ChoiceOne Financial Services (COFS) 10-Q 14 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document And Entity Information
Entity Registrant Name	CHOICEONE FINANCIAL SERVICES INC
Entity Central Index Key	803,164
Document Type	10-Q
Trading Symbol	COFS
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,613,916
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 11,877	$ 36,837
Equity securities at fair value (Note 2)	3,338
Securities available for sale (Note 2)	161,687	155,591
Federal Home Loan Bank stock	1,994	1,994
Federal Reserve Bank stock	1,573	1,573
Loans held for sale	617	1,721
Loans to other financial institutions	9,006	6,802
Loans (Note 3)	395,898	398,785
Allowance for loan losses (Note 3)	(4,659)	(4,577)
Loans, net	391,239	394,208
Premises and equipment, net	13,571	12,855
Cash surrender value of life insurance policies	14,706	14,514
Goodwill	13,728	13,728
Other assets	7,501	6,721
Total assets	630,837	646,544
Liabilities
Deposits - noninterest-bearing	147,040	151,462
Deposits - interest-bearing	380,881	388,391
Total deposits	527,921	539,853
Repurchase agreements		7,148
Federal funds purchased	4,000
Advances from Federal Home Loan Bank	20,251	20,268
Other liabilities	2,397	2,725
Total liabilities	554,569	569,994
Shareholders' Equity
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,613,080 at June 30, 2018 and 3,448,569 at December 31, 2017	54,289	50,290
Retained earnings	24,146	26,023
Accumulated other comprehensive income (loss), net	(2,167)	237
Total shareholders' equity	76,268	76,550
Total liabilities and shareholders' equity	$ 630,837	$ 646,544

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, authorized shares	7,000,000	7,000,000
Common stock, outstanding shares	3,613,080	3,448,569

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income
Loans, including fees	$ 5,028	$ 4,401	$ 9,624	$ 8,565
Securities:
Taxable	713	663	1,398	1,284
Tax exempt	362	352	723	713
Other	12	9	69	24
Total interest income	6,115	5,425	11,814	10,586
Interest expense
Deposits	463	292	809	540
Advances from Federal Home Loan Bank	57	52	102	107
Other	25	4	26	7
Total interest expense	545	348	937	654
Net interest income	5,570	5,077	10,877	9,932
Provision for loan losses (Note 3)		25	35	25
Net interest income after provision for loan losses	5,570	5,052	10,842	9,907
Noninterest income
Customer service charges	1,120	1,049	2,175	2,023
Insurance and investment commissions	72	262	134	500
Gains on sales of loans	288	341	549	565
Gains on sales of securities	16	60	25	126
Net gain on sales of other assets		4	8	4
Earnings on life insurance policies	98	99	192	198
Other	127	127	286	258
Total noninterest income	1,721	1,942	3,369	3,674
Noninterest expense
Salaries and benefits	2,779	2,591	5,528	5,106
Occupancy and equipment	664	689	1,344	1,397
Data processing	555	554	1,089	1,130
Professional fees	311	262	528	491
Supplies and postage	97	90	213	191
Advertising and promotional	85	73	177	127
Other	623	520	1,199	1,006
Total noninterest expense	5,114	4,779	10,078	9,448
Income before income tax	2,177	2,215	4,132	4,133
Income tax expense	344	580	642	1,052
Net income	$ 1,833	$ 1,635	$ 3,491	$ 3,081
Basic earnings per share (Note 4) (in dollars per share)	$ 0.51	$ 0.45	$ 0.97	$ 0.85
Diluted earnings per share (Note 4) (in dollars per share)	0.5	0.45	0.96	0.85
Dividends declared per share (in dollars per share)	$ 0.18	$ 0.16	$ 0.35	$ 0.31

CONSOLIDATED STATEMENTS OF INC5

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Stock dividend paid (percent)	5.00%	5.00%

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 1,833	$ 1,635	$ 3,491	$ 3,081
Other comprehensive income:
Changes in net unrealized gains and losses on investment securities available for sale, net of tax benefit (expense) of $86 and $(557) for the three months ended June 30, 2018 and June 30, 2017 respectively. Changes in net unrealized gains on investment securities available for sale, net of tax benefit (expense) of $569 and $(910) for the six months ended June 30, 2018 and June 30, 2017 respectively.	(324)	1,081	(2,140)	1,766
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $3 and $21 for the three months ended June 30, 2018 and June 30, 2017 respectively. Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense of $5 and $43 for the six months ended June 30, 2018 and June 30, 2017 respectively.	(12)	(39)	(20)	(83)
Other comprehensive income (loss), net of tax	(336)	1,042	(2,160)	1,683
Comprehensive income	$ 1,497	$ 2,677	$ 1,331	$ 4,764

CONSOLIDATED STATEMENTS OF COM7

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on investment securities available for sale, net of tax expense (benefit)	$ 86	$ (557)	$ 569	$ (910)
Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense	$ 3	$ 21	$ 5	$ 43

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands		Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss), Net [Member]	Total
Balance, beginning at Dec. 31, 2016		$ 46,299	$ 25,997	$ (598)	$ 71,698
Balance, beginning (in shares) at Dec. 31, 2016		3,277,944
Increase (Decrease) in Stockholders' Equity
Net income			3,081		3,081
Other comprehensive income (loss)				1,683	1,683
Shares issued		$ 82			82
Shares issued (in shares)		5,318
Effect of employee stock purchases		$ 6			6
Stock options exercised		$ 13			13
Stock options exercised (in shares)		1,000
Stock-based compensation expense		$ 116			116
Restricted stock units vested (in shares)		4,104
Stock dividend declared (5%)		$ 3,779	(3,786)		(7)
Stock dividend declared (5%) (in shares)		163,989
Cash dividends declared			(1,144)		(1,144)
Balance, ending at Jun. 30, 2017		$ 50,295	24,148	1,085	75,528
Balance, ending (in shares) at Jun. 30, 2017		3,452,355
Balance, beginning at Dec. 31, 2017		$ 50,290	26,023	237	$ 76,550
Balance, beginning (in shares) at Dec. 31, 2017		3,448,569			3,448,569
Increase (Decrease) in Stockholders' Equity
Net income			3,491		$ 3,491
Other comprehensive income (loss)				(2,160)	$ (2,160)
Shares issued		$ 50
Shares issued (in shares)		4,532			50
Shares repurchased		$ (523)			$ (523)
Shares repurchased (in shares)		(20,228)
Effect of employee stock purchases		$ 6			6
Stock options exercised (in shares)		809
Stock-based compensation expense		$ 131			131
Restricted stock units vested (in shares)		7,304
Stock dividend declared (5%)		$ 4,335	(4,342)		(7)
Stock dividend declared (5%) (in shares)		172,094
Adoption effect of ASU 2016-01			244	(244)
Cash dividends declared	[1]		(1,270)		(1,270)
Balance, ending at Jun. 30, 2018		$ 54,289	$ 24,146	$ (2,167)	$ 76,268
Balance, ending (in shares) at Jun. 30, 2018		3,613,080			3,613,080
[1]	The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 21%

CONSOLIDATED STATEMENTS OF CHA9

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividend declared, per share	$ 0.18	$ 0.16	$ 0.35	$ 0.31

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 3,491	$ 3,081
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	35	25
Depreciation	579	643
Amortization	460	549
Compensation expense on stock purchases and restricted stock units	148	163
Gains on sales of securities	(25)	(126)
Gains on sales of loans	(549)	(565)
Loans originated for sale	(17,835)	(14,456)
Proceeds from loan sales	19,120	14,180
Earnings on bank-owned life insurance	(192)	(198)
Gains on sales of other real estate owned	(8)
Proceeds from sales of other real estate owned	114	172
Deferred federal income tax benefit	40	138
Net changes in other assets	(853)	309
Net changes in other liabilities	219	(468)
Net cash from operating activities	4,744	3,447
Securities available for sale:
Sales	2,716	12,520
Maturities, prepayments and calls	6,072	8,011
Purchases	(21,177)	(24,301)
Loan originations and payments, net	686	(14,378)
Additions to premises and equipment	(1,143)	(291)
Net cash used in investing activities	(12,846)	(18,439)
Cash flows from financing activities:
Net change in deposits	(11,932)	11,958
Net change in repurchase agreements	(7,148)	(5,612)
Net change in federal funds purchased	4,000
Proceeds from Federal Home Loan Bank advances	30,000	117,500
Payments on Federal Home Loan Bank advances	(30,017)	(105,517)
Issuance of common stock	40	55
Repurchase of common stock	(523)
Cash dividends and fractional shares from stock dividend	(1,278)	(1,151)
Net cash provided by (used in) financing activities	(16,858)	17,233
Net change in cash and cash equivalents	(24,960)	2,241
Beginning cash and cash equivalents	36,837	14,809
Ending cash and cash equivalents	11,877	17,050
Supplemental disclosures of cash flow information:
Cash paid for interest	889	596
Cash paid for taxes	700	800
Loans transferred to other real estate owned	$ 179	$ 207

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2018 and June 30, 2017, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2018 and June 30, 2017, the Consolidated Statements of Changes in Shareholders' Equity for the six-month periods ended June 30, 2018 and June 30, 2017, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2018 and June 30, 2017. Operating results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017. Loans to Other Financial Institutions 44% of the total at June 30, 2018 Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At June 30, 2018, there was one participating in loans to other financial institutions interest totaling $254,000 that was over 30 days. Since the inception of the program, there were no losses or charge-offs of participating interests. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. Stock Transactions A total of 2,709 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $68,000 under the terms of the Directors’ Stock Purchase Plan in the first six months of 2018. A total of 1,824 shares for a cash price of $40,000 were issued under the Employee Stock Purchase Plan in the first half of 2018. A total of 809 shares were issued upon the exercise of stock options in the first six months of 2018. A total of 7,304 shares were issued to employees for Restricted Stock Units that vested during the first half of 2018. Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities the fair value of loans has been estimated using an exit price notion in Note 5. The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The fair value of equity securities at fair value and the related gross unrealized gains recognized in other noninterest income were as follows: June 30, 2018 (Dollars in thousands) Amortized Gross Gross Fair Equity securities $ 3,002 $ 336 $ — $ 3,338 The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: June 30, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,099 $ — $ (971 ) $ 33,128 U.S. Treasury 1,991 — (72 ) 1,919 State and municipal 104,958 378 (1,731 ) 103,605 Mortgage-backed 18,310 11 (409 ) 17,912 Corporate 5,146 — (79 ) 5,067 Asset-backed securities 56 — — 56 Total $ 164,560 $ 389 $ (3,262 ) $ 161,687 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Value U.S. Government and federal agency $ 35,518 $ — $ (392 ) $ 35,126 U.S. Treasury 1,991 — (31 ) 1,960 State and municipal 99,609 910 (471 ) 100,048 Mortgage-backed 9,943 8 (131 ) 9,820 Corporate 5,184 2 (35 ) 5,151 Equity securities 3,083 309 — 3,392 Asset-backed securities 95 — (1 ) 94 Total $ 155,423 $ 1,229 $ (1,061 ) $ 155,591 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 three and six months ended June 30, 2018. ChoiceOne believed that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues. Presented below is a schedule of maturities of securities as of June 30, 2018, the fair value of securities as of June 30, 2018 and December 31, 2017, and the weighted average yields of securities as of June 30, 2018: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2018 2017 U.S. Government and federal agency $ 16,460 $ 9,888 $ 6,780 $ — $ 33,128 $ 35,126 U.S. Treasury notes and bonds — 1,919 — — 1,919 1,960 State and municipal 10,694 50,580 40,314 2,017 103,605 100,048 Corporate 1,992 2,587 488 — 5,067 5,151 Asset-backed securities 56 — — — 56 94 Total debt securities 29,202 64,974 47,582 2,017 143,775 142,379 Mortgage-backed securities — 11,656 6,256 — 17,912 9,820 Equity securities (1) — — 1,000 2,338 3,338 3,392 Total $ 29,202 $ 76,630 $ 54,838 $ 4,355 $ 165,025 $ 155,591 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.19 % 1.78 % 2.67 % — % 2.17 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 3.10 3.05 3.58 1.22 3.23 Corporate — 2.48 3.21 — 1.58 Asset-backed securities 2.59 — — — 2.59 Mortgage-backed securities — 2.92 3.01 — 2.95 Equity securities (1) — — 4.78 1.07 2.18 (1) Equity securities are preferred and common stock that may or may not have stated maturity. (2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%. Following is information regarding unrealized gains and losses on equity securities for the three- and six-month periods ending June 30, 2018: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net gains and losses recognized during the period $ 26 $ 58 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 26 $ 49

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses and balances in the loan portfolio were as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended June 30, 2018 Beginning balance $ 350 $ 1,005 $ 245 $ 1,786 $ 18 $ 625 $ 680 $ 4,709 Charge-offs — (57 ) (50 ) — — (9 ) — (116 ) Recoveries — — 15 3 — 48 — 66 Provision 9 22 (5 ) 122 (2 ) (44 ) (102 ) — Ending balance $ 359 $ 970 $ 205 $ 1,911 $ 16 $ 620 $ 578 $ 4,659 Six Months Ended June 30, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — (58 ) (118 ) — — (13 ) — (188 ) Recoveries — 53 51 59 — 73 — 236 Provision (147 ) (26 ) 10 91 (19 ) (166 ) 292 35 Ending balance $ 359 $ 970 $ 205 $ 1,911 $ 16 $ 620 $ 578 $ 4,659 Individually evaluated for impairment $ — $ 76 $ 1 $ 28 $ — $ 221 $ — $ 326 Collectively evaluated for impairment $ 359 $ 894 $ 204 $ 1,883 $ 16 $ 399 $ 577 $ 4,333 Three Months Ended June 30, 2017 Beginning balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Charge-offs — (352 ) (57 ) — — — — (409 ) Recoveries — — 39 49 40 29 — 157 Provision (11 ) 511 26 88 (39 ) (7 ) (543 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Six Months Ended Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (362 ) (137 ) — — (34 ) — (533 ) Recoveries — — 91 161 40 37 — 329 Provision (38 ) 578 35 (48 ) (78 ) (268 ) (156 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Individually evaluated for impairment $ — $ 27 $ 4 $ 65 $ — $ 271 $ — $ 367 Collectively evaluated for impairment $ 395 $ 877 $ 290 $ 1,486 $ 24 $ 478 $ 181 $ 3,731 Loans Individually evaluated for impairment $ 421 $ 292 $ 58 $ 815 $ — $ 2,692 $ 4,278 Collectively evaluated for impairment 38,951 96,746 24,122 135,394 3,682 92,725 391,620 Ending balance $ 39,372 $ 97,038 $ 24,180 $ 136,209 $ 3,682 $ 95,417 $ 395,898 December 31, 2017 Individually evaluated for impairment $ 423 $ 124 $ 36 $ 778 $ — $ 2,779 $ 4,140 Collectively evaluated for impairment 48,041 104,262 24,477 122,709 6,613 88,543 394,645 Ending balance $ 48,464 $ 104,386 $ 24,513 $ 123,487 $ 6,613 $ 91,322 $ 398,785 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans, (2) the level of classified business loans, and (3) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 8. A description of the characteristics of the ratings follows: Risk ratings 1 and 2: These loans are considered pass credits. They exhibit good to exceptional credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 3: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 4: These loans are considered pass credits. However, they have potential developing weaknesses that, if not corrected, may cause deterioration in the ability of the borrower to repay the loan. While a loss is possible for a loan with this rating, it is not anticipated. Risk rating 5: These loans are considered special mention credits. Loans in this risk rating are considered to be inadequately protected by the net worth and debt service coverage of the borrower or of any pledged collateral. These loans have well defined weaknesses that may jeopardize the borrower’s ability to repay the loan. If the weaknesses are not corrected, loss of principal and interest could be probable. Risk rating 6: These loans are considered substandard credits. These loans have well defined weaknesses, the severity of which makes collection of principal and interest in full questionable. Loans in this category may be placed on nonaccrual status. Risk rating 7: These loans are considered doubtful credits. Some loss of principal and interest has been determined to be probable. The estimate of the amount of loss could be affected by factors such as the borrower’s ability to provide additional capital or collateral. Loans in this category are on nonaccrual status. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2018 2017 2018 2017 2018 2017 Risk ratings 1 and 2 $ 11,449 $ 14,813 $ 12,253 $ 13,491 $ 8,392 $ 8,227 Risk rating 3 17,983 22,721 60,172 63,366 91,126 78,868 Risk rating 4 9,108 10,199 23,292 26,943 33,074 33,429 Risk rating 5 411 308 1,188 491 2,269 1,533 Risk rating 6 421 423 133 95 1,348 1,430 $ 39,372 $ 48,464 $ 97,038 $ 104,386 $ 136,209 $ 123,487 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2018 2017 2018 2017 2018 2017 Performing $ 24,180 $ 24,497 $ 3,682 $ 6,613 $ 94,875 $ 90,629 Nonperforming — 1 — — — 257 Nonaccrual — 15 — — 542 436 $ 24,180 $ 24,513 $ 3,682 $ 6,613 $ 95,417 $ 91,322 The following schedule provides information on loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three and six months periods ended June 30, 2018. There were no loans that were considered TDRs that were modified during the three and six months periods ended June 30, 2017: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 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 and industrial — $ — $ — 1 $ 39 $ 39 The pre-modification and post-modification outstanding recorded investment represents amounts as of the date of loan modification. If a difference exists between the pre-modification and post-modification outstanding recorded investment, it represents impairment recognized through the provision for loan losses computed based on a loan’s post-modification present value of expected future cash flows discounted at the loan’s original effective interest rate. If no difference exists, a loss is not expected to be incurred based on an assessment of the borrower’s expected cash flows. The following schedule provides information on TDRs as of June 30, 2018 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three month and six months ended June 30, 2018 that had been modified during the year prior to the default: Three Months Ended Six Months Ended (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial and industrial 1 $ 39 1 $ 39 The following schedule provides information on TDRs as of June 30, 2017 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three month and six months ended June 30, 2017 that had been modified during the year prior to the default: Three Months Ended Six Months Ended (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate — $ — 1 $ 128 Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2018 With no related allowance recorded Agricultural $ 421 $ 455 $ — Commercial and industrial 61 61 — Consumer — — — Commercial real estate 53 55 — Residential real estate 110 122 — Subtotal 645 693 — With an allowance recorded Agricultural — — — Commercial and industrial 231 266 76 Consumer 58 59 1 Commercial real estate 762 849 28 Residential real estate 2,582 2,616 221 Subtotal 3,633 3,790 326 Total Agricultural 421 455 — Commercial and industrial 292 327 76 Consumer 58 59 1 Commercial real estate 815 904 28 Residential real estate 2,692 2,738 221 Total $ 4,278 $ 4,483 $ 326 December 31, 2017 With no related allowance recorded Agricultural $ 423 $ 455 $ — Commercial and industrial — — — Consumer — — — Commercial real estate 127 258 — Residential real estate 115 126 — Subtotal 665 839 — With an allowance recorded Agricultural — — — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 651 734 49 Residential real estate 2,664 2,690 224 Subtotal 3,475 3,584 302 Total Agricultural 423 455 — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 778 992 49 Residential real estate 2,779 2,816 224 Total $ 4,140 $ 4,423 $ 302 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the six months ended June 30, 2018 and 2017: Average Interest (Dollars in thousands) Recorded Income Investment Recognized June 30, 2018 With no related allowance recorded Agricultural $ 423 $ — Commercial and industrial 20 2 Consumer 3 — Commercial real estate 79 — Residential real estate 137 1 Subtotal 662 3 With an allowance recorded Agricultural — — Commercial and industrial 215 8 Consumer 43 1 Commercial real estate 733 22 Residential real estate 2,633 63 Subtotal 3,624 94 Agricultural 423 — Commercial and industrial 235 10 Consumer 46 1 Commercial real estate 812 22 Residential real estate 2,770 64 Total $ 4,286 $ 97 June 30, 2017 With no related allowance recorded Agricultural $ 308 $ — Commercial and industrial 186 — Consumer — — Commercial real estate 181 — Residential real estate 158 2 Subtotal 833 2 With an allowance recorded Agricultural 175 — Commercial and industrial 182 1 Consumer 31 1 Commercial real estate 853 17 Residential real estate 2,590 56 Subtotal 3,831 75 Agricultural 483 — Commercial and industrial 368 1 Consumer 31 1 Commercial real estate 1,034 17 Residential real estate 2,748 58 Total $ 4,664 $ 77 An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing June 30, 2018 Agricultural $ — $ — $ 421 $ 421 $ 38,951 $ 39,372 $ — Commercial and industrial — — 39 39 96,999 97,038 — Consumer 93 — — 93 24,087 24,180 — Commercial real estate 84 79 — 163 136,046 136,209 — Construction real estate 268 — — 268 3,414 3,682 — Residential real estate 694 475 66 1,235 94,182 95,417 — $ 1,139 $ 554 $ 526 $ 2,219 $ 393,679 $ 395,898 $ — December 31, 2017 Agricultural $ — $ — $ 83 $ 83 $ 48,381 $ 48,464 $ — Commercial and industrial 20 — — 20 104,366 104,386 — Consumer 142 38 1 181 24,332 24,513 — Commercial real estate 95 58 69 222 123,265 123,487 — Construction real estate — — — — 6,613 6,613 — Residential real estate 585 272 296 1,153 90,169 91,322 258 $ 842 $ 368 $ 449 $ 1,659 $ 397,126 $ 398,785 $ 258 (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) June 30, December 31, 2018 2017 Agricultural $ 421 $ 423 Commercial and industrial 39 — Consumer — 15 Commercial real estate 138 222 Construction real estate — — Residential real estate 542 436 $ 1,140 $ 1,096

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 4 - EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30, June 30, 2018 2017 2018 2017 Basic Earnings Per Share Net income available to common shareholders $ 1,833 $ 1,635 $ 3,491 $ 3,081 Weighted average common shares outstanding 3,613,398 3,622,290 3,614,197 3,618,729 Basic earnings per share $ 0.51 $ 0.45 $ 0.97 $ 0.85 Diluted Earnings Per Share Net income available to common shareholders $ 1,833 $ 1,635 $ 3,491 $ 3,081 Weighted average common shares outstanding 3,613,398 3,622,290 3,614,197 3,618,729 Plus dilutive stock options and restricted stock units 12,550 4,049 10,463 3,482 Weighted average common shares outstanding and potentially dilutive shares 3,625,948 3,626,339 3,624,660 3,622,211 Diluted earnings per share $ 0.50 $ 0.45 $ 0.96 $ 0.85 There were no stock options that were considered to be anti-dilutive to earnings per share for the three months ended June 30, 2018. There were 15,000 options that were considered to be anti-dilutive to earnings per share for the six months ended June 30, 2018 and were excluded from the calculation above. There were 31,500 stock options that were considered to be anti-dilutive for the three months ended June 30, 2017 and there were 47,250 stock options that were considered to be anti-dilutive for the six months ended June 30, 2017. These stock options have been excluded from the calculation of diluted earnings above. All per share amounts have been adjusted for the 5% stock dividend issued on May 31, 2018 and the 5% stock dividend issued on May 31, 2017, where applicable.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2018
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS	NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) June 30, 2018 Assets: Cash and due from banks $ 11,877 $ 11,877 $ 11,877 $ — $ — Equity securities at fair value 3,338 3,338 1,838 — 1,500 Securities available for sale 161,687 161,687 — 150,348 11,339 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 617 647 — 647 — Loans to other financial institutions 9,006 9,006 — 9,006 — Loans, net 391,239 390,988 — — 390,988 Accrued interest receivable 2,220 2,220 — 2,220 — Liabilities: Noninterest-bearing deposits 147,040 147,040 — 147,040 — Interest-bearing deposits 380,881 379,501 — 379,501 — Federal funds purchased 4,000 4,000 — 4,000 — Federal Home Loan Bank advances 20,251 20,259 — 20,259 — Accrued interest payable 98 98 — 98 — December 31, 2017 Assets: Cash and due from banks $ 36,837 $ 36,837 $ 36,837 $ — $ — Securities available for sale 155,591 155,591 1,892 140,301 13,398 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,721 1,773 — 1,773 — Loans to other financial institutions 6,802 6,802 6,802 Loans, net 394,208 394,819 — — 394,819 Accrued interest receivable 2,146 2,146 — 2,146 — Liabilities: Noninterest-bearing deposits 151,462 151,462 — 151,462 — Interest-bearing deposits 388,391 387,343 — 387,343 — Repurchase agreements 7,148 7,148 — 7,148 — Federal Home Loan Bank advances 20,268 20,271 — 20,271 — Accrued interest payable 49 49 — 49 —

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 6 – FAIR VALUE MEASUREMENTS The following tables present information about assets and liabilities measured at fair value on a recurring basis and the valuation techniques used to determine those fair values. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Bank has the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Bank’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. There were no liabilities measured at fair value as of June 30, 2018 or December 31, 2017. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - June 30, 2018 Equity securities $ 1,838 $ — $ 1,500 $ 3,338 Investment Securities, Available for Sale – June 30, 2018 U.S. Treasury notes and bonds $ — $ 1,919 $ — $ 1,919 U.S. Government and federal agency — 33,128 — 33,128 State and municipal — 92,266 11,339 103,605 Mortgage-backed — 17,912 — 17,912 Corporate — 5,067 — 5,067 Asset backed securities — 56 — 56 Total $ — $ 150,348 $ 11,339 $ 161,687 Investment Securities, Available for Sale - December 31, 2017 U.S. Treasury notes and bonds $ — $ 1,960 $ — $ 1,960 U.S. Government and federal agency — 35,126 — 35,126 State and municipal — 88,150 11,898 100,048 Mortgage-backed — 9,820 — 9,820 Corporate — 5,151 — 5,151 Equity securities 1,892 — 1,500 3,392 Asset backed securities — 94 — 94 Total $ 1,892 $ 140,301 $ 13,398 $ 155,591 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2018 2017 Investment Securities Balance, January 1 $ 13,398 $ 15,103 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income (246 ) 162 Net purchases, sales, calls, and maturities (313 ) (407 ) Net transfers into Level 3 — — Balance, June 30 $ 12,839 $ 14,858 Of the Level 3 assets that were held by the company as available for sale at June 30, 2018, the net unrealized gain as of June 30, 2018 was $84,000, which is recognized in accumulated other comprehensive income in the consolidated balance sheet. A total of $231,000 of Level 3 securities were purchased in the six months ended June 30, 2018. 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. Securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities and equity securities of community banks. The company 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 company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans June 30, 2018 $ 4,278 $ — $ — $ 4,278 December 31, 2017 $ 4,140 $ — $ — $ 4,140 Other Real Estate June 30, 2018 $ 179 $ — $ — $ 179 December 31, 2017 $ 106 $ — $ — $ 106 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The company estimates the fair value of the loans based on the present value of expected future cash flows using management’s estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). The changes in fair value consisted of charge-downs of impaired loans that were posted to the allowance for loan losses and write-downs of other real estate that were posted to a valuation account.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2018 and June 30, 2017, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2018 and June 30, 2017, the Consolidated Statements of Changes in Shareholders' Equity for the six-month periods ended June 30, 2018 and June 30, 2017, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2018 and June 30, 2017. Operating results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017.
Loans to Other Financial Institutions	Loans to Other Financial Institutions 44% of the total at June 30, 2018 Credit risk associated with the participating interest is measured as an allowance for loan losses when necessary. Losses are charged off against the allowance when incurred and recoveries of loan charge-offs are recorded when received. At least quarterly, the Bank reviews the portfolio of participating interests for potential losses including any participating interest that is outstanding over 90 days (even if the advance and participating interest is current). At June 30, 2018, there was one participating in loans to other financial institutions interest totaling $254,000 that was over 30 days. Since the inception of the program, there were no losses or charge-offs of participating interests.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income.
Stock Transactions	Stock Transactions A total of 2,709 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $68,000 under the terms of the Directors’ Stock Purchase Plan in the first six months of 2018. A total of 1,824 shares for a cash price of $40,000 were issued under the Employee Stock Purchase Plan in the first half of 2018. A total of 809 shares were issued upon the exercise of stock options in the first six months of 2018. A total of 7,304 shares were issued to employees for Restricted Stock Units that vested during the first half of 2018.
Stock-Based Compensation	Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock.
Reclassifications	Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities the fair value of loans has been estimated using an exit price notion in Note 5. The FASB issued ASU 2016-02, Leases The FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of fair value of securities available for sale	The fair value of equity securities at fair value and the related gross unrealized gains recognized in other noninterest income were as follows: June 30, 2018 (Dollars in thousands) Amortized Gross Gross Fair Equity securities $ 3,002 $ 336 $ — $ 3,338 The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: June 30, 2018 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 34,099 $ — $ (971 ) $ 33,128 U.S. Treasury 1,991 — (72 ) 1,919 State and municipal 104,958 378 (1,731 ) 103,605 Mortgage-backed 18,310 11 (409 ) 17,912 Corporate 5,146 — (79 ) 5,067 Asset-backed securities 56 — — 56 Total $ 164,560 $ 389 $ (3,262 ) $ 161,687 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 35,518 $ — $ (392 ) $ 35,126 U.S. Treasury 1,991 — (31 ) 1,960 State and municipal 99,609 910 (471 ) 100,048 Mortgage-backed 9,943 8 (131 ) 9,820 Corporate 5,184 2 (35 ) 5,151 Equity securities 3,083 309 — 3,392 Asset-backed securities 95 — (1 ) 94 Total $ 155,423 $ 1,229 $ (1,061 ) $ 155,591
Schedule of contractual maturities of available for sale securities	Presented below is a schedule of maturities of securities as of June 30, 2018, the fair value of securities as of June 30, 2018 and December 31, 2017, and the weighted average yields of securities as of June 30, 2018: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2018 2017 U.S. Government and federal agency $ 16,460 $ 9,888 $ 6,780 $ — $ 33,128 $ 35,126 U.S. Treasury notes and bonds — 1,919 — — 1,919 1,960 State and municipal 10,694 50,580 40,314 2,017 103,605 100,048 Corporate 1,992 2,587 488 — 5,067 5,151 Asset-backed securities 56 — — — 56 94 Total debt securities 29,202 64,974 47,582 2,017 143,775 142,379 Mortgage-backed securities — 11,656 6,256 — 17,912 9,820 Equity securities (1) — — 1,000 2,338 3,338 3,392 Total $ 29,202 $ 76,630 $ 54,838 $ 4,355 $ 165,025 $ 155,591 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 2.19 % 1.78 % 2.67 % — % 2.17 % U.S. Treasury notes and bonds — 1.85 — — 1.85 State and municipal (2) 3.10 3.05 3.58 1.22 3.23 Corporate — 2.48 3.21 — 1.58 Asset-backed securities 2.59 — — — 2.59 Mortgage-backed securities — 2.92 3.01 — 2.95 Equity securities (1) — — 4.78 1.07 2.18 (1) Equity securities are preferred and common stock that may or may not have stated maturity. (2) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental rate of 21%.
Schedule of unrealized gains and losses on equity securities	Following is information regarding unrealized gains and losses on equity securities for the three- and six-month periods ending June 30, 2018: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net gains and losses recognized during the period $ 26 $ 58 Less: Net gains and losses recognized during the period on securities sold — 9 Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date $ 26 $ 49

LOANS AND ALLOWANCE FOR LOAN 19

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Schedule of activity in the allowance for loan losses and balances in the loan portfolio	Activity in the allowance for loan losses and balances in the loan portfolio were as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Three Months Ended June 30, 2018 Beginning balance $ 350 $ 1,005 $ 245 $ 1,786 $ 18 $ 625 $ 680 $ 4,709 Charge-offs — (57 ) (50 ) — — (9 ) — (116 ) Recoveries — — 15 3 — 48 — 66 Provision 9 22 (5 ) 122 (2 ) (44 ) (102 ) — Ending balance $ 359 $ 970 $ 205 $ 1,911 $ 16 $ 620 $ 578 $ 4,659 Six Months Ended June 30, 2018 Beginning balance $ 506 $ 1,001 $ 262 $ 1,761 $ 35 $ 726 $ 286 $ 4,577 Charge-offs — (58 ) (118 ) — — (13 ) — (188 ) Recoveries — 53 51 59 — 73 — 236 Provision (147 ) (26 ) 10 91 (19 ) (166 ) 292 35 Ending balance $ 359 $ 970 $ 205 $ 1,911 $ 16 $ 620 $ 578 $ 4,659 Individually evaluated for impairment $ — $ 76 $ 1 $ 28 $ — $ 221 $ — $ 326 Collectively evaluated for impairment $ 359 $ 894 $ 204 $ 1,883 $ 16 $ 399 $ 577 $ 4,333 Three Months Ended June 30, 2017 Beginning balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Charge-offs — (352 ) (57 ) — — — — (409 ) Recoveries — — 39 49 40 29 — 157 Provision (11 ) 511 26 88 (39 ) (7 ) (543 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Six Months Ended Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (362 ) (137 ) — — (34 ) — (533 ) Recoveries — — 91 161 40 37 — 329 Provision (38 ) 578 35 (48 ) (78 ) (268 ) (156 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Individually evaluated for impairment $ — $ 27 $ 4 $ 65 $ — $ 271 $ — $ 367 Collectively evaluated for impairment $ 395 $ 877 $ 290 $ 1,486 $ 24 $ 478 $ 181 $ 3,731 Loans Individually evaluated for impairment $ 421 $ 292 $ 58 $ 815 $ — $ 2,692 $ 4,278 Collectively evaluated for impairment 38,951 96,746 24,122 135,394 3,682 92,725 391,620 Ending balance $ 39,372 $ 97,038 $ 24,180 $ 136,209 $ 3,682 $ 95,417 $ 395,898 December 31, 2017 Individually evaluated for impairment $ 423 $ 124 $ 36 $ 778 $ — $ 2,779 $ 4,140 Collectively evaluated for impairment 48,041 104,262 24,477 122,709 6,613 88,543 394,645 Ending balance $ 48,464 $ 104,386 $ 24,513 $ 123,487 $ 6,613 $ 91,322 $ 398,785
Schedule of the bank's credit exposure	Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2018 2017 2018 2017 2018 2017 Risk ratings 1 and 2 $ 11,449 $ 14,813 $ 12,253 $ 13,491 $ 8,392 $ 8,227 Risk rating 3 17,983 22,721 60,172 63,366 91,126 78,868 Risk rating 4 9,108 10,199 23,292 26,943 33,074 33,429 Risk rating 5 411 308 1,188 491 2,269 1,533 Risk rating 6 421 423 133 95 1,348 1,430 $ 39,372 $ 48,464 $ 97,038 $ 104,386 $ 136,209 $ 123,487 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2018 2017 2018 2017 2018 2017 Performing $ 24,180 $ 24,497 $ 3,682 $ 6,613 $ 94,875 $ 90,629 Nonperforming — 1 — — — 257 Nonaccrual — 15 — — 542 436 $ 24,180 $ 24,513 $ 3,682 $ 6,613 $ 95,417 $ 91,322
Schedule of information on TDRs	The following schedule provides information on loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three and six months periods ended June 30, 2018. There were no loans that were considered TDRs that were modified during the three and six months periods ended June 30, 2017: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 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 and industrial — $ — $ — 1 $ 39 $ 39 The following schedule provides information on TDRs as of June 30, 2018 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three month and six months ended June 30, 2018 that had been modified during the year prior to the default: Three Months Ended Six Months Ended (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial and industrial 1 $ 39 1 $ 39 The following schedule provides information on TDRs as of June 30, 2017 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three month and six months ended June 30, 2017 that had been modified during the year prior to the default: Three Months Ended Six Months Ended (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate — $ — 1 $ 128
Schedule of impaired loans	Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2018 With no related allowance recorded Agricultural $ 421 $ 455 $ — Commercial and industrial 61 61 — Consumer — — — Commercial real estate 53 55 — Residential real estate 110 122 — Subtotal 645 693 — With an allowance recorded Agricultural — — — Commercial and industrial 231 266 76 Consumer 58 59 1 Commercial real estate 762 849 28 Residential real estate 2,582 2,616 221 Subtotal 3,633 3,790 326 Total Agricultural 421 455 — Commercial and industrial 292 327 76 Consumer 58 59 1 Commercial real estate 815 904 28 Residential real estate 2,692 2,738 221 Total $ 4,278 $ 4,483 $ 326 December 31, 2017 With no related allowance recorded Agricultural $ 423 $ 455 $ — Commercial and industrial — — — Consumer — — — Commercial real estate 127 258 — Residential real estate 115 126 — Subtotal 665 839 — With an allowance recorded Agricultural — — — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 651 734 49 Residential real estate 2,664 2,690 224 Subtotal 3,475 3,584 302 Total Agricultural 423 455 — Commercial and industrial 124 124 26 Consumer 36 36 3 Commercial real estate 778 992 49 Residential real estate 2,779 2,816 224 Total $ 4,140 $ 4,423 $ 302
Schedule of average balances of impaired loans and interest recognized on impaired loans	The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the six months ended June 30, 2018 and 2017: Average Interest (Dollars in thousands) Recorded Income Investment Recognized June 30, 2018 With no related allowance recorded Agricultural $ 423 $ — Commercial and industrial 20 2 Consumer 3 — Commercial real estate 79 — Residential real estate 137 1 Subtotal 662 3 With an allowance recorded Agricultural — — Commercial and industrial 215 8 Consumer 43 1 Commercial real estate 733 22 Residential real estate 2,633 63 Subtotal 3,624 94 Agricultural 423 — Commercial and industrial 235 10 Consumer 46 1 Commercial real estate 812 22 Residential real estate 2,770 64 Total $ 4,286 $ 97 June 30, 2017 With no related allowance recorded Agricultural $ 308 $ — Commercial and industrial 186 — Consumer — — Commercial real estate 181 — Residential real estate 158 2 Subtotal 833 2 With an allowance recorded Agricultural 175 — Commercial and industrial 182 1 Consumer 31 1 Commercial real estate 853 17 Residential real estate 2,590 56 Subtotal 3,831 75 Agricultural 483 — Commercial and industrial 368 1 Consumer 31 1 Commercial real estate 1,034 17 Residential real estate 2,748 58 Total $ 4,664 $ 77
Schedule of aging analysis of loans by loan category	An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing June 30, 2018 Agricultural $ — $ — $ 421 $ 421 $ 38,951 $ 39,372 $ — Commercial and industrial — — 39 39 96,999 97,038 — Consumer 93 — — 93 24,087 24,180 — Commercial real estate 84 79 — 163 136,046 136,209 — Construction real estate 268 — — 268 3,414 3,682 — Residential real estate 694 475 66 1,235 94,182 95,417 — $ 1,139 $ 554 $ 526 $ 2,219 $ 393,679 $ 395,898 $ — December 31, 2017 Agricultural $ — $ — $ 83 $ 83 $ 48,381 $ 48,464 $ — Commercial and industrial 20 — — 20 104,366 104,386 — Consumer 142 38 1 181 24,332 24,513 — Commercial real estate 95 58 69 222 123,265 123,487 — Construction real estate — — — — 6,613 6,613 — Residential real estate 585 272 296 1,153 90,169 91,322 258 $ 842 $ 368 $ 449 $ 1,659 $ 397,126 $ 398,785 $ 258 (1) Includes nonaccrual loans.
Schedule of nonaccrual loans by loan category	Nonaccrual loans by loan category follow: (Dollars in thousands) June 30, December 31, 2018 2017 Agricultural $ 421 $ 423 Commercial and industrial 39 — Consumer — 15 Commercial real estate 138 222 Construction real estate — — Residential real estate 542 436 $ 1,140 $ 1,096

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per share	NOTE 4 - EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30, June 30, 2018 2017 2018 2017 Basic Earnings Per Share Net income available to common shareholders $ 1,833 $ 1,635 $ 3,491 $ 3,081 Weighted average common shares outstanding 3,613,398 3,622,290 3,614,197 3,618,729 Basic earnings per share $ 0.51 $ 0.45 $ 0.97 $ 0.85 Diluted Earnings Per Share Net income available to common shareholders $ 1,833 $ 1,635 $ 3,491 $ 3,081 Weighted average common shares outstanding 3,613,398 3,622,290 3,614,197 3,618,729 Plus dilutive stock options and restricted stock units 12,550 4,049 10,463 3,482 Weighted average common shares outstanding and potentially dilutive shares 3,625,948 3,626,339 3,624,660 3,622,211 Diluted earnings per share $ 0.50 $ 0.45 $ 0.96 $ 0.85

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, All Other Investments [Abstract]
Schedule of carrying value and fair value of financial assets and liabilities	Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) June 30, 2018 Assets: Cash and due from banks $ 11,877 $ 11,877 $ 11,877 $ — $ — Equity securities at fair value 3,338 3,338 1,838 — 1,500 Securities available for sale 161,687 161,687 — 150,348 11,339 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 617 647 — 647 — Loans to other financial institutions 9,006 9,006 — 9,006 — Loans, net 391,239 390,988 — — 390,988 Accrued interest receivable 2,220 2,220 — 2,220 — Liabilities: Noninterest-bearing deposits 147,040 147,040 — 147,040 — Interest-bearing deposits 380,881 379,501 — 379,501 — Federal funds purchased 4,000 4,000 — 4,000 — Federal Home Loan Bank advances 20,251 20,259 — 20,259 — Accrued interest payable 98 98 — 98 — December 31, 2017 Assets: Cash and due from banks $ 36,837 $ 36,837 $ 36,837 $ — $ — Securities available for sale 155,591 155,591 1,892 140,301 13,398 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,721 1,773 — 1,773 — Loans to other financial institutions 6,802 6,802 6,802 Loans, net 394,208 394,819 — — 394,819 Accrued interest receivable 2,146 2,146 — 2,146 — Liabilities: Noninterest-bearing deposits 151,462 151,462 — 151,462 — Interest-bearing deposits 388,391 387,343 — 387,343 — Repurchase agreements 7,148 7,148 — 7,148 — Federal Home Loan Bank advances 20,268 20,271 — 20,271 — Accrued interest payable 49 49 — 49 —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of assets measured at fair value on a recurring basis	There were no liabilities measured at fair value as of June 30, 2018 or December 31, 2017. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Equity Securities Held at Fair Value - June 30, 2018 Equity securities $ 1,838 $ — $ 1,500 $ 3,338 Investment Securities, Available for Sale – June 30, 2018 U.S. Treasury notes and bonds $ — $ 1,919 $ — $ 1,919 U.S. Government and federal agency — 33,128 — 33,128 State and municipal — 92,266 11,339 103,605 Mortgage-backed — 17,912 — 17,912 Corporate — 5,067 — 5,067 Asset backed securities — 56 — 56 Total $ — $ 150,348 $ 11,339 $ 161,687 Investment Securities, Available for Sale - December 31, 2017 U.S. Treasury notes and bonds $ — $ 1,960 $ — $ 1,960 U.S. Government and federal agency — 35,126 — 35,126 State and municipal — 88,150 11,898 100,048 Mortgage-backed — 9,820 — 9,820 Corporate — 5,151 — 5,151 Equity securities 1,892 — 1,500 3,392 Asset backed securities — 94 — 94 Total $ 1,892 $ 140,301 $ 13,398 $ 155,591
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) 2018 2017 Investment Securities Balance, January 1 $ 13,398 $ 15,103 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income (246 ) 162 Net purchases, sales, calls, and maturities (313 ) (407 ) Net transfers into Level 3 — — Balance, June 30 $ 12,839 $ 14,858
Schedule of assets measured at fair value on a nonrecurring basis	Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans June 30, 2018 $ 4,278 $ — $ — $ 4,278 December 31, 2017 $ 4,140 $ — $ — $ 4,140 Other Real Estate June 30, 2018 $ 179 $ — $ — $ 179 December 31, 2017 $ 106 $ — $ — $ 106

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)shares
Directors' Stock Purchase Plan [Member]
Property, Plant and Equipment [Line Items]
Shares issued during the period, shares	2,709
Shares issued during the period, value | $	$ 68,000
EmployeeStockOptionMember
Property, Plant and Equipment [Line Items]
Shares issued upon exercise of options	1,824
Shares issued during period under Employee Stock Purchase Plan, value | $	$ 40,000
Restricted Stock [Member]
Property, Plant and Equipment [Line Items]
Shares issued during the period upon vesting	7,304
Vesting period	3 years

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		$ 164,560	$ 155,423
Gross Unrealized Gains		389	1,229
Gross Unrealized Losses		(2,876)	(1,061)
Fair Value		161,687	155,591
U.S. Government and Federal Agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		34,099	35,518
Gross Unrealized Losses		(971)	(392)
Fair Value		33,128	35,126
U.S. Treasury Notes and Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,991	1,991
Gross Unrealized Losses		(72)	(31)
Fair Value		1,919	1,960
State and Municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		104,958	99,609
Gross Unrealized Gains		378	910
Gross Unrealized Losses		(1,731)	(471)
Fair Value		103,605	100,048
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		18,310	9,943
Gross Unrealized Gains		11	8
Gross Unrealized Losses		(409)	(131)
Fair Value		17,912	9,820
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		5,146	5,184
Gross Unrealized Gains			2
Gross Unrealized Losses		(79)	(35)
Fair Value		5,067	5,151
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		3,002	3,083
Gross Unrealized Gains		336	309
Fair Value	[1]	3,338	3,392
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		56	95
Gross Unrealized Losses			(1)
Fair Value		$ 56	$ 94
[1]	The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 21%

SECURITIES (Details 1)

SECURITIES (Details 1) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Available for Sale Securities, Fair Values
Less than 1 Year		$ 29,202
1 Year - 5 Years		76,630
5 Years - 10 Years		54,838
More than 10 Years		4,355
Securities available for sale		161,687	$ 155,591
U.S. Government and Federal Agency [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		16,460
1 Year - 5 Years		9,888
5 Years - 10 Years		6,780
Securities available for sale		$ 33,128	35,126
Weighted average yields
Less than 1 year		2.19%
1 year to 5 years		1.78%
5 years to 10 years		2.67%
Total		2.17%
U.S. Treasury Notes and Bonds [Member]
Available for Sale Securities, Fair Values
1 Year - 5 Years		$ 1,919
Securities available for sale		$ 1,919	1,960
Weighted average yields
1 year to 5 years		1.85%
Total		1.85%
State and Municipal [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 10,694
1 Year - 5 Years		50,580
5 Years - 10 Years		40,314
More than 10 Years		2,017
Securities available for sale		$ 103,605	100,048
Weighted average yields
Less than 1 year	[1],[2]	3.10%
1 year to 5 years	[1],[2]	3.05%
5 years to 10 years	[1],[2]	3.58%
More than 10 years	[1],[2]	1.22%
Total	[1],[2]	3.23%
Corporate [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 1,992
1 Year - 5 Years		2,587
5 Years - 10 Years		488
Securities available for sale		$ 5,067	5,151
Weighted average yields
1 year to 5 years		2.48%
5 years to 10 years		3.21%
Total		1.58%
Asset-backed Securities [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 56
Securities available for sale		$ 56	94
Weighted average yields
Less than 1 year		2.59%
Total		2.59%
Total Debt Securities [Member]
Available for Sale Securities, Fair Values
Less than 1 Year		$ 29,202
1 Year - 5 Years		64,974
5 Years - 10 Years		47,582
More than 10 Years		2,017
Securities available for sale		143,775	142,379
Mortgage-backed [Member]
Available for Sale Securities, Fair Values
1 Year - 5 Years		11,656
5 Years - 10 Years		6,256
Securities available for sale		$ 17,912	9,820
Weighted average yields
1 year to 5 years		2.92%
5 years to 10 years		3.01%
Total		2.95%
Equity Securities [Member]
Available for Sale Securities, Fair Values
5 Years - 10 Years	[2]	$ 1,000
More than 10 Years	[2]	2,338
Securities available for sale	[2]	$ 3,338	$ 3,392
Weighted average yields
5 years to 10 years	[1]	4.78%
More than 10 years	[1]	1.07%
Total	[1]	2.18%
[1]	Equity securities are preferred and common stock that may or may not have a stated maturity.
[2]	The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 21%

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Securities
Net gains and losses recognized during the period	$ 26	$ 58
Less: Net gains and losses recognized during the period on securities sold		9
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date	$ 26	$ 49

LOANS AND ALLOWANCE FOR LOAN 27

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Allowance for Loan Losses
Beginning balance	$ 4,709		$ 4,577	$ 4,277
Charge-offs	(116)		(188)	(533)
Recoveries	66		236	329
Provision			35	25
Ending balance	4,659	$ 4,098	4,659	4,098
Individually evaluated for impairment	326	367	326	367
Collectively evaluated for impairment	4,333	3,731	4,333	3,731
Loans
Individually evaluated for impairment	4,278		4,278		$ 4,140
Collectively evaluated for impairment	391,620		391,620		394,645
Loans	395,898		395,898		398,785
Agricultural [Member]
Allowance for Loan Losses
Beginning balance	350	406	506	433
Charge-offs
Recoveries
Provision	9	(11)	(147)	(38)
Ending balance	359	395	359	395
Individually evaluated for impairment
Collectively evaluated for impairment	359	395	359	395
Loans
Individually evaluated for impairment	421		421		423
Collectively evaluated for impairment	38,951		38,951		48,041
Loans	39,372		39,372		48,464
Commercial and Industrial [Member]
Allowance for Loan Losses
Beginning balance	1,005	745	1,001	688
Charge-offs	(57)	(352)	(58)	(362)
Recoveries			53
Provision	22	511	(26)	578
Ending balance	970	904	970	904
Individually evaluated for impairment	76	27	76	27
Collectively evaluated for impairment	894	877	894	877
Loans
Individually evaluated for impairment	292		292		124
Collectively evaluated for impairment	96,746		96,746		104,262
Loans	97,038		97,038		104,386
Consumer [Member]
Allowance for Loan Losses
Beginning balance	245	286	262	305
Charge-offs	(50)	(57)	(118)	(137)
Recoveries	15	39	51	91
Provision	(5)	26	10	35
Ending balance	205	294	205	294
Individually evaluated for impairment	1	4	1	4
Collectively evaluated for impairment	204	290	204	290
Loans
Individually evaluated for impairment	58		58		36
Collectively evaluated for impairment	24,122		24,122		24,477
Loans	24,180		24,180		24,513
Commercial Real Estate [Member]
Allowance for Loan Losses
Beginning balance	1,786	1,414	1,761	1,438
Charge-offs
Recoveries	3	49	59	161
Provision	122	88	91	(48)
Ending balance	1,911	1,551	1,911	1,551
Individually evaluated for impairment	28	65	28	65
Collectively evaluated for impairment	1,883	1,486	1,883	1,486
Loans
Individually evaluated for impairment	815		815		778
Collectively evaluated for impairment	135,394		135,394		122,709
Loans	136,209		136,209		123,487
Construction Real Estate [Member]
Allowance for Loan Losses
Beginning balance	18	23	35	62
Charge-offs
Recoveries		40
Provision	(2)	(39)	(19)	40
Ending balance	16	(78)	16	(78)
Individually evaluated for impairment
Collectively evaluated for impairment	16	24	16	24
Loans
Collectively evaluated for impairment	3,682		3,682		6,613
Loans	3,682		3,682		6,613
Residential Real Estate [Member]
Allowance for Loan Losses
Beginning balance	625	727	726	1,014
Charge-offs	(9)		(13)	(34)
Recoveries	48	29	73	37
Provision	(44)	(7)	(166)	(268)
Ending balance	620	749	620	749
Individually evaluated for impairment	221	271	221	271
Collectively evaluated for impairment	399	478	399	478
Loans
Individually evaluated for impairment	2,692		2,692		2,779
Collectively evaluated for impairment	92,725		92,725		88,543
Loans	95,417		95,417		$ 91,322
Unallocated [Member]
Allowance for Loan Losses
Beginning balance	680	724	286	337
Charge-offs
Recoveries
Provision	(102)	(543)	292	(156)
Ending balance	578	181	578	181
Individually evaluated for impairment
Collectively evaluated for impairment	$ 577	$ 181	$ 577	$ 181

LOANS AND ALLOWANCE FOR LOAN 28

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 395,898	$ 398,785
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	39,372	48,464
Agricultural [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	11,449	14,813
Agricultural [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	17,983	22,721
Agricultural [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	9,108	10,199
Agricultural [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	411	308
Agricultural [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	421	423
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	97,038	104,386
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	12,253	13,491
Commercial and Industrial [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	60,172	63,366
Commercial and Industrial [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	23,292	26,943
Commercial and Industrial [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	1,188	491
Commercial and Industrial [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	133	95
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	136,209	123,487
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	8,392	8,227
Commercial Real Estate [Member] | Risk rating 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	91,126	78,868
Commercial Real Estate [Member] | Risk rating 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	33,074	33,429
Commercial Real Estate [Member] | Risk rating 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	2,269	1,533
Commercial Real Estate [Member] | Risk rating 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 1,348	$ 1,430

LOANS AND ALLOWANCE FOR LOAN 29

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 395,898	$ 398,785
Nonaccrual past due loans	1,140	1,096
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	24,180	24,513
Nonaccrual past due loans		15
Consumer [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	24,180	24,497
Consumer [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans		1
Construction Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	3,682	6,613
Construction Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	3,682	6,613
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	95,417	91,322
Nonaccrual past due loans	542	436
Residential Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans	$ 94,875	90,629
Residential Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Risk rated loans		$ 257

LOANS AND ALLOWANCE FOR LOAN 30

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)N
Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | N			1
Pre-Modification Outstanding Recorded Investment			$ 39
Post Modification Oustanding Recorded Investment			39
Recorded Investment with payment defaults during period	$ 39		$ 39
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | N			1
Recorded Investment with payment defaults during period			$ 128

LOANS AND ALLOWANCE FOR LOAN 31

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	$ 645		$ 665
Unpaid Principal Balance with no related allowance recorded	693		839
Average Recorded Investment with no related allowance recorded	662	$ 833
Interest Income Recognized with no related allowance recorded	1	2
Recorded Investment with an allowance recorded	3,633		3,475
Unpaid Principal Balance with an allowance recorded	3,790		3,584
Related Allowance	326		302
Average Recorded Investment with an allowance recorded	3,624	3,831
Interest Income Recognized with an allowance recorded	94	75
Recorded Investment	4,278		4,140
Unpaid Principal Balance	4,483		4,423
Related Allowance	326		302
Average Recorded Investment	4,286	4,664
Interest Income Recognized	97	77
Agricultural [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	421		423
Unpaid Principal Balance with no related allowance recorded	455		455
Average Recorded Investment with no related allowance recorded	423	308
Interest Income Recognized with no related allowance recorded		3
Average Recorded Investment with an allowance recorded		175
Recorded Investment	421		423
Unpaid Principal Balance	455		455
Average Recorded Investment	423	483
Commercial and Industrial [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	61
Unpaid Principal Balance with no related allowance recorded	61
Average Recorded Investment with no related allowance recorded	20	186
Interest Income Recognized with no related allowance recorded		1
Recorded Investment with an allowance recorded	231		124
Unpaid Principal Balance with an allowance recorded	266		124
Related Allowance	76		26
Average Recorded Investment with an allowance recorded	215	182
Interest Income Recognized with an allowance recorded	8	1
Recorded Investment	294		124
Unpaid Principal Balance	327		124
Related Allowance	76		26
Average Recorded Investment	235	368
Interest Income Recognized	10	1
Consumer [Member]
Impaired and Restructured Loans with or without related allowance recorded
Average Recorded Investment with no related allowance recorded	3
Interest Income Recognized with no related allowance recorded	2
Recorded Investment with an allowance recorded	58		36
Unpaid Principal Balance with an allowance recorded	59		36
Related Allowance	1		3
Average Recorded Investment with an allowance recorded	43	31
Interest Income Recognized with an allowance recorded	1	1
Recorded Investment	58		36
Unpaid Principal Balance	59		36
Related Allowance	1		3
Average Recorded Investment	46	31
Interest Income Recognized	1	1
Commercial Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	53		127
Unpaid Principal Balance with no related allowance recorded	55		258
Average Recorded Investment with no related allowance recorded	79	181
Recorded Investment with an allowance recorded	762		651
Unpaid Principal Balance with an allowance recorded	849		734
Related Allowance	28		49
Average Recorded Investment with an allowance recorded	733	853
Interest Income Recognized with an allowance recorded	22	17
Recorded Investment	815		778
Unpaid Principal Balance	904		992
Related Allowance	28		49
Average Recorded Investment	812	1,034
Interest Income Recognized	22	17
Residential Real Estate [Member]
Impaired and Restructured Loans with or without related allowance recorded
Recorded Investment with no related allowance recorded	110		115
Unpaid Principal Balance with no related allowance recorded	122		126
Average Recorded Investment with no related allowance recorded	137	158
Interest Income Recognized with no related allowance recorded		2
Recorded Investment with an allowance recorded	2,582		2,664
Unpaid Principal Balance with an allowance recorded	2,616		2,690
Related Allowance	221		224
Average Recorded Investment with an allowance recorded	2,633	2,590
Interest Income Recognized with an allowance recorded	63	56
Recorded Investment	2,692		2,779
Unpaid Principal Balance	2,738		2,816
Related Allowance	221		$ 224
Average Recorded Investment	2,770	2,748
Interest Income Recognized	$ 64	$ 58

LOANS AND ALLOWANCE FOR LOAN 32

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands		Jun. 30, 2018		Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		$ 2,219		$ 1,659
Loans Not Past Due		393,679		397,126
Loans		395,898		398,785
Loans 90 Days Past Due and Accruing				258
30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,139		842
60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		554		368
Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	526		449
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		39		20
Loans Not Past Due		96,999		104,366
Loans		97,038		104,386
Commercial and Industrial [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total				20
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		421		83
Loans Not Past Due		38,951		48,381
Loans		39,372		48,464
Agricultural [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		421	[1]	83
Loans Not Past Due	[1]	39
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		93		181
Loans Not Past Due		24,087		24,332
Loans		24,180		24,513
Consumer [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		93		142
Consumer [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total				38
Consumer [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]			1
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		163		222
Loans Not Past Due		136,046		123,265
Loans		136,209		123,487
Commercial Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		84		95
Commercial Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		79		58
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]			69
Construction Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		268
Loans Not Past Due		3,414		6,613
Loans		3,682		6,613
Construction Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		268
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		1,235		1,153
Loans Not Past Due		94,182		90,169
Loans		95,417		91,322
Loans 90 Days Past Due and Accruing				258
Residential Real Estate [Member] | 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		694		585
Residential Real Estate [Member] | 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total		475		272
Residential Real Estate [Member] | Greater Than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due Total	[1]	$ 66		$ 296
[1]	Includes nonaccrual loans.

LOANS AND ALLOWANCE FOR LOAN 33

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 1,140	$ 1,096
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	421	423
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	39
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans		15
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	138	222
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans	$ 542	$ 436

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic Earnings Per Share
Net income available to common shareholders	$ 1,833	$ 1,635	$ 3,491	$ 3,081
Weighted average common shares outstanding	3,613,398	3,622,290	3,614,197	3,618,729
Basic earnings per common shares	$ 0.51	$ 0.45	$ 0.97	$ 0.85
Diluted Earnings Per Share
Net income available to common shareholders	$ 1,833	$ 1,635	$ 3,491	$ 3,081
Weighted average common shares outstanding	3,613,398	3,622,290	3,614,197	3,618,729
Plus dilutive stock options and restricted stock units	12,550	4,049	10,463	3,482
Weighted average common shares outstanding and potentially dilutive shares	3,625,948	3,626,339	3,624,660	3,622,211
Diluted earnings per common share	$ 0.5	$ 0.45	$ 0.96	$ 0.85

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	May 31, 2018	May 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Dilutive stock options excluded in calculation of earnings per share			0	31,500	15,000	47,250
Stock dividend percent	5.00%	5.00%

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets:
Securities available for sale	$ 161,687	$ 155,591
Loans to other financial institutions	9,006	6,802
Liabilities:
Noninterest-bearing deposits	147,040	151,462
Interest-bearing deposits	380,881	388,391
Federal funds purchased	4,000
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Cash and due from banks	11,877	36,837
Equity securities at fair value	1,838
Securities available for sale		1,892
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Securities available for sale	150,348	140,301
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	647	1,773
Loans to other financial institutions	9,006	6,802
Accrued interest receivable	2,220	2,146
Liabilities:
Noninterest-bearing deposits	147,040	151,462
Interest-bearing deposits	379,501	387,343
Repurchase agreements		7,148
Federal Home Loan Bank advances	20,259	20,271
Accrued interest payable	98	49
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Equity securities at fair value	1,500
Securities available for sale	11,339	13,398
Loans, net	390,988	394,819
Carrying Amount [Member]
Assets:
Cash and due from banks	11,877	36,837
Equity securities at fair value	3,338
Securities available for sale	161,687	155,591
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	617	1,721
Loans to other financial institutions	9,006	6,802
Loans, net	391,239	394,208
Accrued interest receivable	2,220	2,146
Liabilities:
Noninterest-bearing deposits	147,040	151,462
Interest-bearing deposits	380,881	388,391
Federal funds purchased	4,000
Repurchase agreements		7,148
Federal Home Loan Bank advances	20,251	20,268
Accrued interest payable	98	49
Estimated Fair Value [Member]
Assets:
Cash and due from banks	11,877	36,837
Equity securities at fair value	3,338
Securities available for sale	161,687	155,591
Federal Home Loan Bank and Federal Reserve Bank stock	3,567	3,567
Loans held for sale	647	1,773
Loans to other financial institutions	9,006	6,802
Loans, net	390,988	394,819
Accrued interest receivable	2,220	2,146
Liabilities:
Noninterest-bearing deposits	147,040	151,462
Interest-bearing deposits	379,501	387,343
Repurchase agreements		7,148
Federal Home Loan Bank advances	20,259	20,271
Accrued interest payable	$ 98	$ 49

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		$ 161,687	$ 155,591
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	[1]	3,338	3,392
U.S. Treasury Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		1,919	1,960
U.S. Government and Federal Agency [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		33,128	35,126
State and Municipal [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		103,605	100,048
Mortgage-backed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		17,912	9,820
Corporate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		5,067	5,151
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		56	94
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			1,892
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		150,348	140,301
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		11,339	13,398
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		161,687	155,591
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			3,392
Securities Held at Fair Value		3,338
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		1,919	1,960
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		33,128	35,126
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		103,605	100,048
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		17,912	9,820
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		5,067	5,151
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		56	94
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			1,892
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			1,892
Securities Held at Fair Value		1,838
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		150,348	140,301
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		1,919	1,960
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		33,128	35,126
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		92,266	88,150
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		17,912	9,820
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		5,067	5,151
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		56	94
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		11,339	13,398
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
Securities Held at Fair Value		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		$ 11,339	$ 11,898
[1]	The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 21%

FAIR VALUE MEASUREMENTS (Deta38

FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
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	$ 84
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	13,398	$ 15,103
Total unrealized gains (losses) included in other comprehensive income	(246)	162
Net purchases, sales, calls, and maturities	(313)	(407)
Balance at the end of year	$ 12,839	$ 14,858

FAIR VALUE MEASUREMENTS (Deta39

FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	$ 4,278	$ 4,140
Other real estate owned, net	179	106
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans	4,278	4,140
Other real estate owned, net	$ 179	$ 106

FAIR VALUE MEASUREMENTS (Deta40

FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Fair Value Disclosures [Abstract]
Total unrealized gains (losses) included in other comprehensive income	$ 84
Purchased during period	$ 231,000