ChoiceOne Financial Services (COFS) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 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	Sep. 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		3,451,987
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 12,725	$ 14,809
Securities available for sale (Note 2)	173,306	174,388
Federal Home Loan Bank stock	1,994	1,994
Federal Reserve Bank stock	1,573	1,573
Loans held for sale	2,378	1,974
Loans to other financial institutions	13,293
Loans (Note 3)	394,090	369,000
Allowance for loan losses (Note 3)	(4,216)	(4,277)
Loans, net	389,874	364,723
Premises and equipment, net	12,271	12,588
Cash surrender value of life insurance policies	14,415	14,117
Goodwill	13,728	13,728
Other assets	6,495	7,477
Total assets	642,052	607,371
Liabilities
Deposits - noninterest-bearing	136,542	127,611
Deposits - interest-bearing	389,296	384,775
Total deposits	525,838	512,386
Federal funds purchased	2,650
Repurchase agreements	3,794	7,913
Advances from Federal Home Loan Bank	30,276	12,301
Other liabilities	3,188	3,073
Total liabilities	565,746	535,673
Shareholders' Equity
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,451,445 at September 30, 2017 and 3,277,944 at December 31, 2016	50,307	46,299
Retained earnings	25,281	25,997
Accumulated other comprehensive income (loss), net	718	(598)
Total shareholders' equity	76,306	71,698
Total liabilities and shareholders' equity	$ 642,052	$ 607,371

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 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	3,451,445	3,277,944

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest income
Loans, including fees		$ 4,592	$ 4,210	$ 13,157	$ 12,293
Securities:
Taxable		651	594	1,935	1,731
Tax exempt		355	358	1,068	1,088
Other		26	5	50	14
Total interest income		5,624	5,167	16,210	15,126
Interest expense
Deposits		320	190	860	599
Advances from Federal Home Loan Bank		62	44	169	119
Other		3	2	10	7
Total interest expense		385	236	1,039	725
Net interest income		5,239	4,931	15,171	14,401
Provision for loan losses		95		120
Net interest income after provision for loan losses		5,144	4,931	15,051	14,401
Noninterest income
Customer service charges		1,058	1,030	3,081	3,020
Insurance and investment commissions		260	290	760	740
Gains on sales of loans		355	508	920	1,345
Gains on sales of securities		51	28	177	255
(Losses) gains on sales and write-downs of other assets		17	(3)	21	(26)
Earnings on life insurance policies		101	88	299	265
Other		141	124	399	360
Total noninterest income		1,983	2,065	5,657	5,959
Noninterest expense
Salaries and benefits		2,619	2,542	7,725	7,519
Occupancy and equipment		702	626	2,099	1,959
Data processing		551	556	1,681	1,654
Professional fees		287	232	778	700
Supplies and postage		102	92	293	312
Advertising and promotional		58	52	185	184
Intangible amortization			112		336
FDIC insurance		51	78	151	218
Other		421	379	1,327	1,485
Total noninterest expense		4,791	4,669	14,239	14,367
Income before income tax		2,336	2,327	6,470	5,993
Income tax expense		616	644	1,668	1,591
Net income		$ 1,720	$ 1,683	$ 4,801	$ 4,402
Basic earnings per share (Note 4) (in dollars per share)	[1]	$ 0.50	$ 0.50	$ 1.39	$ 1.28
Diluted earnings per share (Note 4) (in dollars per share)	[1]	0.50	0.50	1.39	1.28
Dividends declared per share (in dollars per share)	[1]	$ 0.17	$ 0.16	$ 0.50	$ 0.49
[1]	Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017.

CONSOLIDATED STATEMENTS OF INC5

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	9 Months Ended
	Sep. 30, 2017
Income Statement [Abstract]
Stock dividend paid	5.00%

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 1,720	$ 1,683	$ 4,801	$ 4,402
Other comprehensive income:
Changes in net unrealized gains (loss) on investment securities available for sale, net of tax expense of $(171) and $35 for the three months ended September 30, 2017 and September 30, 2016 respectively. Changes in net unrealized gains on investment securities available for sale, net of tax expense of $738 and $747 for the nine months ended September 30, 2017 and September 30, 2016 respectively.	(333)	68	1,433	1,450
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax benefit of $17 and $9 for the three months ended September 30, 2017 and September 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 $60 and $87 for the nine months ended September 30, 2017 and September 30, 2016 respectively.	(34)	(19)	(117)	(168)
Other comprehensive income, net of tax	(367)	49	1,316	1,282
Comprehensive income	$ 1,353	$ 1,732	$ 6,117	$ 5,684

CONSOLIDATED STATEMENTS OF COM7

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Unrealized holding gains on available for sale securities, tax expense (benefit)	$ (171)	$ 35	$ 738	$ 747
Reclassification adjustment for gain recognized in net income, tax expense (benefit)	$ 17	$ 9	$ 60	$ 87

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			4,402		4,402
Other comprehensive income				1,282	1,282
Shares issued		$ 137			137
Shares issued (in shares)		11,559
Shares repurchased		$ (794)			(794)
Shares repurchased (in shares)		(35,000)
Change in ESOP repurchase obligation		$ 127			127
Effect of employee stock purchases		9			9
Stock-based compensation expense		$ 248			248
Stock-based compensation expense (in shares)		3,414
Cash dividends declared ($0.50 and $0.49 per share for the nine months ended September 30, 2017 and September 30, 2016 respectively)	[1]		(1,674)		(1,674)
Balance, ending at Sep. 30, 2016		$ 46,228	24,866	2,485	73,579
Balance, ending (in shares) at Sep. 30, 2016		3,275,201
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			4,801		$ 4,801
Other comprehensive income				1,316	1,316
Shares issued		$ 115			115
Shares issued (in shares)		7,115
Shares repurchased		$ (88)			(88)
Shares repurchased (in shares)		(3,800)
Effect of employee stock purchases		$ 9			9
Stock-based compensation expense		180			180
Stock options exercised		$ 13			13
Stock options exercised (in shares)		1,000
Restricted stock units issued (in shares)		5,197
Stock dividend declared (5%)		$ 3,779	(3,779)
Stock dividend declared (5%) (in shares)		163,989
Cash dividends declared ($0.50 and $0.49 per share for the nine months ended September 30, 2017 and September 30, 2016 respectively)			(1,738)		(1,738)
Balance, ending at Sep. 30, 2017		$ 50,307	$ 25,281	$ 718	$ 76,306
Balance, ending (in shares) at Sep. 30, 2017		3,451,445			3,451,445
[1]	Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017.

CONSOLIDATED STATEMENTS OF CHA9

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2017$ / shares
Statement of Stockholders' Equity [Abstract]
Cash dividend declared, per share	$ 0.50	[1]
Stock dividend declared	5.00%
Stock dividend paid	5.00%
[1]	Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 4,801	$ 4,402
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	120
Depreciation	944	757
Amortization	814	1,199
Compensation expense on stock purchases and restricted stock units	241	257
Gains on sales of securities	(177)	(255)
Gains on sales of loans	(920)	(1,345)
Loans originated for sale	(28,356)	(39,173)
Proceeds from loan sales	27,922	42,313
Earnings on bank-owned life insurance	(299)	(265)
Gains on sales of other real estate owned	(10)	3
Proceeds from sales of other real estate owned	579	28
Deferred federal income tax benefit	(29)	(86)
Net changes in other assets	572	(135)
Net changes in other liabilities	(532)	481
Net cash from operating activities	5,670	8,181
Securities available for sale:
Sales	22,521	14,538
Maturities, prepayments and calls	14,163	33,412
Purchases	(33,998)	(63,780)
Loan originations and payments, net	(38,235)	(13,700)
Additions to premises and equipment	(413)	(1,112)
Net cash from investing activities	(35,962)	(30,642)
Cash flows from financing activities:
Net change in deposits	13,452	2,691
Net change in repurchase agreements	(4,119)	(3,043)
Net change in federal funds purchased	2,650	624
Proceeds from Federal Home Loan Bank advances	166,500	271,000
Payments on Federal Home Loan Bank advances	(148,525)	(245,023)
Issuance of common stock	76	137
Repurchase of common stock	(88)	(794)
Cash dividends	(1,738)	(1,674)
Net cash from financing activities	28,208	23,918
Net change in cash and cash equivalents	(2,084)	1,457
Beginning cash and cash equivalents	14,809	11,187
Ending cash and cash equivalents	12,725	12,644
Supplemental disclosures of cash flow information:
Cash paid for interest	1,029	726
Cash paid for taxes	1,150	925
Loans transferred to other real estate owned	$ 314	$ 483

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 U.S. generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2017 and September 30, 2016, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2017 and September 30, 2016. Operating results for the nine months ended September 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 3,881 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $89,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first three quarters of 2017. A total of 3,234 shares of common stock were issued to employees for a cash price of $62,000 under the Employee Stock Purchase Plan in the first nine months of 2017. A total of 5,197 shares of common stock were issued to employees for Restricted Stock Units that vested during the first nine 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. Revenue Recognition The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation.

SECURITIES

SECURITIES	9 Months Ended
	Sep. 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: September 30, 2017 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 51,086 $ 11 $ (444 ) $ 50,653 U.S. Treasury 4,025 — (10 ) 4,015 State and municipal 94,360 1,459 (224 ) 95,595 Mortgage-backed 9,501 17 (98 ) 9,420 Corporate 5,696 16 (17 ) 5,695 Foreign debt 4,512 — (72 ) 4,440 Equity securities 3,083 294 — 3,377 Asset-backed securities 112 — (1 ) 111 Total $ 172,375 $ 1,797 $ (866 ) $ 173,306 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 nine months ended September 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 September 30, 2017, the fair value of securities as of September 30, 2017 and December 31, 2016, and the weighted average yields of securities as of September 30, 2017: Securities maturing within: (Dollars in thousands) Less than 1 Year 1 Year - 5 Years 5 Years - 10 Years More than 10 Years Fair Value at September 30, 2017 Fair Value at Dec. 31, 2016 U.S. Government and federal agency $ 20,250 $ 28,460 $ 1,943 $ — $ 50,653 $ 59,052 U.S. Treasury notes and bonds — 4,015 — — 4,015 4,072 State and municipal 8,362 47,395 36,016 3,822 95,595 88,973 Corporate 5,302 393 — — 5,695 7,041 Foreign debt securities 1,000 3,440 — — 4,440 4,400 Asset-backed securities 111 — — — 111 178 Total debt securities 35,025 83,703 37,959 3,822 160,509 163,716 Mortgage-backed securities — 9,330 90 — 9,420 7,789 Equity securities (1) — — 1,000 2,377 3,377 2,883 Total $ 35,025 $ 93,033 $ 39,049 $ 6,199 $ 173,306 $ 174,388 (1) 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	9 Months Ended
	Sep. 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 Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2017 Beginning balance $ 395 $ 904 $ 294 $ 1,551 $ 25 $ 748 $ 181 $ 4,098 Charge-offs — (12 ) (52 ) — — (9 ) — (73 ) Recoveries — 4 16 65 — 11 — 96 Provision (1 ) (98 ) 1 (152 ) 1 (140 ) 484 95 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Nine Months Ended September 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (374 ) (189 ) — — (44 ) — (607 ) Recoveries — 4 107 226 40 49 — 426 Provision (39 ) 480 36 (200 ) (76 ) (409 ) 328 120 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Individually evaluated for impairment $ — $ 5 $ 4 $ 54 $ — $ 228 $ — $ 291 Collectively evaluated for impairment $ 394 $ 793 $ 255 $ 1,410 $ 26 $ 382 $ 665 $ 3,925 Three Months Ended September 30, 2016 Beginning balance $ 399 $ 656 $ 279 $ 1,133 $ 44 $ 1,222 $ 563 $ 4,296 Charge-offs — — (68 ) — — (25 ) — (93 ) Recoveries — 8 49 5 — 11 — 73 Provision (11 ) (55 ) 30 340 (3 ) (205 ) (96 ) — Ending balance $ 388 $ 609 $ 290 $ 1,478 $ 41 $ 1,003 $ 467 $ 4,276 Nine Months Ended September 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (136 ) — — (94 ) — (263 ) Recoveries — 31 119 35 — 160 — 345 Provision (32 ) 26 10 412 (5 ) (451 ) 40 — Ending balance $ 388 $ 610 $ 290 $ 1,477 $ 41 $ 1,003 $ 467 $ 4,276 Individually evaluated for impairment $ 4 $ 8 $ 1 $ 167 $ — $ 321 $ — $ 501 Collectively evaluated for impairment $ 384 $ 602 $ 289 $ 1,310 $ 41 $ 682 $ 467 $ 3,775 Loans September 30, 2017 Individually evaluated for impairment $ 424 $ 192 $ 34 $ 936 $ — $ 2,472 $ 4,058 Collectively evaluated for Impairment 45,682 101,244 23,977 122,480 7,298 89,351 390,032 Ending balance $ 46,106 $ 101,436 $ 24,011 $ 123,416 $ 7,298 $ 91,823 $ 394,090 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) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 12,488 $ 12,005 $ 12,691 $ 12,135 $ 8,069 $ 8,013 Risk rating 3 23,957 23,852 64,953 56,714 72,370 59,343 Risk rating 4 8,865 7,505 23,141 25,895 39,920 39,641 Risk rating 5 373 726 484 1,267 1,530 1,867 Risk rating 6 423 526 167 77 1,527 1,898 Risk rating 7 — — — — — — $ 46,106 $ 44,614 $ 101,436 $ 96,088 $ 123,416 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 23,995 $ 21,590 $ 7,298 $ 6,153 $ 91,252 $ 88,767 Nonperforming — — — — 132 229 Nonaccrual 16 6 — — 439 791 $ 24,011 $ 21,596 $ 7,298 $ 6,153 $ 91,823 $ 89,787 There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three- and nine-month periods ended September 30, 2017. The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2016: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial Real estate — $ — $ — 1 $ 113 $ 113 Residential Real Estate — — — 2 156 156 Total — $ — $ — 3 $ 269 $ 269 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. There were no TDRs as of September 30, 2017 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2017 that had been modified during the year prior to the default. The following schedule provides information on TDRs as of September 30, 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2016 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate — $ — 1 $ 113 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 September 30, 2017 and 2016 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized September 30, 2017 With no related allowance recorded Agricultural $ 424 $ 455 $ — $ 288 $ — Commercial and industrial 58 69 — 137 — Consumer — — — — — Commercial real estate 113 245 — 104 — Residential real estate 136 147 — 103 — Subtotal 731 916 — 632 — With an allowance recorded Agricultural — — — 161 — Commercial and industrial 134 134 5 195 1 Consumer 34 35 4 33 1 Commercial real estate 823 904 54 884 26 Residential real estate 2,336 2,354 228 2,475 75 Subtotal 3,327 3,427 291 3,748 103 Agricultural 424 455 — 449 — Commercial and industrial 192 203 5 332 1 Consumer 34 35 4 33 1 Commercial real estate 936 1,149 54 988 26 Residential real estate 2,472 2,501 228 2,578 75 Total $ 4,058 $ 4,343 $ 291 $ 4,380 $ 103 September 30, 2016 With no related allowance recorded Agricultural $ 489 $ 493 $ — $ 154 $ (1 ) Commercial and industrial 177 177 — 63 — Consumer 5 5 — 1 — Commercial real estate 230 351 — 1,071 33 Residential real estate 266 266 — 134 46 Subtotal 1,167 1,292 — 1,423 78 With an allowance recorded Agricultural 45 45 4 79 16 Commercial and industrial 273 247 8 242 4 Consumer 21 21 1 22 3 Commercial real estate 1,229 1,799 167 1,426 116 Residential real estate 2,843 2,859 321 2,670 308 Subtotal 4,411 4,971 501 4,439 447 Agricultural 534 538 4 233 15 Commercial and industrial 449 424 8 305 4 Consumer 26 26 1 23 3 Commercial real estate 1,459 2,150 167 2,497 149 Residential real estate 3,110 3,125 321 2,804 354 Total $ 5,578 $ 6,263 $ 501 $ 5,862 $ 525 An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing September 30, 2017 Agricultural $ — $ — $ 83 $ 83 $ 46,023 $ 46,106 $ — Commercial and industrial — — 58 58 101,378 101,436 — Consumer 132 1 11 144 23,867 24,011 — Commercial real estate — — 113 113 123,303 123,416 — Construction real estate — — — — 7,298 7,298 — Residential real estate 625 24 221 870 90,953 91,823 132 $ 757 $ 25 $ 486 $ 1,268 $ 392,822 $ 394,090 $ 132 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) September 30, December 31, 2017 2016 Agricultural $ 423 $ 482 Commercial and industrial 59 245 Consumer 17 6 Commercial real estate 211 458 Construction real estate — — Residential real estate 439 792 $ 1,149 $ 1,983

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 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: (Dollars in thousands, except per share data) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Basic earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28 Diluted Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Plus dilutive stock options and restricted stock units 6,370 4,146 4,744 4,380 Weighted average common shares outstanding and potentially dilutive shares 3,458,648 3,443,780 3,453,085 3,459,520 Diluted earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28 Note that 2016 share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017. There were 31,500 stock options for the three months ended September 30, 2017 and 32,550 for the three months ended September 30, 2016 with an exercise price more than the average market price which have been excluded from the calculation of diluted earnings above.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2017
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS	NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: (Dollars in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2017 Assets: Cash and due from banks $ 12,725 $ 12,725 $ 12,725 $ — $ — Securities available for sale 173,306 173,306 1,877 157,886 13,543 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 2,378 2,451 — 2,451 — Loans to other financial institutions 13,293 13,699 — — 13,699 Loans, net 389,874 391,408 — — 391,408 Liabilities: Noninterest-bearing deposits 136,542 136,542 — 136,542 — Interest-bearing deposits 389,296 388,603 — 388,603 — Federal funds purchased 2,650 2,650 — 2,650 — Repurchase agreements 3,794 3,794 — 3,794 — Federal Home Loan Bank advances 30,276 30,298 — 30,298 — 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 September 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 September 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	9 Months Ended
	Sep. 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 September 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 in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Date Indicated Investment Securities, Available for Sale – September 30, 2017 U.S. Treasury notes and bonds $ — $ 4,015 $ — $ 4,015 U.S. Government and federal agency — 50,653 — 50,653 State and municipal — 83,552 12,043 95,595 Mortgage-backed — 9,420 — 9,420 Corporate — 5,695 — 5,695 Foreign debt — 4,440 — 4,440 Equity securities 1,877 — 1,500 3,377 Asset backed securities — 111 — 111 Total $ 1,877 $ 157,886 $ 13,543 $ 173,306 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 271 131 Net purchases, sales, calls, and maturities (1,831 ) 2,598 Net transfers into Level 3 — — Balance, September 30 $ 13,543 $ 14,528 Of the Level 3 assets that were held by the Bank at September 30, 2017, the net unrealized gain for the nine months ended September 30, 2017 was $271,000, which is recognized in other comprehensive income in the consolidated balance sheet . . 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 (Dollars in thousands) Balance at Dates Indicated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans September 30, 2017 $ 4,058 $ — $ — $ 4,058 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate September 30, 2017 $ 182 $ — $ — $ 182 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
Subsequent Events
SUBSEQUENT EVENTS	NOTE 7 – SUBSEQUENT EVENTS On October 3, 2017 ChoiceOne Insurance Agencies Inc (“the Agency”) entered into an agreement with Ridgetown Investments LLC (“Ridgetown”), to sell a portion of the investment book of business previously managed by the Agency. Per the agreement, Ridgetown agreed to pay $908,000 to the Agency for future revenue generated by the book of business. This transaction would result in a $908,000 gain which will be reported in the fourth quarter of 2017.

SUMMARY OF SIGNIFICANT ACCOUN18

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 U.S. generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2017 and September 30, 2016, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2017 and September 30, 2016. Operating results for the nine months ended September 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 3,881 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $89,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first three quarters of 2017. A total of 3,234 shares of common stock were issued to employees for a cash price of $62,000 under the Employee Stock Purchase Plan in the first nine months of 2017. A total of 5,197 shares of common stock were issued to employees for Restricted Stock Units that vested during the first nine 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.
Revenue Recognition	Revenue Recognition The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606)
Reclassifications	Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation.

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 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: September 30, 2017 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 51,086 $ 11 $ (444 ) $ 50,653 U.S. Treasury 4,025 — (10 ) 4,015 State and municipal 94,360 1,459 (224 ) 95,595 Mortgage-backed 9,501 17 (98 ) 9,420 Corporate 5,696 16 (17 ) 5,695 Foreign debt 4,512 — (72 ) 4,440 Equity securities 3,083 294 — 3,377 Asset-backed securities 112 — (1 ) 111 Total $ 172,375 $ 1,797 $ (866 ) $ 173,306 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
Schedule of maturities of securities and the weighted average yields of securities	Presented below is a schedule of maturities of securities as of September 30, 2017, the fair value of securities as of September 30, 2017 and December 31, 2016, and the weighted average yields of securities as of September 30, 2017: Securities maturing within: (Dollars in thousands) Less than 1 Year 1 Year - 5 Years 5 Years - 10 Years More than 10 Years Fair Value at September 30, 2017 Fair Value at Dec. 31, 2016 U.S. Government and federal agency $ 20,250 $ 28,460 $ 1,943 $ — $ 50,653 $ 59,052 U.S. Treasury notes and bonds — 4,015 — — 4,015 4,072 State and municipal 8,362 47,395 36,016 3,822 95,595 88,973 Corporate 5,302 393 — — 5,695 7,041 Foreign debt securities 1,000 3,440 — — 4,440 4,400 Asset-backed securities 111 — — — 111 178 Total debt securities 35,025 83,703 37,959 3,822 160,509 163,716 Mortgage-backed securities — 9,330 90 — 9,420 7,789 Equity securities (1) — — 1,000 2,377 3,377 2,883 Total $ 35,025 $ 93,033 $ 39,049 $ 6,199 $ 173,306 $ 174,388 (1) Equity securities are preferred and common stock that may or may not have a stated maturity.

LOANS AND ALLOWANCE FOR LOAN 20

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
	Sep. 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 Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2017 Beginning balance $ 395 $ 904 $ 294 $ 1,551 $ 25 $ 748 $ 181 $ 4,098 Charge-offs — (12 ) (52 ) — — (9 ) — (73 ) Recoveries — 4 16 65 — 11 — 96 Provision (1 ) (98 ) 1 (152 ) 1 (140 ) 484 95 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Nine Months Ended September 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (374 ) (189 ) — — (44 ) — (607 ) Recoveries — 4 107 226 40 49 — 426 Provision (39 ) 480 36 (200 ) (76 ) (409 ) 328 120 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Individually evaluated for impairment $ — $ 5 $ 4 $ 54 $ — $ 228 $ — $ 291 Collectively evaluated for impairment $ 394 $ 793 $ 255 $ 1,410 $ 26 $ 382 $ 665 $ 3,925 Three Months Ended September 30, 2016 Beginning balance $ 399 $ 656 $ 279 $ 1,133 $ 44 $ 1,222 $ 563 $ 4,296 Charge-offs — — (68 ) — — (25 ) — (93 ) Recoveries — 8 49 5 — 11 — 73 Provision (11 ) (55 ) 30 340 (3 ) (205 ) (96 ) — Ending balance $ 388 $ 609 $ 290 $ 1,478 $ 41 $ 1,003 $ 467 $ 4,276 Nine Months Ended September 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (136 ) — — (94 ) — (263 ) Recoveries — 31 119 35 — 160 — 345 Provision (32 ) 26 10 412 (5 ) (451 ) 40 — Ending balance $ 388 $ 610 $ 290 $ 1,477 $ 41 $ 1,003 $ 467 $ 4,276 Individually evaluated for impairment $ 4 $ 8 $ 1 $ 167 $ — $ 321 $ — $ 501 Collectively evaluated for impairment $ 384 $ 602 $ 289 $ 1,310 $ 41 $ 682 $ 467 $ 3,775 Loans September 30, 2017 Individually evaluated for impairment $ 424 $ 192 $ 34 $ 936 $ — $ 2,472 $ 4,058 Collectively evaluated for Impairment 45,682 101,244 23,977 122,480 7,298 89,351 390,032 Ending balance $ 46,106 $ 101,436 $ 24,011 $ 123,416 $ 7,298 $ 91,823 $ 394,090 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) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 12,488 $ 12,005 $ 12,691 $ 12,135 $ 8,069 $ 8,013 Risk rating 3 23,957 23,852 64,953 56,714 72,370 59,343 Risk rating 4 8,865 7,505 23,141 25,895 39,920 39,641 Risk rating 5 373 726 484 1,267 1,530 1,867 Risk rating 6 423 526 167 77 1,527 1,898 Risk rating 7 — — — — — — $ 46,106 $ 44,614 $ 101,436 $ 96,088 $ 123,416 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 23,995 $ 21,590 $ 7,298 $ 6,153 $ 91,252 $ 88,767 Nonperforming — — — — 132 229 Nonaccrual 16 6 — — 439 791 $ 24,011 $ 21,596 $ 7,298 $ 6,153 $ 91,823 $ 89,787
Schedule of troubled debt restructurings	There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three- and nine-month periods ended September 30, 2017. The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2016: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial Real estate — $ — $ — 1 $ 113 $ 113 Residential Real Estate — — — 2 156 156 Total — $ — $ — 3 $ 269 $ 269 There were no TDRs as of September 30, 2017 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2017 that had been modified during the year prior to the default. The following schedule provides information on TDRs as of September 30, 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2016 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate — $ — 1 $ 113
Schedule of impaired loans	Impaired loans by loan category as of September 30, 2017 and 2016 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized September 30, 2017 With no related allowance recorded Agricultural $ 424 $ 455 $ — $ 288 $ — Commercial and industrial 58 69 — 137 — Consumer — — — — — Commercial real estate 113 245 — 104 — Residential real estate 136 147 — 103 — Subtotal 731 916 — 632 — With an allowance recorded Agricultural — — — 161 — Commercial and industrial 134 134 5 195 1 Consumer 34 35 4 33 1 Commercial real estate 823 904 54 884 26 Residential real estate 2,336 2,354 228 2,475 75 Subtotal 3,327 3,427 291 3,748 103 Agricultural 424 455 — 449 — Commercial and industrial 192 203 5 332 1 Consumer 34 35 4 33 1 Commercial real estate 936 1,149 54 988 26 Residential real estate 2,472 2,501 228 2,578 75 Total $ 4,058 $ 4,343 $ 291 $ 4,380 $ 103 September 30, 2016 With no related allowance recorded Agricultural $ 489 $ 493 $ — $ 154 $ (1 ) Commercial and industrial 177 177 — 63 — Consumer 5 5 — 1 — Commercial real estate 230 351 — 1,071 33 Residential real estate 266 266 — 134 46 Subtotal 1,167 1,292 — 1,423 78 With an allowance recorded Agricultural 45 45 4 79 16 Commercial and industrial 273 247 8 242 4 Consumer 21 21 1 22 3 Commercial real estate 1,229 1,799 167 1,426 116 Residential real estate 2,843 2,859 321 2,670 308 Subtotal 4,411 4,971 501 4,439 447 Agricultural 534 538 4 233 15 Commercial and industrial 449 424 8 305 4 Consumer 26 26 1 23 3 Commercial real estate 1,459 2,150 167 2,497 149 Residential real estate 3,110 3,125 321 2,804 354 Total $ 5,578 $ 6,263 $ 501 $ 5,862 $ 525
Schedule of aging analysis of loans by loan category	An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing September 30, 2017 Agricultural $ — $ — $ 83 $ 83 $ 46,023 $ 46,106 $ — Commercial and industrial — — 58 58 101,378 101,436 — Consumer 132 1 11 144 23,867 24,011 — Commercial real estate — — 113 113 123,303 123,416 — Construction real estate — — — — 7,298 7,298 — Residential real estate 625 24 221 870 90,953 91,823 132 $ 757 $ 25 $ 486 $ 1,268 $ 392,822 $ 394,090 $ 132 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
Schedule of nonaccrual loans by loan category	Nonaccrual loans by loan category follow: (Dollars in thousands) September 30, December 31, 2017 2016 Agricultural $ 423 $ 482 Commercial and industrial 59 245 Consumer 17 6 Commercial real estate 211 458 Construction real estate — — Residential real estate 439 792 $ 1,149 $ 1,983

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 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: (Dollars in thousands, except per share data) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Basic earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28 Diluted Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Plus dilutive stock options and restricted stock units 6,370 4,146 4,744 4,380 Weighted average common shares outstanding and potentially dilutive shares 3,458,648 3,443,780 3,453,085 3,459,520 Diluted earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 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: (Dollars in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2017 Assets: Cash and due from banks $ 12,725 $ 12,725 $ 12,725 $ — $ — Securities available for sale 173,306 173,306 1,877 157,886 13,543 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 2,378 2,451 — 2,451 — Loans to other financial institutions 13,293 13,699 — — 13,699 Loans, net 389,874 391,408 — — 391,408 Liabilities: Noninterest-bearing deposits 136,542 136,542 — 136,542 — Interest-bearing deposits 389,296 388,603 — 388,603 — Federal funds purchased 2,650 2,650 — 2,650 — Repurchase agreements 3,794 3,794 — 3,794 — Federal Home Loan Bank advances 30,276 30,298 — 30,298 — 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)	9 Months Ended
	Sep. 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 September 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 in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Date Indicated Investment Securities, Available for Sale – September 30, 2017 U.S. Treasury notes and bonds $ — $ 4,015 $ — $ 4,015 U.S. Government and federal agency — 50,653 — 50,653 State and municipal — 83,552 12,043 95,595 Mortgage-backed — 9,420 — 9,420 Corporate — 5,695 — 5,695 Foreign debt — 4,440 — 4,440 Equity securities 1,877 — 1,500 3,377 Asset backed securities — 111 — 111 Total $ 1,877 $ 157,886 $ 13,543 $ 173,306 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 271 131 Net purchases, sales, calls, and maturities (1,831 ) 2,598 Net transfers into Level 3 — — Balance, September 30 $ 13,543 $ 14,528
Schedule of assets measured at fair value on a nonrecurring basis	Assets Measured at Fair Value on a Non-recurring Basis (Dollars in thousands) Balance at Dates Indicated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans September 30, 2017 $ 4,058 $ — $ — $ 4,058 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate September 30, 2017 $ 182 $ — $ — $ 182 December 31, 2016 $ 437 $ — $ — $ 437

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 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	3,234
Shares issued during period under Employee Stock Purchase Plan, value | $	$ 62,000
Restricted stock [Member]
Property, Plant and Equipment [Line Items]
Shares issued during period under Employee Stock Purchase Plan, shares	5,197
Vesting period	3 years
Directors' Stock Purchase Plan [Member]
Property, Plant and Equipment [Line Items]
Shares issued during the period, shares	3,881
Shares issued during the period, value | $	$ 89,000

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		$ 172,375	$ 175,451
Gross Unrealized Gains		1,797	1,079
Gross Unrealized Losses		(866)	(2,142)
Fair Value		173,306	174,388
U.S. Government and Federal Agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		51,086	59,864
Gross Unrealized Gains		11	34
Gross Unrealized Losses		(444)	(846)
Fair Value		50,653	59,052
U.S. Treasury Notes and Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		4,025	4,111
Gross Unrealized Losses		(10)	(39)
Fair Value		4,015	4,072
State and Municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		94,360	89,169
Gross Unrealized Gains		1,459	748
Gross Unrealized Losses		(224)	(944)
Fair Value		95,595	88,973
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		9,501	7,925
Gross Unrealized Gains		17	19
Gross Unrealized Losses		(98)	(155)
Fair Value		9,420	7,789
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		5,696	7,069
Gross Unrealized Gains		16	12
Gross Unrealized Losses		(17)	(40)
Fair Value		5,695	7,041
Foreign Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		4,512	4,514
Gross Unrealized Losses		(72)	(114)
Fair Value		4,440	4,400
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		3,083	2,617
Gross Unrealized Gains		294	266
Fair Value	[1]	3,377	2,883
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		112	182
Gross Unrealized Losses		(1)	(4)
Fair Value		$ 111	$ 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		Sep. 30, 2017	Dec. 31, 2016
Securities maturing within:
Less than 1 Year		$ 35,025
1 Year - 5 Years		93,033
5 Years - 10 Years		39,049
More than 10 Years		6,199
Fair Value		173,306	$ 174,388
U.S. Government and Federal Agency [Member]
Securities maturing within:
Less than 1 Year		20,250
1 Year - 5 Years		28,460
5 Years - 10 Years		1,943
Fair Value		50,653	59,052
U.S. Treasury Notes and Bonds [Member]
Securities maturing within:
1 Year - 5 Years		4,015
Fair Value		4,015	4,072
State and Municipal [Member]
Securities maturing within:
Less than 1 Year		8,362
1 Year - 5 Years		47,395
5 Years - 10 Years		36,016
More than 10 Years		3,822
Fair Value		95,595	88,973
Corporate [Member]
Securities maturing within:
Less than 1 Year		5,302
1 Year - 5 Years		393
Fair Value		5,695	7,041
Foreign Debt [Member]
Securities maturing within:
Less than 1 Year		1,000
1 Year - 5 Years		3,440
Fair Value		4,440	4,400
Asset-backed Securities [Member]
Securities maturing within:
Less than 1 Year		111
Fair Value		111	178
Total Debt Securities [Member]
Securities maturing within:
Less than 1 Year		35,025
1 Year - 5 Years		83,703
5 Years - 10 Years		37,959
More than 10 Years		3,822
Fair Value		160,509	163,716
Mortgage-backed [Member]
Securities maturing within:
1 Year - 5 Years		9,330
5 Years - 10 Years		90
Fair Value		9,420	7,789
Equity Securities [Member]
Securities maturing within:
5 Years - 10 Years	[1]	1,000
More than 10 Years	[1]	2,377
Fair Value	[1]	$ 3,377	$ 2,883
[1]	Equity securities are preferred and common stock that may or may not have a stated maturity.

LOANS AND ALLOWANCE FOR LOAN 27

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Allowance for Loan Losses
Beginning balance	$ 4,098	$ 4,296	$ 4,277	$ 4,194
Charge-offs	(73)	(93)	(607)	(263)
Recoveries	96	73	426	345
Provision	95		120
Ending balance	4,216	4,276	4,216	4,276
Individually evaluated for impairment	291	501	291	501
Collectively evaluated for impairment	3,925	3,775	3,925	3,775
Loans
Individually evaluated for impairment	4,058		4,058		$ 4,911
Collectively evaluated for impairment	390,032		390,032		364,089
Loans	394,090		394,090		369,000
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	395	399	433	420
Provision	(1)	(11)	(39)	(32)
Ending balance	394	388	394	388
Individually evaluated for impairment		4		4
Collectively evaluated for impairment	394	384	394	384
Loans
Individually evaluated for impairment	424		424		526
Collectively evaluated for impairment	45,682		45,682		44,088
Loans	46,106		46,106		44,614
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	904	656	688	586
Charge-offs	(12)		(374)	(33)
Recoveries	4	8	4	31
Provision	(98)	(55)	480	26
Ending balance	798	610	798	610
Individually evaluated for impairment	5	8	5	8
Collectively evaluated for impairment	793	602	793	602
Loans
Individually evaluated for impairment	192		192		301
Collectively evaluated for impairment	101,244		101,244		95,787
Loans	101,436		101,436		96,088
Consumer [Member]
Allowance for Loan Losses
Beginning balance	294	279	305	297
Charge-offs	(52)	(68)	(189)	(136)
Recoveries	16	49	107	119
Provision	1	30	36	10
Ending balance	259	290	259	290
Individually evaluated for impairment	4	1	4	1
Collectively evaluated for impairment	255	289	255	289
Loans
Individually evaluated for impairment	34		34		28
Collectively evaluated for impairment	23,977		23,977		21,568
Loans	24,011		24,011		21,596
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,551	1,133	1,438	1,030
Recoveries	65	5	226	35
Provision	(152)	340	(200)	412
Ending balance	1,464	1,477	1,464	1,477
Individually evaluated for impairment	54	167	54	167
Collectively evaluated for impairment	1,410	1,310	1,410	1,310
Loans
Individually evaluated for impairment	936		936		1,073
Collectively evaluated for impairment	122,480		122,480		109,689
Loans	123,416		123,416		110,762
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	25	44	62	46
Recoveries			40
Provision	1	(3)	(76)	(5)
Ending balance	26	41	26	41
Collectively evaluated for impairment	26	41	26	41
Loans
Collectively evaluated for impairment	7,298		7,298		6,153
Loans	7,298		7,298		6,153
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	748	1,222	1,014	1,388
Charge-offs	(9)	(25)	(44)	(94)
Recoveries	11	11	49	160
Provision	(140)	(205)	(409)	(451)
Ending balance	610	1,003	610	1,003
Individually evaluated for impairment	228	321	228	321
Collectively evaluated for impairment	382	682	382	682
Loans
Individually evaluated for impairment	2,472		2,472		2,983
Collectively evaluated for impairment	89,351		89,351		86,804
Loans	91,823		91,823		$ 89,787
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	181	563	337	427
Provision	484	(96)	328	40
Ending balance	665	467	665	467
Collectively evaluated for impairment	$ 665	$ 467	$ 665	$ 467

LOANS AND ALLOWANCE FOR LOAN 28

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 394,090	$ 369,000
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	46,106	44,614
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	12,488	12,005
Agricultural [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	23,957	23,852
Agricultural [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	8,865	7,505
Agricultural [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	373	726
Agricultural [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	423	526
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	101,436	96,088
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	12,691	12,135
Commercial and Industrial [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	64,953	56,714
Commercial and Industrial [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	23,141	25,895
Commercial and Industrial [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	484	1,267
Commercial and Industrial [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	167	77
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	123,416	110,762
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	8,069	8,013
Commercial Real Estate [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	72,370	59,343
Commercial Real Estate [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	39,920	39,641
Commercial Real Estate [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,530	1,867
Commercial Real Estate [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 1,527	$ 1,898

LOANS AND ALLOWANCE FOR LOAN 29

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 394,090	$ 369,000
Nonaccrual past due loans	1,149	1,983
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	24,011	21,596
Nonaccrual past due loans	16	6
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	23,995	21,590
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,298	6,153
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	7,298	6,153
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	91,823	89,787
Nonaccrual past due loans	439	791
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	91,252	88,767
Residential Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 132	$ 229

LOANS AND ALLOWANCE FOR LOAN 30

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

LOANS AND ALLOWANCE FOR LOAN 31

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Number of Loans	3
Commercial Real Estate [Member]
Number of Loans	1
Recorded Investment	$ 113

LOANS AND ALLOWANCE FOR LOAN 32

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	$ 731	$ 1,167
Unpaid Principal Balance with no related allowance recorded	916	1,292
Average Recorded Investment with no related allowance recorded	632	1,423
Interest Income Recognized with no related allowance recorded		78
Recorded Investment with an allowance recorded	3,327	4,411
Unpaid Principal Balance with an allowance recorded	3,427	4,971
Related Allowance	291	501
Average Recorded Investment with an allowance recorded	3,748	4,439
Interest Income Recognized with an allowance recorded	103	447
Recorded Investment	4,058	5,578
Unpaid Principal Balance	4,343	6,263
Related Allowance	291	501
Average Recorded Investment	4,380	5,862
Interest Income Recognized	103	525
Agricultural [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	424	489
Unpaid Principal Balance with no related allowance recorded	455	493
Average Recorded Investment with no related allowance recorded	288	154
Interest Income Recognized with no related allowance recorded		(1)
Recorded Investment with an allowance recorded		45
Unpaid Principal Balance with an allowance recorded		45
Related Allowance		4
Average Recorded Investment with an allowance recorded	161	79
Interest Income Recognized with an allowance recorded		16
Recorded Investment	424	534
Unpaid Principal Balance	455	538
Related Allowance		4
Average Recorded Investment	449	233
Interest Income Recognized		15
Commercial and Industrial [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	58	177
Unpaid Principal Balance with no related allowance recorded	69	177
Average Recorded Investment with no related allowance recorded	137	63
Recorded Investment with an allowance recorded	134	273
Unpaid Principal Balance with an allowance recorded	134	247
Related Allowance	5	8
Average Recorded Investment with an allowance recorded	195	242
Interest Income Recognized with an allowance recorded	1	4
Recorded Investment	192	449
Unpaid Principal Balance	203	424
Related Allowance	5	8
Average Recorded Investment	332	305
Interest Income Recognized	1	4
Consumer [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded		5
Unpaid Principal Balance with no related allowance recorded		5
Average Recorded Investment with no related allowance recorded		1
Recorded Investment with an allowance recorded	34	21
Unpaid Principal Balance with an allowance recorded	35	21
Related Allowance	4	1
Average Recorded Investment with an allowance recorded	33	22
Interest Income Recognized with an allowance recorded	1	3
Recorded Investment	34	26
Unpaid Principal Balance	35	26
Related Allowance	4	1
Average Recorded Investment	33	23
Interest Income Recognized	1	3
Commercial Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	113	230
Unpaid Principal Balance with no related allowance recorded	245	351
Average Recorded Investment with no related allowance recorded	104	1,071
Interest Income Recognized with no related allowance recorded		33
Recorded Investment with an allowance recorded	823	1,229
Unpaid Principal Balance with an allowance recorded	904	1,799
Related Allowance	54	167
Average Recorded Investment with an allowance recorded	884	1,426
Interest Income Recognized with an allowance recorded	26	116
Recorded Investment	936	1,459
Unpaid Principal Balance	1,149	2,150
Related Allowance	54	167
Average Recorded Investment	988	2,497
Interest Income Recognized	26	149
Residential Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	136	266
Unpaid Principal Balance with no related allowance recorded	147	266
Average Recorded Investment with no related allowance recorded	103	134
Interest Income Recognized with no related allowance recorded		46
Recorded Investment with an allowance recorded	2,336	2,843
Unpaid Principal Balance with an allowance recorded	2,354	2,859
Related Allowance	228	321
Average Recorded Investment with an allowance recorded	2,475	2,670
Interest Income Recognized with an allowance recorded	75	308
Recorded Investment	2,472	3,110
Unpaid Principal Balance	2,501	3,125
Related Allowance	228	321
Average Recorded Investment	2,578	2,804
Interest Income Recognized	$ 75	$ 354

LOANS AND ALLOWANCE FOR LOAN 33

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 1,268	$ 2,424
Loans Not Past Due		392,822	366,576
Loans		394,090	369,000
Loans 90 Days Past Due and Accruing		132	229
Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	486	1,157
30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		757	1,126
60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		25	141
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		83
Loans Not Past Due		46,023	44,614
Loans		46,106	44,614
Agricultural [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	83
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		58	275
Loans Not Past Due		101,378	95,813
Loans		101,436	96,088
Commercial and Industrial [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	58	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		144	107
Loans Not Past Due		23,867	21,489
Loans		24,011	21,596
Consumer [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	11	6
Consumer [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		132	99
Consumer [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1	2
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		113	260
Loans Not Past Due		123,303	110,502
Loans		123,416	110,762
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	113	260
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Not Past Due		7,298	6,153
Loans		7,298	6,153
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		870	1,782
Loans Not Past Due		90,953	88,005
Loans		91,823	89,787
Loans 90 Days Past Due and Accruing		132	229
Residential Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	221	646
Residential Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		625	1,027
Residential Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 24	$ 109
[1]	Includes nonaccrual loans.

LOANS AND ALLOWANCE FOR LOAN 34

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 1,149	$ 1,983
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	423	482
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	59	245
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	16	6
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	211	458
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 439	$ 791

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic Earnings Per Share
Net income available to common shareholders		$ 1,720	$ 1,683	$ 4,801	$ 4,402
Weighted average common shares outstanding		3,452,278	3,439,633	3,448,341	3,455,141
Basic earnings per share	[1]	$ 0.50	$ 0.50	$ 1.39	$ 1.28
Diluted Earnings Per Share
Net income available to common shareholders		$ 1,720	$ 1,683	$ 4,801	$ 4,402
Weighted average common shares outstanding		3,452,278	3,439,633	3,448,341	3,455,141
Plus dilutive stock options and restricted stock units		6,370	4,146	4,744	4,380
Weighted average common shares outstanding and potentially dilutive shares		3,458,648	3,443,780	3,453,085	3,459,520
Diluted earnings per share	[1]	$ 0.50	$ 0.50	$ 1.39	$ 1.28
[1]	Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017.

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017
Earnings Per Share [Abstract]
Stock dividend paid			5.00%
Dilutive stock options excluded in calculation of earnings per share	31,500	32,550

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Securities available for sale	$ 173,306	$ 174,388
Loans to other financial institutions	13,293
Liabilities:
Noninterest-bearing deposits	136,542	127,611
Interest-bearing deposits	389,296	384,775
Federal funds purchased	2,650
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Cash and due from banks	12,725	14,809
Securities available for sale	1,877	1,383
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Securities available for sale	157,886	157,902
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	2,451	2,044
Liabilities:
Noninterest-bearing deposits	136,542	127,611
Interest-bearing deposits	388,603	383,879
Federal funds purchased	2,650
Repurchase agreements	3,794	7,913
Federal Home Loan Bank advances	30,298	12,323
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Securities available for sale	13,543	15,103
Loans to other financial institutions	13,699
Loans, net	391,408	365,780
Carrying Amount [Member]
Assets:
Cash and due from banks	12,725	14,809
Securities available for sale	173,306	174,388
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	2,378	1,974
Loans to other financial institutions	13,293
Loans, net	389,874	364,723
Liabilities:
Noninterest-bearing deposits	136,542	127,611
Interest-bearing deposits	389,296	384,775
Federal funds purchased	2,650
Repurchase agreements	3,794	7,913
Federal Home Loan Bank advances	30,276	12,301
Estimated Fair Value [Member]
Assets:
Cash and due from banks	12,725	14,809
Securities available for sale	173,306	174,388
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	2,451	2,044
Loans to other financial institutions	13,699
Loans, net	391,408	365,780
Liabilities:
Noninterest-bearing deposits	136,542	127,611
Interest-bearing deposits	388,603	383,879
Federal funds purchased	2,650
Repurchase agreements	3,794	7,913
Federal Home Loan Bank advances	$ 30,298	$ 12,323

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		$ 173,306	$ 174,388
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	[1]	3,377	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		4,015	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		50,653	59,052
State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		95,595	88,973
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		9,420	7,789
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		5,695	7,041
Foreign Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		4,440	4,400
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		111	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		1,877	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		157,886	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		13,543	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		173,306	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		3,377	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		4,015	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		50,653	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		95,595	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		9,420	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		5,695	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		4,440	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		111	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		1,877	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		1,877	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		157,886	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		4,015	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		50,653	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		83,552	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		9,420	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		5,695	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		4,440	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		111	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		13,543	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		$ 12,043	$ 13,603
[1]	Equity securities are preferred and common stock that may or may not have a stated maturity.

FAIR VALUE MEASUREMENTS (Deta39

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 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	$ 271	$ 131
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis
Balance at the beginning of year	15,103	11,799
Total unrealized gains (losses) included in other comprehensive income	271	131
Net purchases, sales, calls, and maturities	(1,831)	2,598
Balance at the end of year	$ 13,543	$ 14,528

FAIR VALUE MEASUREMENTS (Deta40

FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 4,058	$ 4,911
Other real estate owned, net	182	437
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	4,058	4,911
Other real estate owned, net	$ 182	$ 437

FAIR VALUE MEASUREMENTS (Deta41

FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Total unrealized gains (losses) included in other comprehensive income	$ 271	$ 131
Purchased during period	3,200	5,100
Securities matured or were called	4,800	2,200
Principal paydowns	$ 204	$ 267

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($) $ in Thousands	Oct. 04, 2017	Dec. 31, 2017
Subsequent Event [Member] | Ridgetown Investments LLC [Member ]
Subsequent Event [Line Items]
Proceeds from sale of portion of investment book	$ 908	$ 908