132		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	1,852		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	163,738		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	14,858		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	180,448		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	3,352		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	4,094		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	54,948		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	95,841		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	10,118		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	7,508		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	4,455		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	132		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	1,852		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	1,852		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	163,738		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	4,094		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	54,948		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	82,483		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	10,118		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	7,508		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	4,455		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	132		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	14,858		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	$ 13,358		$ 13,603
[1]	Equity securities are preferred and common stock that may or may not have a stated maturity.

FAIR VALUE MEASUREMENTS (Deta38

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 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	$ 162	$ 187
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 unrealized gains (losses) included in other comprehensive income	162	(187)
Net purchases, sales, calls, and maturities	(407)	387
Balance at the end of year	$ 14,858	$ 11,999

FAIR VALUE MEASUREMENTS (Deta39

FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 4,383	$ 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	4,383	4,911
Other real estate owned, net	$ 472	$ 437

FAIR VALUE MEASUREMENTS (Deta40

FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Total unrealized gains (losses) included in other comprehensive income	$ 162	$ 187
Purchased during period	0	750
Securities matured or were called	401	182
Principal paydowns	$ 6	$ 181