Hawthorn Bancshares (HWBK) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 30, 2017	Jun. 30, 2016
Document And Entity Information Abstract
Entity Registrant Name	HAWTHORN BANCSHARES, INC.
Entity Central Index Key	893,847
Trading Symbol	hwbk
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		5,615,207
Entity Public Float			$ 54,155,055
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 25,589	$ 20,484
Federal funds sold and other overnight interest-bearing deposits	1,406	7,893
Cash and cash equivalents	26,995	28,377
Investment in available-for-sale securities, at fair value	214,512	235,054
Other investments and securities, at cost	9,796	8,037
Total investment securities	224,308	243,091
Loans	974,029	865,080
Allowances for loan losses	(9,886)	(8,604)
Net loans	964,143	856,476
Premises and equipment - net	35,522	36,389
Mortgage servicing rights	2,584	2,847
Other real estate owned and repossessed assets - net	14,162	15,992
Accrued interest receivable	5,183	4,853
Cash surrender value - life insurance	2,409	2,348
Other assets	11,742	10,548
Total assets	1,287,048	1,200,921
Deposits
Non-interest bearing demand	235,975	208,035
Savings, interest checking and money market	468,731	441,080
Time deposits $100,000 and over	152,256	132,244
Other time deposits	153,704	165,838
Total deposits	1,010,666	947,197
Federal funds purchased and securities sold under agreements to repurchase	31,015	56,834
Federal Home Loan Bank advances and other borrowings	93,392	50,000
Subordinated notes	49,486	49,486
Accrued interest payable	498	382
Other liabilities	10,974	9,736
Total liabilities	1,196,031	1,113,635
Stockholders' equity:
Common stock, $1 par value, authorized 15,000,000 shares; issued 5,822,357 and 5,605,203 shares, respectively	5,822	5,605
Surplus	41,498	38,549
Retained earnings	51,671	48,700
Accumulated other comprehensive loss, net of tax	(3,801)	(2,018)
Treasury stock; 205,750 and 164,013 shares, at cost, respectively	(4,173)	(3,550)
Total stockholders' equity	91,017	87,286
Total liabilities and stockholders' equity	$ 1,287,048	$ 1,200,921

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	5,822,357	5,605,203
Treasury stock, shares	205,750	164,013

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
INTEREST INCOME
Interest and fees on loans	$ 41,854	$ 41,267	$ 40,274
Interest on investment securities:
Taxable	3,238	3,554	3,394
Nontaxable	521	681	722
Federal funds sold and other overnight interest-bearing deposits	80	38	28
Dividends on other securities	317	216	80
Total interest income	46,010	45,756	44,498
Interest on deposits:
Savings, interest checking and money market	1,158	970	968
Time deposit accounts $100,000 and over	981	867	940
Other time deposits	928	1,090	1,384
Interest on federal funds purchased and securities sold under agreements to repurchase	64	56	21
Interest on subordinated notes	1,494	1,293	1,264
Interest on Federal Home Loan Bank advances	1,038	723	467
Total interest expense	5,663	4,999	5,044
Net interest income	40,347	40,757	39,454
Provision for loan losses	1,425	250	0
Net interest income after provision for loan losses	38,922	40,507	39,454
NON-INTEREST INCOME
Service charges and other fees	3,400	3,477	3,743
Bank card income and fees	2,547	2,455	2,368
Trust department income	952	929	844
Real estate servicing fees, net	325	573	319
Gain on sale of mortgage loans, net	851	1,386	1,093
Gain on sale of investment securities	602	8	20
Other	240	338	362
Total non-interest income	8,917	9,166	8,749
NON-INTEREST EXPENSE
Salaries and employee benefits	20,850	20,792	20,377
Occupancy expense, net	2,751	2,792	2,660
Furniture and equipment expense	1,783	1,844	1,823
Processing, network, and bank card expense	3,309	3,363	3,203
Legal, examination, and professional fees	1,301	1,321	1,159
FDIC insurance assessment	567	867	933
Advertising and promotion	1,083	1,111	1,274
Postage, printing, and supplies	1,054	1,120	1,117
Real estate foreclosure (gains) expense, net	370	(223)	845
Loan expenses	609	423	303
Other	3,130	3,084	2,813
Total non-interest expense	36,807	36,494	36,507
Income before income taxes	11,032	13,179	11,696
Income tax expense	3,750	4,580	4,042
Net income	$ 7,282	$ 8,599	$ 7,654
Basic earnings per share (in dollars per share)	$ 1.29	$ 1.52	$ 1.35
Diluted earnings per share (in dollars per share)	$ 1.29	$ 1.52	$ 1.35

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Comprehensive Income
Net income	$ 7,282	$ 8,599	$ 7,654
Securities available for sale:
Unrealized (loss) gain on investment securities available-for-sale, net of tax	(972)	(800)	1,717
Adjustment for gain on sales of investment securities, net of tax	(373)	(5)	(12)
Defined benefit pension plans:
Net (loss) gain arising during the year, net of tax	(487)	3	(2,212)
Amortization of prior service cost included in net periodic pension cost, net of tax	49	12	48
Total other comprehensive loss	(1,783)	(790)	(459)
Total comprehensive income	$ 5,499	$ 7,809	$ 7,195

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Total
Balance at Dec. 31, 2013	$ 5,195	$ 33,385	$ 40,086	$ (769)	$ (3,517)	$ 74,380
Increase (Decrease) in Stockholders' Equity
Net income	0	0	7,654	0	0	7,654
Other comprehensive loss	0	0	0	(459)	0	(459)
Stock based compensation expense	0	20	0	0	0	20
Stock dividend	201	2,496	(2,697)	0	0	0
Cash dividends declared, common stock	0	0	(1,027)	0	0	(1,027)
Balance at Dec. 31, 2014	5,396	35,901	44,016	(1,228)	(3,517)	80,568
Increase (Decrease) in Stockholders' Equity
Net income	0	0	8,599	0	0	8,599
Other comprehensive loss	0	0	0	(790)	0	(790)
Stock based compensation expense	0	10	0	0	0	10
Stock dividend	209	2,638	(2,847)	0	0	0
Purchase of treasury stock	0	0	0	0	(33)	(33)
Cash dividends declared, common stock	0	0	(1,068)	0	0	(1,068)
Balance at Dec. 31, 2015	5,605	38,549	48,700	(2,018)	(3,550)	87,286
Increase (Decrease) in Stockholders' Equity
Net income	0	0	7,282	0	0	7,282
Other comprehensive loss	0	0	0	(1,783)	0	(1,783)
Stock based compensation expense	0	17	0	0	0	17
Stock dividend	217	2,932	(3,149)	0	0	0
Purchase of treasury stock	0	0	0	0	(623)	(623)
Cash dividends declared, common stock	0	0	(1,162)	0	0	(1,162)
Balance at Dec. 31, 2016	$ 5,822	$ 41,498	$ 51,671	$ (3,801)	$ (4,173)	$ 91,017

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 7,282	$ 8,599	$ 7,654
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,425	250	0
Depreciation expense	1,782	1,810	1,758
Net amortization of investment securities, premiums, and discounts	1,903	1,317	1,058
Stock based compensation expense	17	10	20
Change in fair value of mortgage servicing rights	529	301	576
Gain on sale of investment securities	(602)	(8)	(20)
Gain on sales and dispositions of premises and equipment	(1)	(8)	(60)
Gain on sales and dispositions of other real estate owned and repossessed assets	(207)	(156)	(188)
Provision for other real estate owned	213	17	585
(Increase) decrease in accrued interest receivable	(330)	(37)	183
Increase in cash surrender value - life insurance	(61)	(64)	(71)
Decrease (increase) in other assets	10	1,212	(479)
Decrease (increase) in income tax receivable	307	621	(826)
Increase (decrease) in accrued interest payable	116	9	(53)
Increase in other liabilities	387	911	966
Origination of mortgage loans for sale	(36,017)	(51,307)	(35,434)
Proceeds from the sale of mortgage loans	37,896	51,503	36,623
Gain on sale of mortgage loans, net	(851)	(1,386)	(1,093)
Other, net	(267)	(252)	2,355
Net cash provided by operating activities	13,531	13,342	13,554
Cash flows from investing activities:
Net increase in loans	(112,353)	(9,226)	(28,357)
Purchase of available-for-sale debt securities	(113,357)	(102,367)	(48,942)
Proceeds from maturities of available-for-sale debt securities	51,855	36,143	23,702
Proceeds from calls of available-for-sale debt securities	17,855	26,840	28,605
Proceeds from sales of available-for-sale debt securities	60,720	720	5,334
Proceeds from sales of FHLB stock	0	1,600	439
Purchases of FHLB stock	(1,759)	(4,915)	(1,160)
Purchases of premises and equipment	(1,262)	(872)	(1,342)
Proceeds from sales of premises and equipment	9	11	65
Proceeds from sales of other real estate owned and repossessed assets	4,057	1,836	4,560
Net cash used by investing activities	(94,235)	(50,230)	(17,096)
Cash flows from financing activities:
Net increase in demand deposits	27,940	335	20,318
Net increase (decrease) in interest-bearing transaction accounts	27,651	(1,051)	22,974
Net increase (decrease) in time deposits	7,878	(21,601)	(30,249)
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase	(25,327)	38,864	(13,114)
Repayment of FHLB advances	(24,000)	(85,000)	(10,000)
FHLB advances	66,900	92,000	29,000
Purchase of treasury stock	(623)	(33)	0
Cash dividends paid - common stock	(1,097)	(1,058)	(1,017)
Net cash provided by financing activities	79,322	22,456	17,912
Net (decrease) increase in cash and cash equivalents	(1,382)	(14,432)	14,370
Cash and cash equivalents, beginning of year	28,377	42,809	28,439
Cash and cash equivalents, end of year	26,995	28,377	42,809
Cash paid during the year for:
Interest	5,547	4,992	5,097
Income taxes	3,760	3,509	2,265
Supplemental schedule of noncash investing and financing activities:
Other real estate and repossessions acquired in settlement of loans	$ 2,233	$ 5,804	$ 1,975

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies Hawthorn Bancshares, Inc. (the Company) through its subsidiary, Hawthorn Bank (the Bank), provides a broad range of banking services to individual and corporate customers located within the communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, Branson, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions providing financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The accompanying consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP). The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for loan losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements. The significant accounting policies used by the Company in the preparation of the consolidated financial statements are summarized below: Principles of Consolidation In December of 2008 and March of 2010, the Company formed Hawthorn Real Estate, LLC, and Real Estate Holdings of Missouri, LLC, respectively (the Real Estate Companies); both are wholly owned subsidiaries of the Company. The consolidated financial statements include the accounts of the Company, Hawthorn Bank (the Bank), and the Real Estate Companies. All significant intercompany accounts and transactions have been eliminated in consolidation. Loans Loans that the Company has the intent and ability to hold for the foreseeable future or maturity are held for investment at their stated unpaid principal balance amount less unearned income and the allowance for loan losses. Income on loans is accrued on a simple-interest basis. Loan origination fees and certain direct costs are deferred and recognized over the life of the loan as an adjustment to yield. Loans Held for Sale The Bank originates certain loans, which are sold in the secondary market. These loans are classified as held for sale upon origination based on management’s intent to sell and are accounted for at the lower of adjusted cost or fair value. Adjusted cost reflects the funded loan amount and any loan origination costs and fees. In order to manage the risk associated with such activities, the Company upon locking in an interest rate with the borrower enters into an agreement to sell such loans in the secondary market. Loans held for sale are typically sold with servicing rights retained and without recourse except for normal and customary representation and warranty provisions. Mortgage loans held for sale were $162,000 at December 31, 2016 compared to $1.2 million loans held for sale at December 31, 2015. Impaired Loans A loan is considered impaired when it is probable the Company will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. Included in impaired loans are all non-accrual loans and loans whose terms have been modified in a troubled debt restructuring. Impaired loans are individually evaluated for impairment based on fair values of the underlying collateral, obtained through independent appraisals or internal valuations for a collateral dependent loan or by discounting the total expected future cash flows. Non-Accrual Loans Loans are placed on nonaccrual status when management believes that the borrower’s financial condition, after consideration of business conditions and collection efforts, is such that collection of interest is doubtful. Loans that are contractually 90 days past due as to principal and/or interest payments are generally placed on non-accrual, unless they are both well-secured and in the process of collection. Subsequent interest payments received on such loans are applied to principal if doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. A loan remains on nonaccrual status until the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current. Restructured Loans A loan is accounted for as a troubled debt restructuring (TDR) if the Company, for economic or legal reasons related to the borrowers’ financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves (1) modification of terms such as a reduction of the stated interest rate, loan principal, accrued interest, or an extended maturity date (2) a loan renewal at a stated interest rate lower than the current market rate for a new loan with similar risk, or (3) debt that was not reaffirmed in bankruptcy. Nonperforming TDRs are returned to performing status once the borrower demonstrates the ability to pay under the terms of the restructured note through a sustained period of repayment performance, which is generally six months. The Company includes all performing and non-performing TDRs in the impaired and non-performing asset totals. The Company measures the impairment loss of a TDR in the same manner as described below. TDRs which are performing under their contractual terms continue to accrue interest which is recognized in current earnings. Allowance for Loan Losses Management has identified the accounting policy related to the allowance for loan losses as critical to the understanding of the Company’s results of operations, since the application of this policy requires significant management assumptions and estimates that could result in materially different amounts to be reported if conditions or underlying circumstances were to change. The fair value of impaired loans deemed collateral dependent, for purposes of the measurement of the impairment loss, can be subject to changing market conditions, supply and demand, condition of the collateral and other factors over time. Such volatility can have an impact on the financial performance of the Company. Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. When loans become 90 days past due, they are generally placed on nonaccrual status or charged off unless extenuating circumstances justify leaving the loan on accrual basis. When loans reach 120 days past due and there is little likelihood of repayment, the uncollectible portion of the loans are charged off. Loan charge-offs reduce the allowance for loan losses, and recoveries of loans previously charged off are added back to the allowance. If management determines that it is probable that all amounts due on a loan will not be collected under the original terms of the loan agreement, the loan is considered to be impaired. The specific reserve component The incurred loss component Investment in Debt and Equity Securities At the time of purchase, debt securities are classified into one of two categories: available-for-sale or held-to-maturity. Held-to-maturity securities are those securities which the Company has the positive intent and ability to hold until maturity. All debt securities not classified as held-to-maturity are classified as available-for-sale. The Company’s securities are classified as available-for-sale and are carried at fair value. Changes in fair value, excluding certain losses associated with other-than-temporary impairment, are reported in other comprehensive income, net of taxes, a component of stockholders’ equity. Securities are periodically evaluated for other-than-temporary impairment in accordance with guidance provided in the FASB ASC Topic 320, Investments – Debt and Equity Securities. Premiums and discounts are amortized using the interest method over the lives of the respective securities, with consideration of historical and estimated prepayment rates for mortgage-backed securities, as an adjustment to yield. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings based on the specific identification method for determining the cost of securities sold. Capital Stock of the Federal Home Loan Bank The Bank, as a member of the Federal Home Loan Bank System administered by the Federal Housing Finance Agency, is required to maintain an investment in the capital stock of the Federal Home Loan Bank of Des Moines (FHLB) in an amount equal to 12 basis points of the Bank’s year-end total assets plus 4.00% of advances from the FHLB to the Bank. These investments are recorded at cost, which represents redemption value. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation applicable to buildings and improve-ments and furniture and equipment is charged to expense using straight-line and accelerated methods over the estimated useful lives of the assets. Such lives are estimated to be 5 to 40 years for buildings and improvements and 3 to 15 years for furniture and equipment. Maintenance and repairs are charged to expense as incurred. Mortgage Servicing Rights The Company originates and sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors or master servicer. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities. Mortgage servicing rights do not trade in an active market with readily observable prices. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies, ancillary income, and cost to service. These assumptions are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party valuation specialist firm. In addition to the changes in fair value of the mortgage servicing rights, the Company also recorded loan servicing fee income as part of real estate servicing fees, net in the statement of income. Loan servicing fee income represents revenue earned for servicing mortgage loans. The servicing fees are based on contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected. Corresponding loan servicing costs are changed to expense as incurred. Other Real Estate Owned and Repossessed Assets Other real estate owned and repossessed assets consist of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Other real estate owned assets are initially recorded as held for sale at the fair value of the collateral less estimated selling costs. Any adjustment is recorded as a charge-off against the allowance for loan losses. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. The write-downs are recorded as other real estate expense. The Company establishes a valuation allowance related to other real estate owned on an asset-by-asset basis. The valuation allowance is created during the holding period when the fair value less cost to sell is lower than the cost of the property. Pension Plan The Company provides a noncontributory defined benefit pension plan for all full-time employees. The benefits are based on age, years of service and the level of compensation during the employees highest ten years of compensation before retirement. Net periodic costs are recognized as employees render the services necessary to earn the retirement benefits. The Company records annual amounts relating to its pension plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Company reviews its assumptions on an annual basis and may make modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions. The Company follows authoritative guidance included in the FASB ASC Topic 715, Compensation – Retirement Plans Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans Fair Value Measurements and Disclosures Income Taxes Income taxes are accounted for under the asset / liability method by recognizing the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Judgment is required in addressing the Company’s future tax consequences of events that have been recognized in the consolidated financial statements or tax returns such as realization of the effects of temporary differences, net operating loss carry forwards and changes in tax laws or interpretations thereof. A valuation allowance is established when in the judgment of management, it is more likely than not that such deferred tax assets will not become realizable. In this case, the Company would adjust the recorded value of our deferred tax asset, which would result in a direct charge to income tax expense in the period that the determination was made. Likewise, the Company would reverse the valuation allowance when it is expected to realize the deferred tax asset. The Company has not recognized any tax liabilities or any interest or penalties in income tax expense related to uncertain tax positions as of December 31, 2016, 2015, and 2014. Trust Department Property held by the Bank in a fiduciary or agency capacity for customers is not included in the accompanying consolidated balance sheets, since such items are not assets of the Company. Trust department income is recognized on the accrual basis. Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of short-term federal funds sold and securities sold or purchased under agreements to resell, interest earning deposits with banks, cash, and due from banks. Stock-Based Compensation The Company’s stock-based employee compensation plan is described in Note 12, Stock Compensation. In accordance with FASB ASC Topic 718, Compensation – Stock Compensation Treasury Stock The purchase of the Company’s common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost associated with such stock on a first-in-first-out basis. Reclassifications Certain prior year information has been reclassified to conform to the current year presentation. The following represents significant new accounting principles adopted in 2016: Consolidation Amendments to the Consolidation Analysis Intangible Assets Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]
Loans and Allowance for Loan Losses	(2) Loans and Allowance for Loan Losses Loans A summary of loans, by major class within the Company’s loan portfolio, at December 31, 2016 and 2015 is as follows: (in thousands) 2016 2015 Commercial, financial, and agricultural $ 182,881 $ 149,091 Real estate construction - residential 18,907 16,895 Real estate construction - commercial 55,653 33,943 Real estate mortgage - residential 259,900 256,086 Real estate mortgage - commercial 426,470 385,869 Installment and other consumer 30,218 23,196 Total loans $ 974,029 $ 865,080 The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, Branson and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Installment and other consumer loans consist primarily of the financing of vehicles. At December 31, 2016, loans with a carrying value of  $491.1 million, or $403.6 million fair value, were pledged to the Federal Home Loan Bank as collateral for borrowings and letters of credit. The following is a summary of loans to directors and executive officers or to entities in which such individuals had a beneficial interest of the Company, are summarized as follows: (in thousands) Balance at December 31, 2015 $ 3,376 New loans 64 Amounts collected (167 ) Balance at December 31, 2016 $ 3,273 Such loans were made in the normal course of business on substantially the same terms, including interest rates and collateral requirements, as those prevailing at the same time for comparable transactions with other persons, and did not involve more than the normal risk of collectability or present unfavorable features. Allowance for loan losses The following is a summary of the allowance for loan losses for the years ended December 31, 2016, 2015, and 2014: (in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Un- Total Balance at December 31, 2013 $ 2,374 $ 931 $ 631 $ 2,959 $ 6,523 $ 294 $ 7 $ 13,719 Additions: Provision for loan losses 371 (592 ) 326 (226 ) (107 ) 195 33 0 Deductions: Loans charged off 1,285 349 491 408 2,890 405 0 5,828 Less recoveries on loans (319 ) (181 ) 0 (202 ) (320 ) (186 ) 0 (1,208 ) Net loans charged off 966 168 491 206 2,570 219 0 4,620 Balance at December 31, 2014 $ 1,779 $ 171 $ 466 $ 2,527 $ 3,846 $ 270 $ 40 $ 9,099 Additions: Provision for loan losses 833 (434 ) 193 153 (713 ) 157 61 250 Deductions: Loans charged off 1,131 0 15 379 363 302 0 2,190 Less recoveries on loans (672 ) (322 ) 0 (138 ) (165 ) (148 ) 0 (1,445 ) Net loans charged off 459 (322 ) 15 241 198 154 0 745 Balance at December 31, 2015 $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Additions: Provision for loan losses 690 49 (732 ) 381 865 113 59 1,425 Deductions: Loans charged off 389 0 1 495 147 258 0 1,290 Less recoveries on loans (299 ) 0 (502 ) (60 ) (140 ) (146 ) 0 (1,147 ) Net loans charged off 90 0 (501 ) 435 7 112 0 143 Balance at December 31, 2016 $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 $ 274 $ 160 $ 9,886 Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. Loan charge-offs reduce the allowance for loan losses, and recoveries of loans previously charged off are added back to the allowance. If management determines that it is probable that all amounts due on a loan will not be collected under the original terms of the loan agreement, the loan is considered to be impaired. These loans are evaluated individually for impairment, and in conjunction with current economic conditions and loss experience, specific reserves are estimated as further discussed below. Loans not individually evaluated are aggregated by risk characteristics and reserves are recorded using a consistent methodology that considers historical loan loss experience by loan type, delinquencies, current economic conditions, loan risk ratings and industry concentration. The following table provides the balance in the allowance for loan losses at December 31, 2016 and 2015, and the related loan balance by impairment methodology. (in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Un- Total December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 469 $ 0 $ 7 $ 319 $ 277 $ 8 $ 0 $ 1,080 Collectively evaluated for impairment 2,284 108 406 2,066 3,516 266 160 8,806 Total $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 $ 274 $ 160 $ 9,886 Loans outstanding: Individually evaluated for impairment $ 1,617 $ 0 $ 49 $ 5,471 $ 1,918 $ 89 $ 0 $ 9,144 Collectively evaluated for impairment 181,264 18,907 55,604 254,429 424,552 30,129 0 964,885 Total $ 182,881 $ 18,907 $ 55,653 $ 259,900 $ 426,470 $ 30,218 $ 0 $ 974,029 December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 285 $ 0 $ 15 $ 955 $ 266 $ 19 $ 0 $ 1,540 Collectively evaluated for impairment 1,868 59 629 1,484 2,669 254 101 7,064 Total $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Loans outstanding: Individually evaluated for impairment $ 1,005 $ 0 $ 102 $ 5,936 $ 3,081 $ 144 $ 0 $ 10,268 Collectively evaluated for impairment 148,086 16,895 33,841 250,150 382,788 23,052 0 854,812 Total $ 149,091 $ 16,895 $ 33,943 $ 256,086 $ 385,869 $ 23,196 $ 0 $ 865,080 Impaired loans Loans evaluated under ASC 310-10-35 include loans which are individually evaluated for impairment. All other loans are collectively evaluated for impairment under ASC 450-20. Impaired loans individually evaluated for impairment totaled $9.1 million and $10.3 million at December 31, 2016 and 2015, respectively, and are comprised of loans on non-accrual status and loans which have been classified as troubled debt restructurings (TDRs). The net carrying value of impaired loans is based on the fair values of collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. At December 31, 2016 and 2015, $4.5 million and $6.4 million, respectively, of impaired loans were evaluated based on the fair value less estimated selling costs of the loan’s collateral. Once the impairment amount is calculated, a specific reserve allocation is recorded. At December 31, 2016, $1.1 million of the Company’s allowance for loan losses was allocated to impaired loans totaling $9.1 million compared to $1.5 million of the Company’s allowance for loan losses allocated to impaired loans totaling approximately $10.3 million at December 31, 2015. Management determined that $2.1 million, or 23%, of total impaired loans required no reserve allocation at December 31, 2016 compared to $4.5 million, or 44%, at December 31, 2015 primarily due to adequate collateral values, acceptable payment history and adequate cash flow ability. The categories of impaired loans at December 31, 2016 and 2015 are as follows: (in thousands) 2016 2015 Non-accrual loans $ 3,429 $ 4,418 Performing TDRs 5,715 5,850 Total impaired loans $ 9,144 $ 10,268 The following tables provide additional information about impaired loans at December 31, 2016 and 2015, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided. (in thousands) Recorded Unpaid Specific December 31, 2016 With no related allowance recorded: Commercial, financial and agricultural $ 564 $ 706 $ 0 Real estate - residential 1,550 1,557 0 Total $ 2,114 $ 2,263 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,053 $ 1,078 $ 469 Real estate - construction commercial 49 56 7 Real estate - residential 3,921 3,990 319 Real estate - commercial 1,918 1,988 277 Consumer 89 116 8 Total $ 7,030 $ 7,228 $ 1,080 Total impaired loans $ 9,144 $ 9,491 $ 1,080 (in thousands) Recorded Unpaid Specific December 31, 2015 With no related allowance recorded: Commercial, financial and agricultural $ 448 $ 450 $ 0 Real estate - residential 1,645 1,712 0 Real estate - commercial 2,446 2,572 0 Total $ 4,539 $ 4,734 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 557 $ 572 $ 285 Real estate - construction commercial 102 115 15 Real estate - residential 4,291 4,320 955 Real estate - commercial 635 884 266 Consumer 144 182 19 Total $ 5,729 $ 6,073 $ 1,540 Total impaired loans $ 10,268 $ 10,807 $ 1,540 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2016 and 2015: 2016 2015 (in thousands) Average Interest Average Interest With no related allowance recorded: Commercial, financial and agricultural $ 669 $ 13 $ 2,949 $ 39 Real estate - construction residential 0 0 536 0 Real estate - construction commercial 0 0 1,105 0 Real estate - residential 1,713 52 2,331 37 Real estate - commercial 353 0 5,169 119 Consumer 0 0 7 1 Total $ 2,735 $ 65 $ 12,097 $ 196 With an allowance recorded: Commercial, financial and agricultural $ 899 $ 23 $ 1,356 $ 22 Real estate - construction commercial 51 0 52 0 Real estate - residential 3,553 114 4,625 110 Real estate - commercial 1,842 83 1,161 0 Consumer 109 0 183 0 Total $ 6,454 $ 220 $ 7,377 $ 132 Total impaired loans $ 9,189 $ 285 $ 19,474 $ 328 The recorded investment varies from the unpaid principal balance primarily due to partial charge-offs taken resulting from current appraisals received. The amount recognized as interest income on impaired loans continuing to accrue interest, primarily related to troubled debt restructurings, was $285,000 and $328,000, for the years ended December 31, 2016 and 2015, respectively. The average recorded investment in impaired loans is calculated on a monthly basis during the years reported. Delinquent and Non-Accrual Loans The delinquency status of loans is determined based on the contractual terms of the notes. Borrowers are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally six months. The following table provides aging information for the Company’s past due and non-accrual loans at December 31, 2016 and 2015. (in thousands) Current or 30-89 Days 90 Days Non-Accrual Total December 31, 2016 Commercial, Financial, and Agricultural $ 181,609 $ 290 $ 0 $ 982 $ 182,881 Real Estate Construction - Residential 18,681 226 0 0 18,907 Real Estate Construction - Commercial 55,603 0 0 50 55,653 Real Estate Mortgage - Residential 254,758 3,200 54 1,888 259,900 Real Estate Mortgage - Commercial 425,260 790 0 420 426,470 Installment and Other Consumer 29,920 198 11 89 30,218 Total $ 965,831 $ 4,704 $ 65 $ 3,429 $ 974,029 December 31, 2015 Commercial, Financial, and Agricultural $ 148,597 $ 185 $ 1 $ 308 $ 149,091 Real Estate Construction - Residential 16,895 0 0 0 16,895 Real Estate Construction - Commercial 33,776 65 0 102 33,943 Real Estate Mortgage - Residential 251,253 2,511 0 2,322 256,086 Real Estate Mortgage - Commercial 383,684 643 0 1,542 385,869 Installment and Other Consumer 22,840 207 5 144 23,196 Total $ 857,045 $ 3,611 $ 6 $ 4,418 $ 865,080 Credit Quality The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment. Loans are placed on watch substandard troubled debt restructuring TDR) non-accrual The following table presents the risk categories by class at December 31, 2016 and 2015. (in thousands) Commercial, Real Estate Real Estate Real Real Estate Installment Total At December 31, 2016 Watch $ 10,295 $ 665 $ 1,113 $ 16,577 $ 44,611 $ 0 $ 73,261 Substandard 798 640 0 2,159 426 24 4,047 Performing TDRs 635 0 0 3,582 1,498 0 5,715 Non-accrual 982 0 50 1,888 420 89 3,429 Total $ 12,710 $ 1,305 $ 1,163 $ 24,206 $ 46,955 $ 113 $ 86,452 At December 31, 2015 Watch $ 8,663 $ 1,267 $ 1,296 $ 22,191 $ 24,303 $ 186 $ 57,906 Substandard 421 0 37 3,737 1,485 36 5,716 Performing TDRs 697 0 0 3,615 1,538 0 5,850 Non-accrual 308 0 102 2,322 1,542 144 4,418 Total $ 10,089 $ 1,267 $ 1,435 $ 31,865 $ 28,868 $ 366 $ 73,890 Troubled Debt Restructurings At December 31, 2016, loans classified as TDRs totaled $6.3 million, of which $619,000 were classified as nonperforming TDRs and included in non-accrual loans and $5.7 million were classified as performing TDRs. At December 31, 2015, TDRs totaled $6.4 million, of which $527,000 were classified as nonperforming TDRs included in non-accrual loans and $5.9 million were classified as performing TDRs. Both performing and nonperforming TDRs are considered impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. Accordingly, specific reserves of  $410,000 and $1.0 million related to TDRs were allocated to the allowance for loan losses at December 31, 2016 and 2015, respectively. The following table summarizes loans that were modified as TDRs during the years ended December 31, 2016 and 2015. 2016 2015 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 0 $ 0 $ 0 2 $ 250 $ 229 Real estate mortgage - residential 7 536 536 1 519 374 Real estate mortgage - commercial 0 0 0 4 1,273 1,249 Total 7 $ 536 $ 536 7 $ 2,042 $ 1,852 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off, or foreclosed upon during the period ended are not reported. The Company’s portfolio of loans classified as TDRs include concessions for the borrower due to deteriorated financial condition such as interest rates below the current market rate, deferring principal payments, and extending maturity dates. During the year ended December 31, 2016, seven loans meeting the TDR criteria were modified compared to seven loans during the year ended December 31, 2015. Upon default of a TDR, which is considered to be 90 days or more past due under the modified terms, impairment is measured based on the fair value of the underlying collateral less applicable selling costs. The impairment amount is either charged off as a reduction to the allowance for loan losses, provided for as a specific reserve within the allowance for loan losses, or in the process of foreclosure. There were three TDRs that defaulted during the year ended December 31, 2016 within twelve months of its modification date compared to no loans during the year ended December 31, 2015. Two of the loans have been charged off and one is in the process of an insurance settlement.

Real Estate and Other Assets Ac

Real Estate and Other Assets Acquired in Settlement of Loans	12 Months Ended
	Dec. 31, 2016
Other Real Estate [Abstract]
Real Estate and Other Assets Acquired in Settlement of Loans	(3) Real Estate and Other Assets Acquired in Settlement of Loans (in thousands) 2016 2015 Commercial $ 809 $ 1,445 Real estate construction - commercial 12,380 12,380 Real estate mortgage - residential 647 477 Real estate mortgage - commercial 3,439 4,923 Repossessed assets 16 0 Total $ 17,291 $ 19,225 Less valuation allowance for other real estate owned (3,129 ) (3,233 ) Total other real estate owned and foreclosed assets $ 14,162 $ 15,992 Changes in the net carrying amount of other real estate owned and repossessed assets for the years ended December 31, 2014 2015, and 2016, respectively, were as follows: Balance at December 31, 2014 $ 15,140 Additions 5,804 Proceeds from sales (1,836 ) Charge-offs against the valuation allowance for other real estate owned, net (39 ) Net gain on sales 156 Balance at December 31, 2015 $ 19,225 Additions 2,233 Proceeds from sales (4,057 ) Charge-offs against the valuation allowance for other real estate owned, net (317 ) Net gain on sales 207 Total other real estate owned and repossessed assets $ 17,291 Less valuation allowance for other real estate owned (3,129 ) Balance at December 31, 2016 $ 14,162 At December 31, 2016, $162,000 of consumer mortgage loans secured by residential real estate properties were in the process of foreclosure compared to $390,000 at December 31, 2015. Activity in the valuation allowance for other real estate owned in settlement of loans for the years ended December 31, 2016, 2015 and 2014, respectively, is summarized as follows: (in thousands) 2016 2015 2014 Balance, beginning of year $ 3,233 $ 3,255 $ 4,675 Provision for other real estate owned 213 17 585 Charge-offs (317 ) (39 ) (2,005 ) Balance, end of year $ 3,129 $ 3,233 $ 3,255

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Investment Securities	(4) Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of debt securities classified as available-for-sale at December 31, 2016 and 2015 are shown below: (in thousands) Total Gross Unrealized Fair Value Gains Losses December 31, 2016 U.S. government and federal agency obligations $ 13,667 $ 0 $ (303 ) $ 13,364 Government sponsored enterprises 32,786 2 (329 ) 32,459 Obligations of states and political subdivisions 42,666 123 (757 ) 42,032 Mortgage-backed securities: Residential - government agencies 127,527 124 (1,995 ) 125,656 Commercial - government agencies 989 12 0 1,001 Total mortgage-backed securities 128,516 136 (1,995 ) 126,657 Total available-for-sale securities $ 217,635 $ 261 $ (3,384 ) $ 214,512 December 31, 2015 Government sponsored enterprises $ 73,605 $ 127 $ (235 ) $ 73,497 Obligations of states and political subdivisions 32,224 493 (11 ) 32,706 Mortgage-backed securities: Residential - government agencies 129,193 432 (1,768 ) 127,857 Commercial - government agencies 986 8 0 994 Total mortgage-backed securities 130,179 440 (1,768 ) 128,851 Total available-for-sale securities $ 236,008 $ 1,060 $ (2,014 ) $ 235,054 All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, small business administration guaranteed loan certificates (SBA), residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises. Other Investments and securities primarily consist of Federal Home Loan Bank stock, subordinated debt equity securities, and the Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of  $9.8 million and $8.0 million as of December 31, 2016 and 2015, respectively. Debt securities with carrying values aggregating approximately $167.6 million and $182.7 million at December 31, 2016 and December 31, 2015, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities classified as availabe-for-sale at December 31, 2016, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties. (in thousands) Amortized Fair Due in one year or less $ 4,725 $ 4,726 Due after one year through five years 48,405 47,973 Due after five years through ten years 29,363 28,626 Due after ten years 6,626 6,530 Total 89,119 87,855 Mortgage-backed securities 128,516 126,657 Total available for sale securities $ 217,635 $ 214,512 Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2016 and December 31, 2015 were as follows: Less than 12 months 12 months or more Total Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2016 U.S. government and federal agency obligations $    13,365 $    (303 ) $    0 $    0 $    13,365 $    (303 ) Government sponsored enterprises 29,432 (329 ) 0 0 29,432 (329 ) Obligations of states and political subdivisions 32,318 (757 ) 0 0 32,318 (757 ) Mortgage-backed securities: Residential - government agencies 109,772 (1,848 ) 3,742 (147 ) 113,514 (1,995 ) Total $ 184,887 $ (3,237 ) $ 3,742 $ (147 ) $ 188,629 $ (3,384 ) (in thousands) At December 31, 2015 Government sponsored enterprises $ 43,539 $ (222 ) $ 1,002 $ (13 ) $ 44,541 $ (235 ) Obligations of states and political subdivisions 2,571 (6 ) 718 (5 ) 3,289 (11 ) Mortgage-backed securities: Residential - government agencies 56,095 (620 ) 43,576 (1,148 ) 99,671 (1,768 ) Total $ 102,205 $ (848 ) $ 45,296 $ (1,166 ) $ 147,501 $ (2,014 ) The total available for sale portfolio consisted of approximately 298 securities at December 31, 2016. The portfolio included 209 securities having an aggregate fair value of  $188.6 million that were in a loss position at December 31, 2016. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer had a fair value of  $3.7 million at December 31, 2016. The $3.4 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2016 was caused by interest rate fluctuations. The total available for sale portfolio consisted of approximately 316 securities at December 31, 2015. The portfolio included 111 securities having an aggregate fair value of  $147.5 million that were in a loss position at December 31, 2015. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer had a fair value of  $45.3 million at December 31, 2015. The $2.0 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2015 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at December 31, 2016 and 2015, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date, or re-pricing date or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities. The table presents the components of investment securities gains and losses, which have been recognized in earnings: (in thousands) 2016 2015 2014 Gains realized on sales $ 623 $ 8 $ 86 Losses realized on sales (21 ) 0 (66 ) Other-than-temporary impairment recognized 0 0 0 Investment securities gains $ 602 $ 8 $ 20

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2016
Premises and Equipment
Premises and Equipment	(5) Premises and Equipment A summary of premises and equipment at December 31, 2016 and 2015 is as follows: (in thousands) 2016 2015 Land and land improvements $ 9,952 $ 10,165 Buildings and improvements 35,657 35,588 Furniture and equipment 13,473 12,906 Construction in progress 271 94 Total 59,353 58,753 Less accumulated depreciation 23,831 22,364 Premises and equipment, net $ 35,522 $ 36,389 Depreciation expense for the years ended December 31, 2016, 2015, and 2014 was as follows: (in thousands) 2016 2015 2014 Depreciation expense $ 1,782 $ 1,810 $ 1,758

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2016
Intangible Assets
Intangible Assets	(6) Intangible Assets Mortgage Servicing Rights At December 31, 2016 and 2015, respectively, the Company serviced mortgage loans for others totaling $294.4 million and $312.1 million, respectively. Mortgage loan servicing fees, reported as non-interest income, earned on loans sold were $854,000, $873,000, and $895,000, for the years ended December 31, 2016, 2015, and 2014, respectively. The table below presents changes in mortgage servicing rights (MSRs) for the years ended December 31, 2016, 2015, and 2014. (in thousands) 2016 2015 2014 Balance at beginning of year $ 2,847 $ 2,762 $ 3,036 Originated mortgage servicing rights 266 386 302 Changes in fair value: Due to change in model inputs and assumptions (1) 108 372 66 Other changes in fair value (2) (637 ) (673 ) (642 ) Balance at end of year $ 2,584 $ 2,847 $ 2,762 (1) The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value reflect changes due to customer payments and passage of time. The following key data and assumptions were used in estimating the fair value of the Company’s mortgage servicing rights as of the years ended December 31, 2016 and 2015: 2016 2015 Weighted-Average Constant Prepayment Rate 10.68 % 9.58 % Weighted-Average Note Rate 3.85 % 3.92 % Weighted-Average Discount Rate 9.69 % 9.16 % Weighted-Average Expected Life (in years) 5.60 5.90

Deposits

Deposits	12 Months Ended
	Dec. 31, 2016
Deposits
Deposits	(7) Deposits The scheduled maturities of total time deposits as of the years ended December 31, 2016 and 2015 were as follows: (in thousands) 2016 2015 Due within: One year $ 217,970 $ 201,418 Two years 50,330 56,026 Three years 24,807 29,030 Four years 6,363 6,022 Five years 6,490 5,586 Thereafter 0 0 Total $ 305,960 $ 298,082 At December 31, 2016 and 2015, the Company had certificates and other time deposits in denominations of  $100,000 or more with maturities as follows: (in thousands) 2016 2015 Due within: Three months or less $ 50,270 $ 39,122 Over three months through six months 34,500 30,704 Over six months through twelve months 40,249 30,432 Over twelve months 27,237 31,986 Total $ 152,256 $ 132,244 Total time deposits of more than $250,000 totaled $72.2 million and $56.4 million at December 31, 2016 and 2015, respectively. The Federal Reserve Bank required the Bank to maintain cash or balances of  $1.6 million at December 31, 2016 and 2015 to satisfy reserve requirements. Average compensating balances held at correspondent banks were $570,000 and $865,000 at December 31, 2016 and 2015, respectively. The Bank maintains such compensating balances with correspondent banks to offset charges for services rendered by those banks.

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2016
Borrowings
Borrowings	(8) Borrowings Federal Funds Purchased and Securities Sold under Agreements to Repurchase (Repurchase Agreements) Information relating to federal funds purchased and repurchase agreements is as follows: (in thousands) Year End Average Average Maximum Balance at 2016 Federal funds purchased 0.95 % 0.65 % $ 346 $ 992 $ 992 Short-term repurchase agreements 0.20 0.17 36,193 56,710 30,023 Total $ 36,539 $ 57,702 $ 31,015 2015 Federal funds purchased 0.70 % 0.41 % $ 659 $ 937 $ 0 Short-term repurchase agreements 0.10 0.17 30,266 58,464 56,834 Total $ 30,925 $ 59,401 $ 56,834 The securities underlying the agreements to repurchase are under the control of the Bank. All securities sold under agreements to repurchase are secured by a portion of the Bank’s investment portfolio. Under agreements with unaffiliated banks, the Bank may borrow federal funds up to $39.0 million on an unsecured basis and $18.0 million on a secured basis at December 31, 2016. Subordinated Notes and Other Borrowings Other borrowings of the Company consisted of the following: (in thousands) 2016 2015 Borrower Maturity Year End Year End Year End Year End FHLB advances The Bank 2016 $ 0 na % $ 8,000 0.67 % 2017 40,900 0.90 % 5,000 1.07 % 2018 27,000 1.80 % 22,000 1.93 % 2019 10,000 1.50 % 4,000 1.79 % 2020 11,000 1.95 % 11,000 1.95 % 2021 4,000 1.71 % Other borrowings 2017 492 1.05 % 0 na % Total Bank $ 93,392 $ 50,000 Subordinated notes The Company 2034 $ 25,774 3.69 % $ 25,774 3.23 % 2035 23,712 2.82 % 23,712 2.36 % Total Company $ 49,486 $ 49,486 The Bank is a member of the Federal Home Loan Bank of Des Moines (FHLB) and has access to term financing from the FHLB. These borrowings are secured under a blanket agreement which assigns all investment in FHLB stock, as well as qualifying first mortgage loans as collateral to secure amounts borrowed by the Bank. The outstanding balance of  $92.9 million includes $10.0 million, which the FHLB may call for early payment within the next year. Based upon the collateral pledged to the FHLB at December 31, 2016, the Bank could borrow up to an additional $221.7 million under the agreement. On March 17, 2005, Exchange Statutory Trust II, a business trust and subsidiary of the Company, issued $23.0 million of 30-year floating rate Trust Preferred Securities (TPS) to a TPS Pool. The floating rate is equal to a three-month LIBOR rate plus 1.83% and reprices quarterly (2.82% at December 31, 2016). The TPS can be prepaid without penalty at any time after five years from the issuance date. The TPS represent preferred interests in the trust. The Company invested approximately $712,000 in common interests in the trust and the purchaser in the private placement purchased $23.0 million in preferred interests. The proceeds were used by the trust to purchase from the Company its 30-year deeply subordinated debentures whose terms mirror those stated above for the TPS. The debentures are guaranteed by the Company pursuant to a subordinated guarantee. Distributions on the TPS are payable quarterly on March 17, June 17, September 17, and December 17 of each year that the TPS are outstanding. The trustee for the TPS holders is U.S. Bank, N.A. The trustee does not have the power to take enforcement action in the event of a default under the TPS for five years from the date of default. In the event of default, however, the Company would be precluded from paying dividends until the default is cured. On March 17, 2004, Exchange Statutory Trust I, a business trust and subsidiary of the Company issued $25.0 million of floating rate TPS to a TPS Pool. The floating rate is equal to the three-month LIBOR rate plus 2.70% and reprices quarterly (3.69% at December 31, 2016). The TPS are fully, irrevocably, and unconditionally guaranteed on a subordinated basis by the Company. The proceeds of the TPS were invested in junior subordinated debentures of the Company. Distributions on the TPS are payable quarterly on March 17, June 17, September 17, and December 17 of each year that the TPS are outstanding. The TPS mature on March 17, 2034. That maturity date may be shortened if certain conditions are met. The Exchange Statutory Trusts are not consolidated in the Company’s financial statements. Accordingly, the Company does not report the securities issued by the Exchange Statutory Trusts as liabilities, and instead reports the subordinated notes issued by the Company and held by the Exchange Statutory Trusts as liabilities. The amount of the subordinated notes as of December 31, 2016 and 2015 was $49.5 million, respectively. The Company has recorded the investments in the common securities issued by the Exchange Statutory Trusts aggregating $1.5 million, and the corresponding obligations under the subordinated notes, as well as the interest income and interest expense on such investments and obligations in its consolidated financial statements.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	(9) Income Taxes The composition of income tax expense for the years ended December 31, 2016, 2015, and 2014 was as follows: (in thousands) 2016 2015 2014 Current: Federal $ 3,578 $ 3,619 $ 1,105 State 489 496 137 Total current 4,067 4,115 1,242 Deferred: Federal (267 ) 391 2,353 State (50 ) 74 447 Total deferred (317 ) 465 2,800 Total income tax expense $ 3,750 $ 4,580 $ 4,042 Applicable income tax expense for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2016, 2015, and 2014 are as follows: (in thousands) 2016 2015 2014 Amount % Amount % Amount % Income before provision for income tax expense $ 11,032 $ 13,179 $ 11,696 Tax at statutory federal income tax rate $ 3,751 34.00 % $ 4,481 34.00 % $ 3,977 34.00 % Tax-exempt income (314 ) (2.85 ) (369 ) (2.80 ) (348 ) (2.98 ) State income tax, net of federal tax benefit 290 2.63 376 2.85 385 3.30 Other, net 23 0.21 92 0.70 28 0.24 Provision for income tax expense $ 3,750 33.99 % $ 4,580 34.75 % $ 4,042 34.56 % The components of deferred tax assets and deferred tax liabilities at December 31, 2016 and 2015 are as follows: (in thousands) 2016 2015 Deferred tax assets: Allowance for loan losses $ 3,756 $ 3,269 Impairment of other real estate owned 1,192 1,226 Goodwill 1,088 1,437 Available-for-sale securities 1,187 363 Nonaccrual loan interest 469 640 Core deposit intangible 422 556 Pension 1,415 1,242 Deferred taxes on pension 1,143 874 Deferred compensation 148 138 Other 402 342 Total deferred tax assets $ 11,222 $ 10,087 Deferred tax liabilities: Premises and equipment $ 765 $ 938 Mortgage servicing rights 968 1,064 Assets held for sale 50 49 Other 6 13 Total deferred tax liabilities 1,789 2,064 Net deferred tax assets $ 9,433 $ 8,023 The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income available in carryback years, and tax planning strategies in making this assessment. With the exception of certain capital losses generated during 2013 and 2014, it is management’s opinion that the Company will more likely than not realize the benefits of these temporary differences as of December 31, 2016 and, therefore, only established a valuation reserve against the Company’s capital loss carry forward. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible. As indicated above, the Company generated approximately $219,000 of capital losses during 2013 and 2014 as a result of disposing of certain limited partnership interests. The capital losses will expire between 2018 and 2019, and it is management’s opinion that the Company will not more likely than not generate the capital gain income necessary to utilize the capital loss carry forwards before the capital losses expire. As such, the Company has established an $83,000 valuation reserve against its capital loss carry forward deferred tax asset. The Company follows ASC Topic 740, Income Taxes, .

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity	(10) Stockholders’ Equity Accumulated Other Comprehensive (Loss) Income The following details the change in the components of the Company’s accumulated other comprehensive (loss) income for the years ended December 31, as indicated. (in thousands) Unrealized Unrecognized Accumulated Balance, December 31, 2014 $ 214 $  (1,442 ) $  (1,228 ) Other comprehensive (loss) income, before reclassifications (1,291 ) 144 (1,147 ) Amounts reclassified from accumulated other comprehensive (loss) (8 ) 5 (3 ) Current period other comprehensive (loss) income, before tax (1,299 ) 149 (1,150 ) Deferred tax adjustment 0 (77 ) (77 ) Income tax benefit (expense) 494 (57 ) 437 Current period other comprehensive (loss) income, net of tax (805 ) 15 (790 ) Balance, December 31, 2015 $ (591 ) $ (1,427 ) $ (2,018 ) Other comprehensive (loss) income, before reclassifications (1,566 ) 79 (1,487 ) Amounts reclassified from accumulated other comprehensive (loss) (602 ) (786 ) (1,388 ) Current period other comprehensive loss, before tax (2,168 ) (707 ) (2,875 ) Income tax benefit 823 269 1,092 Current period other comprehensive loss, net of tax (1,345 ) (438 ) (1,783 ) Balance, December 31, 2016 $ (1,936 ) $ (1,865 ) $ (3,801 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive (loss) income are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive income are included in the computation of net periodic pension cost. See Note 11.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	(11) Employee Benefit Plans Employee benefits (in thousands) 2016 2015 2014 Payroll taxes $ 1,122 $ 1,102 $ 1,081 Medical plans 1,881 1,928 1,974 401(k) match 346 325 310 Pension plan 1,227 1,391 960 Profit-sharing 479 563 201 Other 172 164 122 Total employee benefits $ 5,227 $ 5,473 $ 4,648 The Company’s profit-sharing plan includes a matching 401(k) portion, in which the Company matches the first 3% of eligible employee contributions. The Company made annual contributions in an amount up to 6% of income before income taxes and before contributions to the profit-sharing and pension plans for all participants, limited to the maximum amount deductible for federal income tax purposes, for each of the periods shown. In addition, employees were able to make additional tax-deferred contributions. Pension The Company provides a noncontributory defined benefit pension plan for all full-time employees. An employer is required to recognize the funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to provide for current service and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. The Company made $772,000 of contributions to the defined benefit plan for the current plan year. There is an $842,000 minimum required contribution for the 2017 plan year, and the Company has determined it will make a $1.2 million contribution by September 2017. Obligations and Funded Status at December 31, (in thousands) 2016 2015 Change in projected benefit obligation: Balance, January 1 $ 20,601 $ 19,977 Service cost 1,179 1,325 Interest cost 956 838 Actuarial (loss) gain 961 (1,084 ) Benefits paid (464 ) (455 ) Balance, December 31 $ 23,233 $ 20,601 Change in plan assets: Fair value, January 1 $ 15,031 $ 14,933 Actual return on plan assets 1,251 (75 ) Employer contribution 772 716 Expenses paid (88 ) (88 ) Benefits paid (464 ) (455 ) Fair value, December 31 $ 16,502 $ 15,031 Funded status at end of year $ (6,732 ) $ (5,570 ) Accumulated benefit obligation $ 18,586 $ 16,550 Components of Net Pension Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income The following items are components of net pension cost for the years ended December 31, as indicated: (in thousands) 2016 2015 2014 Service cost - benefits earned during the year $ 1,179 $ 1,325 $ 981 Interest costs on projected benefit obligations 956 838 732 Expected return on plan assets (1,057 ) (957 ) (872 ) Expected administrative expenses 70 40 40 Amortization of prior service cost 79 79 79 Amortization of unrecognized net loss 0 66 0 Net periodic pension expense $ 1,227 $ 1,391 $ 960 Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss at December 31, 2016 and 2015 are shown below, including amounts recognized in other comprehensive income during the periods. All amounts are shown on a pre-tax basis. (in thousands) 2016 2015 Prior service costs $ (285 ) $ (364 ) Net accumulated actuarial net loss (2,723 ) (1,937 ) Accumulated other comprehensive loss (3,008 ) (2,301 ) Net periodic benefit cost in excess of cumulative employer contributions (3,724 ) (3,269 ) Net amount recognized at December 31, balance sheet $ (6,732 ) $ (5,570 ) Net gain (loss) arising during period $ (786 ) 5 Prior service cost amortization 79 79 Amortization of net actuarial loss 0 65 Total recognized in other comprehensive income (loss) $ (707 ) $ 149 Total recognized in net periodic pension cost and other comprehensive income $ 1,934 $ 1,242 The estimated prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic cost in 2016 is $79,000. During 2016, there is no estimated amount of actuarial loss subject to amortization into net periodic pension cost. Assumptions utilized to determine benefit obligations as of December 31, 2016, 2015 and 2014 and to determine pension expense for the years then ended are as follows: 2016 2015 2014 Determination of benefit obligation at year end: Discount rate 4.40 % 4.70 % 4.25 % Annual rate of compensation increase 4.00 % 3.78 % 3.78 % Determination of pension expense for year ended: Discount rate for the service cost 4.70 % 4.25 % 5.00 % Annual rate of compensation increase 3.78 % 3.78 % 3.73 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 % The assumed overall expected long-term rate of return on pension plan assets used in calculating 2016 pension expense was 7.0%. Determination of the plan’s rate of return is based upon historical returns for equities and fixed income indexes. During the past five years, the Company’s plan assets have experienced the following annual returns: 8.2% in 2016, -.0.4% in 2015, 8.3% in 2014, 19.1% in 2013, and 11.4% in 2012. The rate used in plan calculations may be adjusted by management for current trends in the economic environment. With a traditional investment mix of over half of the plan’s investments in equities, the actual return for any one plan year may fluctuate significantly with changes in the stock market. Due to a decrease in the discount rate and the expected return on asset assumption used in the actuarial calculation of plan income, the Company expects to incur $1.4 million of expense in 2017 compared to $1.2 million 2016. Plan Assets The investment policy of the pension plan is designed for growth in value while minimizing risk to the overall portfolio. The Company diversifies the assets through investments in domestic fixed income securities and domestic and international equity securities. The assets are readily marketable and can be sold to fund benefit payment obligations as they become payable. The Company’s long-term investment target mix for the plan is 70% equity securities, 25% fixed income, and 5% money market funds. The Company regularly reviews its policies on the investment mix and may make changes depending on economic conditions and perceived investment mix. The fair value of the Company’s pension plan assets at December 31, 2016 and 2015 by asset category was as follows: Fair Value Measurements (in thousands) Fair Value Quoted Prices Other Significant December 31, 2016 Cash equivalents $ 1,362 $ 1,362 $ 0 $ 0 U.S gov’t agency obligations 2,376 0 2,376 0 Mutual funds 12,764 12,764 0 0 Total $ 16,502 $ 14,126 $ 2,376 $ 0 December 31, 2015 Cash equivalents $ 1,663 $ 1,663 $ 0 $ 0 U.S gov’t agency obligations 1,802 0 1,802 0 Mutual funds 11,566 11,566 0 0 Total $ 15,031 $ 13,229 $ 1,802 $ 0 The following future benefit payments are expected to be paid: Year Pension (in thousands) 2017 $ 630 2018 677 2019 802 2020 873 2021 1,036 2022 to 2026 5,970

Stock Compensation

Stock Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Compensation	(12) Stock Compensation The Company’s stock option plan provides for the grant of options to purchase up to 553,361 shares of the Company’s common stock to officers and other key employees of the Company and its subsidiaries. The following table summarizes the Company’s stock option activity: Number of shares Weighted average Weighted average Aggregate 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Outstanding, beginning of year 65,270 104,400 136,653 $  20.68 $  20.73 $  21.46 Granted 0 0 0 0.00 0.00 0.00 Exercised 0 0 0 0.00 0.00 0.00 Forfeited or expired (20,812 ) (39,130 ) (32,253 ) 21.89 20.82 23.81 Outstanding, end of year 44,458 65,270 104,400 $ 20.11 $ 20.68 $ 20.73 0.99 1.41 1.93 $ 49,828 $ 0.00 $ 0.00 Exercisable, end of year 43,189 57,487 92,336 $ 20.25 $ 21.39 $ 21.11 0.97 1.24 1.75 $ 46,859 $ 0.00 $ 0.00 Options have been adjusted to reflect a 4% stock dividend paid on July 1, 2016. Total stock-based compensation expense for the years ended December 31, 2016, 2015, and 2014 was $17,000, $10,000, and $20,000, respectively. As of December 31, 2016, the total unrecognized compensation expense related to non-vested stock awards was $20,000 and the related weighted average period over which it is expected to be recognized is approximately 0.38 years. No stock options were granted during the years presented above.

Earnings per Share

Earnings per Share	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings per Share	(13) Earnings per Share Stock Dividend Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential common shares that were outstanding during the year. Presented below is a summary of the components used to calculate basic and diluted earnings per common share, which have been restated for all stock dividends. 2016 2015 2014 Basic earnings per common share: Net income available to shareholders $ 7,282 $ 8,599 $ 7,654 Basic earnings per share $ 1.29 $ 1.52 $ 1.35 Diluted earnings per common share: Net income available to shareholders $ 7,282 $ 8,599 $ 7,654 Average shares outstanding 5,639,744 5,662,013 5,662,081 Effect of dilutive stock options 0 0 0 Average shares outstanding including dilutive stock options 5,639,744 5,662,013 5,662,081 Diluted earnings per share $ 1.29 $ 1.52 $ 1.35 Under the treasury stock method, outstanding stock options are dilutive when the average market price of the Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when the Company has a loss from continuing operations available to common shareholders. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period. The following options to purchase shares during the years ended December 31, 2016, 2015 and 2014 were not included in the respective computations of diluted earnings per share because the exercise price of the option, when combined with the effect of the unamortized compensation expense, was greater than the average market price of the common shares and were considered anti-dilutive. 2016 2015 2014 Anti-dilutive shares - option shares 44,458 65,270 104,400 Repurchase Program The table below shows activity in the outstanding shares of the Company’s common stock during the past three years. Shares in the table below are presented on a historical basis and have not been restated for the annual 4% stock dividends. Number of shares 2016 2015 2014 Outstanding, beginning of year 5,441,190 5,233,986 5,032,679 Issuance of stock: 4% stock dividend 217,155 209,359 201,307 Purchase of treasury stock (41,738 ) (2,155 ) 0 Outstanding, end of year 5,616,607 5,441,190 5,233,986 Except as noted in the above table, all share and per share amounts in this note have been restated for the 4% common stock dividend distributed in 2016.

Capital Requirements

Capital Requirements	12 Months Ended
	Dec. 31, 2016
Capital Requirements
Capital Requirements	(14) Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. In July 2013, the federal banking agencies issued final rules to implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act. The phase-in period for the Company began on January 1, 2015. The Federal Reserve System’s (FRB) capital adequacy guidelines require that bank holding companies maintain a Common Equity Tier 1 risk-based capital ratio equal to at least 4.5% of its risk-weighted assets, a Tier 1 risk-based capital ratio equal to at least 6% of its risk-weighted assets and a total risk-based capital ratio equal to at least 8% of its risk-weighted assets. In addition, bank holding companies generally are required to maintain a Tier 1 leverage ratio of at least 4%. In addition, the final rules establish a common equity tier 1 capital conservation buffer of 2.5% of risk-weighted assets applicable to all banking organizations. Institutions that do not maintain the required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases and on the payment of discretionary bonuses to senior executive management. The capital conservation buffer requirement will be phased in over four years beginning in 2016. On January 1, 2016, the first phase of the requirement went into effect at 0.625% of risk-weighted assets, and the requirement will increase each subsequent year by an additional 0.625 percentage points, to reach its final level of 2.5% of risk weighted assets on January 1, 2019. Once fully phase in , the capital conservation buffer requirement effectively raises the minimum required risk-based capital ratios to 7% Common Equity Tier 1 Capital, 8.5% Tier 1 Capital and 10.5% Total Capital on a fully phased-in basis. Under the Basel III requirements, at December 31, 2016 and December 31, 2015, the Company met all capital adequacy requirements and had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as shown in the following table as of periods indicated: Actual Required for Capital Well-Capitalized Under (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets): Company $  152,864 13.72 % $  89,118 8.00 % $  N.A. N.A. % Bank 148,304 13.36 88,804 8.00 111,005 10.00 Tier I Capital (to risk-weighted assets): Company $ 125,779 11.29 % $ 66,839 6.00 % $ N.A. N.A. % Bank 138,258 12.46 66,603 6.00 88,804 8.00 Common Equity Tier I Capital (to risk-weighted assets) Company $ 94,818 8.51 % $ 50,129 4.50 % $ N.A. N.A. % Bank 138,258 12.46 49,952 4.50 72,153 6.50 Tier I leverage ratio: Company $ 125,779 9.87 % $ 50,998 4.00 % $ N.A. N.A. % Bank 138,258 10.88 50,810 4.00 63,513 5.00 (in thousands) December 31, 2015 Total Capital (to risk-weighted assets): Company $ 146,068 14.78 % $ 79,066 8.00 % $ N.A. N.A. % Bank 137,572 13.98 78,718 8.00 98,398 10.00 Tier I Capital (to risk-weighted assets): Company $ 118,875 12.03 % $ 59,299 6.00 % $ N.A. N.A. % Bank 128,808 13.09 59,039 6.00 78,718 8.00 Common Equity Tier I Capital (to risk-weighted assets) Company $ 89,304 9.04 % $ 44,475 4.50 % $ N.A. N.A. % Bank 128,808 13.09 44,279 4.50 63,959 6.50 Tier I leverage ratio: Company $ 118,875 9.84 % $ 48,314 4.00 % $ N.A. N.A. % Bank 128,808 10.73 48,025 4.00 60,031 5.00

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	(15) Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain financial and nonfinancial assets and liabilities. The FASB ASC Topic 820, Fair Value Measurement, The fair value hierarchy is as follows: Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable inputs for the asset or liability and significant to the fair value. These may be internally developed using the Company’s best information and assumptions that a market participant would consider. ASC Topic 820 also provides guidance on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and on identifying circumstances when a transaction may not be considered orderly. The Company is required to disclose assets and liabilities measured at fair value on a recurring basis separate from those measured at fair value on a nonrecurring basis. Nonfinancial assets measured at fair value on a nonrecurring basis would include foreclosed real estate, long-lived assets, and core deposit intangible assets, which are reviewed when circumstances or other events indicate that impairment may have occurred. Valuation methods for instruments measured at fair value on a recurring basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Available-for-sale securities The fair value measurements of the Company’s investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source by management each quarter for reasonableness. Securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. Mortgage servicing rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The valuation models estimate the present value of estimated future net servicing income. The Company classifies its servicing rights as Level 3. Fair Value Measurements (in thousands) Fair Value Quoted Prices Other Significant December 31, 2016 Assets: U.S. government and federal agency obligations $ 13,364 $  0 13,364 $ 0 Government sponsored enterprises 32,459 0 32,459 0 Obligations of states and political subdivisions 42,032 0 42,032 0 Mortgage-backed securities 126,657 0 126,657 0 Mortgage servicing rights 2,584 0 0 2,584 Total $ 217,096 $ 0 $ 214,512 $ 2,584 Fair Value Measurements (in thousands) Fair Value Quoted Prices Other Significant December 31, 2015 Assets: Government sponsored enterprises $ 73,497 $ 0 73,497 $ 0 Obligations of states and political subdivisions 32,706 0 32,706 0 Mortgage-backed securities 128,851 0 128,851 0 Mortgage servicing rights 2,847 0 0 2,847 Total $ 237,901 $ 0 $ 235,054 $ 2,847 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: (in thousands) Fair Value Balance at December 31, 2014 $ 2,762 Total gains or losses (realized/unrealized): Included in earnings (301 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 386 Settlements 0 Balance at December 31, 2015 $ 2,847 Total gains or losses (realized/unrealized): Included in earnings (529 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 266 Settlements 0 Balance at December 31, 2016 $ 2,584 The change in valuation of mortgage servicing rights arising from inputs and assumptions increased $108,000 and $372,000 for the years ended December 31, 2016 and 2015, respectively. Quantitative Information about Level 3 Fair Value Valuation Technique Unobservable Inputs Input Value 2016 2015 Mortgage servicing rights Discounted cash flows Weighted-Average Constant Prepayment Rate 10.68 % 9.58 % Weighted-Average Note Rate 3.85 % 3.92 % Weighted-Average Discount Rate 9.69 % 9.16 % Weighted-Average Expected Life (in 5.60 5.90 Valuation methods for instruments measured at fair value on a nonrecurring basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Impaired Loans The Company does not record loans at fair value on a recurring basis other than loans that are considered impaired. The net carrying value of impaired loans is generally based on fair values of the underlying collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. Once the fair value of the collateral has been determined and any impairment amount calculated, a specific reserve allocation is made. Because many of these inputs are not observable, the measurements are classified as Level 3. As of December 31, 2016, the Company identified $7.0 million in impaired loans that had specific allowances for losses aggregating $1.1million. Related to these loans, there was $1.0 million in charge-offs recorded during the year ended December 31, 2016. As of December 31, 2015, the Company identified $5.7 million in impaired loans that had specific allowances for losses aggregating $1.5 million. Related to these loans, there was $1.9 million in charge-offs recorded during the year ended December 31, 2015. Other Real Estate Owned and Repossessed Assets Other real estate owned and repossessed assets consisted of loan collateral that has been repossessed through foreclosure. This collateral comprises of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Other real estate owned assets are recorded as held for sale initially at the lower of the loan balance or fair value of the collateral less estimated selling costs. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. Because many of these inputs are not observable, the measurements are classified as Level 3. Fair Value Measurements Using (in thousands) Total Quoted Prices Other Significant Total Gains December 31, 2016 Assets: Impaired loans: Commercial, financial, & agricultural $ 584 $ 0 $ 0 $ 584 $ (421 ) Real estate construction - residential 0 0 0 0 0 Real estate construction - commercial 42 0 0 42 0 Real estate mortgage - residential 3,602 0 0 3,602 (316 ) Real estate mortgage - commercial 1,641 0 0 1,641 (257 ) Consumer 81 0 0 81 (35 ) Total $ 5,950 $ 0 $ 0 $ 5,950 $  (1,029 ) Other real estate owned and repossessed $ 14,162 $ 0 $ 0 $ 14,162 $ 25 December 31, 2015 Assets: Impaired loans: Commercial, financial, & agricultural $ 272 $ 0 $ 0 $ 272 $ (920 ) Real estate construction - residential 0 0 0 0 0 Real estate construction - commercial 87 0 0 87 (10 ) Real estate mortgage - residential 3,336 0 0 3,336 (567 ) Real estate mortgage - commercial 369 0 0 369 (322 ) Consumer 125 0 0 125 (66 ) Total $ 4,189 $ 0 $ 0 $ 4,189 $ (1,885 ) Other real estate owned and repossessed $ 15,992 $ 0 $ 0 $ 15,992 $ 118 * Total gains (losses) reported for other real estate owned and repossessed assets includes charge-offs, valuation write-downs, and net losses taken during the periods reported.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2016
Financial Instruments, Owned, at Fair Value [Abstract]
Fair Value of Financial Instruments	(16) Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value: Loans The fair values of loans are estimated by discounting the expected future cash flows using the current rates at which similar loans could be made to borrowers with similar credit ratings and for the same remaining maturities. The net carrying amount of impaired loans is generally based on the fair values of collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. This method of estimating fair value does not incorporate the exit-price concept of fair value prescribed by ASC Topic 820. Investment Securities A detailed description of the fair value measurement of the debt instruments in the available-for-sale sections of the investment security portfolio is provided in the Fair Value Measurement Investment Securities Federal Home Loan Bank (FHLB) Stock Ownership of equity securities of FHLB is restricted and there is no established market for their resale. The carrying amount is a reasonable estimate of fair value. Federal Funds Sold, Cash, and Due from Banks The carrying amounts of short-term federal funds sold and securities purchased under agreements to resell, interest earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold and securities purchased under agreements to resell classified as short-term generally mature in 90 days or less. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. Cash Surrender Value – Life Insurance The fair value of Bank owned life insurance (BOLI) approximates the carrying amount. Upon liquidation of these investments, the Company would receive the cash surrender value which equals the carrying amount. Accrued Interest Receivable and Payable For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments. Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand, NOW accounts, savings, and money market, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Securities Sold under Agreements to Repurchase and Interest-bearing Demand Notes to U.S. Treasury For securities sold under agreements to repurchase and interest-bearing demand notes to U.S. Treasury, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period. Subordinated Notes and Other Borrowings The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities. A summary of the carrying amounts and fair values of the Company’s financial instruments at December 31, 2016 and 2015 is as follows: December 31, 2016 December 31, 2016 Quoted Prices Other Net (in thousands) Carrying amount Fair value Assets: Cash and due from banks $ 25,589 $ 25,589 $ 25,589 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 1,406 1,406 1,406 0 0 Investment in available-for-sale securities 214,512 214,512 0 214,512 0 Loans, net 964,143 959,929 0 0 959,929 Investment in FHLB stock 5,149 5,149 0 5,149 0 Mortgage servicing rights 2,584 2,584 0 0 2,584 Cash surrender value - life insurance 2,409 2,409 0 2,409 0 Accrued interest receivable 5,183 5,183 5,183 0 0 $ 1,220,975 $ 1,216,761 $ 32,178 $ 222,070 $ 962,513 Liabilities: Deposits: Non-interest bearing demand $ 235,975 $ 235,975 $ 235,975 $ 0 $ 0 Savings, interest checking and money market 468,731 468,731 468,731 0 0 Time deposits 305,960 304,334 0 0 304,334 Federal funds purchased and securities sold under agreements to repurchase 31,015 31,015 31,015 0 0 Subordinated notes 49,486 33,712 0 33,712 0 Other borrowings 93,392 93,209 0 93,209 0 Accrued interest payable 498 498 498 0 0 $  1,185,057 $  1,167,474 $  736,219 $  126,921 $  304,334 December 31, 2015 December 31, 2015 Quoted Prices Other Net (in thousands) Carrying amount Fair value Assets: Cash and due from banks $ 20,484 $ 20,484 $ 20,484 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 7,893 7,893 7,893 0 0 Investment in available-for-sale securities 235,054 235,054 0 235,054 0 Loans, net 856,476 854,775 0 0 854,775 Investment in FHLB stock 3,390 3,390 0 3,390 0 Mortgage servicing rights 2,847 2,847 0 0 2,847 Cash surrender value - life insurance 2,348 2,348 0 2,348 0 Accrued interest receivable 4,853 4,853 4,853 0 0 $ 1,133,345 $ 1,131,644 $ 33,230 $ 240,792 $ 857,622 Liabilities: Deposits: Non-interest bearing demand $ 208,035 $ 208,035 $ 208,035 $ 0 $ 0 Savings, interest checking and money market 441,080 441,080 441,080 0 0 Time deposits 298,082 298,323 0 0 298,323 Federal funds purchased and securities sold under agreements to repurchase 56,834 56,834 56,834 0 0 Subordinated notes 49,486 40,821 0 40,821 0 Federal Home Loan Bank advances 50,000 52,340 0 52,340 0 Accrued interest payable 382 382 382 0 0 $  1,103,899 $  1,097,815 $  706,331 $  93,161 $  298,323 Off-Balance-Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates. Limitations The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates.

Repurchase Reserve Liability

Repurchase Reserve Liability	12 Months Ended
	Dec. 31, 2016
Repurchase Reserve Liability [Abstract]
Repurchase Reserve Liability	(17) Repurchase Reserve Liability The Company’s repurchase reserve liability for estimated losses incurred on sold loans was $160,000 at both December 31, 2016 and 2015. This liability represents management’s estimate of the potential repurchase or make-whole liability for residential mortgage loans originated for sale that may arise from representation and warranty claims that could relate to a variety of issues, including but not limited to, misrepresentation of facts, appraisal issues, or program requirements that may not meet investor guidelines. At December 31, 2016, the Company accrued $2,000 for the reimbursement of expenses incurred on one repurchase loss remitted in April 2016 compared to $40,000 accrued for the expenses on one repurchase loss remitted in April 2015 of the prior year. At December 31, 2016, the Company was servicing 2,877 loans sold to the secondary market with a balance of approximately $294.4 million compared to 3,024 loans sold with a balance of approximately $312.1 million at December 31, 2015. (in thousands) 2016 2015 2014 Balance at beginning of year $ 160 $ 160 $ 160 Provision for repurchase liability 2 40 0 Reimbursement of expenses (2 ) (40 ) 0 Balance at end of year $ 160 $ 160 $ 160

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(18) Commitments and Contingencies The Company issues financial instruments with off-balance-sheet risk in the normal course of business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At December 31, 2016, no amounts have been accrued for any estimated losses for these financial instruments. The contractual amount of off-balance-sheet financial instruments as of December 31, 2016 and 2015 is as follows: (in thousands) 2016 2015 Commitments to extend credit $ 253,375 $ 161,306 Commitments to originate residential first and second mortgage loans 2,626 3,175 Standby letters of credit 2,745 1,466 Total $ 258,746 $ 165,947 Commitments Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments and letters of credit are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, furniture and equipment, and real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support contractual obligations of the Company’s customers. The approximate remaining term of standby letters of credit range from one month to five years at December 31, 2016. Pending Litigation The Company and its subsidiaries are defendants in various legal actions incidental to the Company’s past and current business activities. Based on the Company’s analysis, and considering the inherent uncertainties associated with litigation, management does not believe that it is reasonably possible that these legal actions will materially adversely affect the Company’s consolidated financial condition or results of operations in the near term. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Some legal matters, which are at early stages in the legal process, have not yet progressed to the point where a loss amount can be estimated.

Condensed Financial Information

Condensed Financial Information of the Parent Company Only	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of the Parent Company Only
Condensed Financial Information of the Parent Company Only	(19) Condensed Financial Information of the Parent Company Only Following are the condensed financial statements of Hawthorn Bancshares, Inc. (Parent only) as of and for the years indicated: Condensed Balance Sheets December 31, (in thousands) 2016 2015 Assets Cash and due from bank subsidiaries $ 3,945 $ 4,971 Investment in equity securities 1,486 1,486 Investment in subsidiaries 139,686 134,099 Deferred tax asset 2,558 2,116 Other assets 23 7 Total assets $ 147,698 $ 142,679 Liabilities and Stockholders’ Equity Subordinated notes $ 49,486 $ 49,486 Other liabilities 7,195 5,907 Stockholders’ equity 91,017 87,286 Total liabilities and stockholders’ equity $ 147,698 $ 142,679 Condensed Statements of Income For the Years Ended December 31, 2016 2015 2014 Income Interest and dividends received from subsidiaries $ 46 $ 1,039 $ 2,538 Total income 46 1,039 2,538 Expenses Interest on subordinated notes 1,494 1,293 1,264 Other 2,039 2,138 1,730 Total expenses 3,533 3,431 2,994 Income before income tax benefit and equity in undistributed income of subsidiaries (3,487 ) (2,392 ) (456 ) Income tax benefit 1,337 1,065 1,100 Equity in undistributed income of subsidiaries 9,432 9,926 7,010 Net income $ 7,282 $ 8,599 $ 7,654 Condensed Statements of Cash Flows For the Years Ended December 31, (in thousands) 2016 2015 2014 Cash flows from operating activities: Net income $ 7,282 $ 8,599 $ 7,654 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (9,432 ) (9,926 ) (7,010 ) Stock based compensation expense 17 10 20 Increase in deferred tax asset (442 ) (127 ) (1,415 ) Other, net 769 732 1,942 Net cash (used) provided by operating activities $ (1,806 ) $ (712 ) $ 1,191 Cash flows from investing activities: Investment in subsidiary $ 2,500 $ 5,750 $ 400 Net cash provided by investing activities $ 2,500 $ 5,750 $ 400 Cash flows from financing activities: Cash dividends paid - common stock $ (1,097 ) $ (1,058 ) $ (1,017 ) Purchase of treasury stock (623 ) (33 ) 0 Net cash used in financing activities $ (1,720 ) $ (1,091 ) $ (1,017 ) Net (decrease) increase in cash and due from banks (1,026 ) 3,947 574 Cash and due from banks at beginning of year 4,971 1,024 450 Cash and due from banks at end of year $ 3,945 $ 4,971 $ 1,024

Quarterly Financial Information

Quarterly Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)	(20) Quarterly Financial Information (Unaudited) (In thousands except per share data) First Second Third Fourth Year Year Ended December 31, 2016 Interest income $  11,176 $  11,350 $  11,607 $  11,877 $  46,010 Interest expense 1,328 1,379 1,459 1,497 5,663 Net interest income 9,848 9,971 10,148 10,380 40,347 Provision for loan losses 250 425 300 450 1,425 Noninterest income 2,448 1,949 2,125 2,395 8,917 Noninterest expense 9,083 9,353 9,086 9,285 36,807 Income tax expense 965 730 1,003 1,052 3,750 Net income $ 1,998 $ 1,412 $ 1,884 $ 1,988 $ 7,282 Net income per share: Basic earnings per share $ 0.35 $ 0.25 $ 0.33 $ 0.35 $ 1.29 Diluted earnings per share 0.35 0.25 0.33 0.35 1.29 Year Ended December 31, 2015 Interest income $ 11,198 $ 11,214 $ 11,829 $ 11,515 $ 45,756 Interest expense 1,220 1,230 1,271 1,278 4,999 Net interest income 9,978 9,984 10,558 10,237 40,757 Provision for loan losses 0 250 0 0 250 Noninterest income 1,987 2,461 2,337 2,381 9,166 Noninterest expense 8,708 9,267 8,978 9,541 36,494 Income tax expense 1,119 1,001 1,377 1,083 4,580 Net income $ 2,138 $ 1,927 $ 2,540 $ 1,994 $ 8,599 Net income per share: Basic earnings per share $ 0.38 $ 0.34 $ 0.45 $ 0.35 $ 1.52 Diluted earnings per share 0.38 0.34 0.45 0.35 1.52

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation In December of 2008 and March of 2010, the Company formed Hawthorn Real Estate, LLC, and Real Estate Holdings of Missouri, LLC, respectively (the Real Estate Companies); both are wholly owned subsidiaries of the Company. The consolidated financial statements include the accounts of the Company, Hawthorn Bank (the Bank), and the Real Estate Companies. All significant intercompany accounts and transactions have been eliminated in consolidation.
Loans	Loans Loans that the Company has the intent and ability to hold for the foreseeable future or maturity are held for investment at their stated unpaid principal balance amount less unearned income and the allowance for loan losses. Income on loans is accrued on a simple-interest basis. Loan origination fees and certain direct costs are deferred and recognized over the life of the loan as an adjustment to yield. Loans Held for Sale The Bank originates certain loans, which are sold in the secondary market. These loans are classified as held for sale upon origination based on management’s intent to sell and are accounted for at the lower of adjusted cost or fair value. Adjusted cost reflects the funded loan amount and any loan origination costs and fees. In order to manage the risk associated with such activities, the Company upon locking in an interest rate with the borrower enters into an agreement to sell such loans in the secondary market. Loans held for sale are typically sold with servicing rights retained and without recourse except for normal and customary representation and warranty provisions. Mortgage loans held for sale were $162,000 at December 31, 2016 compared to $1.2 million loans held for sale at December 31, 2015. Impaired Loans A loan is considered impaired when it is probable the Company will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. Included in impaired loans are all non-accrual loans and loans whose terms have been modified in a troubled debt restructuring. Impaired loans are individually evaluated for impairment based on fair values of the underlying collateral, obtained through independent appraisals or internal valuations for a collateral dependent loan or by discounting the total expected future cash flows. Non-Accrual Loans Loans are placed on nonaccrual status when management believes that the borrower’s financial condition, after consideration of business conditions and collection efforts, is such that collection of interest is doubtful. Loans that are contractually 90 days past due as to principal and/or interest payments are generally placed on non-accrual, unless they are both well-secured and in the process of collection. Subsequent interest payments received on such loans are applied to principal if doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. A loan remains on nonaccrual status until the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current. Restructured Loans A loan is accounted for as a troubled debt restructuring (TDR) if the Company, for economic or legal reasons related to the borrowers’ financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves (1) modification of terms such as a reduction of the stated interest rate, loan principal, accrued interest, or an extended maturity date (2) a loan renewal at a stated interest rate lower than the current market rate for a new loan with similar risk, or (3) debt that was not reaffirmed in bankruptcy. Nonperforming TDRs are returned to performing status once the borrower demonstrates the ability to pay under the terms of the restructured note through a sustained period of repayment performance, which is generally six months. The Company includes all performing and non-performing TDRs in the impaired and non-performing asset totals. The Company measures the impairment loss of a TDR in the same manner as described below. TDRs which are performing under their contractual terms continue to accrue interest which is recognized in current earnings.
Allowance for Loan Losses	Allowance for Loan Losses Management has identified the accounting policy related to the allowance for loan losses as critical to the understanding of the Company’s results of operations, since the application of this policy requires significant management assumptions and estimates that could result in materially different amounts to be reported if conditions or underlying circumstances were to change. The fair value of impaired loans deemed collateral dependent, for purposes of the measurement of the impairment loss, can be subject to changing market conditions, supply and demand, condition of the collateral and other factors over time. Such volatility can have an impact on the financial performance of the Company. Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. When loans become 90 days past due, they are generally placed on nonaccrual status or charged off unless extenuating circumstances justify leaving the loan on accrual basis. When loans reach 120 days past due and there is little likelihood of repayment, the uncollectible portion of the loans are charged off. Loan charge-offs reduce the allowance for loan losses, and recoveries of loans previously charged off are added back to the allowance. If management determines that it is probable that all amounts due on a loan will not be collected under the original terms of the loan agreement, the loan is considered to be impaired. The specific reserve component The incurred loss component
Investment in Debt and Equity Securities	Investment in Debt and Equity Securities At the time of purchase, debt securities are classified into one of two categories: available-for-sale or held-to-maturity. Held-to-maturity securities are those securities which the Company has the positive intent and ability to hold until maturity. All debt securities not classified as held-to-maturity are classified as available-for-sale. The Company’s securities are classified as available-for-sale and are carried at fair value. Changes in fair value, excluding certain losses associated with other-than-temporary impairment, are reported in other comprehensive income, net of taxes, a component of stockholders’ equity. Securities are periodically evaluated for other-than-temporary impairment in accordance with guidance provided in the FASB ASC Topic 320, Investments – Debt and Equity Securities. Premiums and discounts are amortized using the interest method over the lives of the respective securities, with consideration of historical and estimated prepayment rates for mortgage-backed securities, as an adjustment to yield. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings based on the specific identification method for determining the cost of securities sold.
Capital Stock of the Federal Home Loan Bank	Capital Stock of the Federal Home Loan Bank The Bank, as a member of the Federal Home Loan Bank System administered by the Federal Housing Finance Agency, is required to maintain an investment in the capital stock of the Federal Home Loan Bank of Des Moines (FHLB) in an amount equal to 12 basis points of the Bank’s year-end total assets plus 4.00% of advances from the FHLB to the Bank. These investments are recorded at cost, which represents redemption value.
Premises and Equipment	Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation applicable to buildings and improve-ments and furniture and equipment is charged to expense using straight-line and accelerated methods over the estimated useful lives of the assets. Such lives are estimated to be 5 to 40 years for buildings and improvements and 3 to 15 years for furniture and equipment. Maintenance and repairs are charged to expense as incurred.
Mortgage Servicing Rights	Mortgage Servicing Rights The Company originates and sells residential mortgage loans in the secondary market and may retain the right to service the loans sold. Servicing involves the collection of payments from individual borrowers and the distribution of those payments to the investors or master servicer. Upon a sale of mortgage loans for which servicing rights are retained, the retained mortgage servicing rights asset is capitalized at the fair value of future net cash flows expected to be realized for performing servicing activities. Mortgage servicing rights do not trade in an active market with readily observable prices. The Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds, discount rates, delinquencies, ancillary income, and cost to service. These assumptions are validated on a periodic basis. The fair value is validated on a quarterly basis with an independent third party valuation specialist firm. In addition to the changes in fair value of the mortgage servicing rights, the Company also recorded loan servicing fee income as part of real estate servicing fees, net in the statement of income. Loan servicing fee income represents revenue earned for servicing mortgage loans. The servicing fees are based on contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected. Corresponding loan servicing costs are changed to expense as incurred.
Other Real Estate Owned and Repossessed Assets	Other Real Estate Owned and Repossessed Assets Other real estate owned and repossessed assets consist of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Other real estate owned assets are initially recorded as held for sale at the fair value of the collateral less estimated selling costs. Any adjustment is recorded as a charge-off against the allowance for loan losses. The Company relies on external appraisals and assessment of property values by internal staff. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgment based on experience and expertise of internal specialists. Subsequent to foreclosure, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. The write-downs are recorded as other real estate expense. The Company establishes a valuation allowance related to other real estate owned on an asset-by-asset basis. The valuation allowance is created during the holding period when the fair value less cost to sell is lower than the cost of the property.
Pension Plan	Pension Plan The Company provides a noncontributory defined benefit pension plan for all full-time employees. The benefits are based on age, years of service and the level of compensation during the employees highest ten years of compensation before retirement. Net periodic costs are recognized as employees render the services necessary to earn the retirement benefits. The Company records annual amounts relating to its pension plan based on calculations that incorporate various actuarial and other assumptions including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. The Company reviews its assumptions on an annual basis and may make modifications to the assumptions based on current rates and trends when it is appropriate to do so. The Company believes that the assumptions utilized in recording its obligations under its plan are reasonable based on its experience and market conditions. The Company follows authoritative guidance included in the FASB ASC Topic 715, Compensation – Retirement Plans Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans Fair Value Measurements and Disclosures
Income Taxes	Income Taxes Income taxes are accounted for under the asset / liability method by recognizing the amount of taxes payable or refundable for the current period and deferred tax assets and liabilities for future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Judgment is required in addressing the Company’s future tax consequences of events that have been recognized in the consolidated financial statements or tax returns such as realization of the effects of temporary differences, net operating loss carry forwards and changes in tax laws or interpretations thereof. A valuation allowance is established when in the judgment of management, it is more likely than not that such deferred tax assets will not become realizable. In this case, the Company would adjust the recorded value of our deferred tax asset, which would result in a direct charge to income tax expense in the period that the determination was made. Likewise, the Company would reverse the valuation allowance when it is expected to realize the deferred tax asset. The Company has not recognized any tax liabilities or any interest or penalties in income tax expense related to uncertain tax positions as of December 31, 2016, 2015, and 2014.
Trust Department	Trust Department Property held by the Bank in a fiduciary or agency capacity for customers is not included in the accompanying consolidated balance sheets, since such items are not assets of the Company. Trust department income is recognized on the accrual basis.
Consolidated Statements of Cash Flows	Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of short-term federal funds sold and securities sold or purchased under agreements to resell, interest earning deposits with banks, cash, and due from banks.
Stock-Based Compensation	Stock-Based Compensation The Company’s stock-based employee compensation plan is described in Note 12, Stock Compensation. In accordance with FASB ASC Topic 718, Compensation – Stock Compensation
Treasury Stock	Treasury Stock The purchase of the Company’s common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost associated with such stock on a first-in-first-out basis.
Reclassifications	Reclassifications Certain prior year information has been reclassified to conform to the current year presentation.
New accounting principles adopted	The following represents significant new accounting principles adopted in 2016: Consolidation Amendments to the Consolidation Analysis Intangible Assets Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

Loans and Allowance for Loan 29

Loans and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]
Schedule of summary of loans, by major class within the Company's loan portfolio	(in thousands) 2016 2015 Commercial, financial, and agricultural $ 182,881 $ 149,091 Real estate construction - residential 18,907 16,895 Real estate construction - commercial 55,653 33,943 Real estate mortgage - residential 259,900 256,086 Real estate mortgage - commercial 426,470 385,869 Installment and other consumer 30,218 23,196 Total loans $ 974,029 $ 865,080
Schedule of loans to directors and executive officers	(in thousands) Balance at December 31, 2015 $ 3,376 New loans 64 Amounts collected (167 ) Balance at December 31, 2016 $ 3,273
Schedule of summary of the allowance for loan losses	(in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Un- Total Balance at December 31, 2013 $ 2,374 $ 931 $ 631 $ 2,959 $ 6,523 $ 294 $ 7 $ 13,719 Additions: Provision for loan losses 371 (592 ) 326 (226 ) (107 ) 195 33 0 Deductions: Loans charged off 1,285 349 491 408 2,890 405 0 5,828 Less recoveries on loans (319 ) (181 ) 0 (202 ) (320 ) (186 ) 0 (1,208 ) Net loans charged off 966 168 491 206 2,570 219 0 4,620 Balance at December 31, 2014 $ 1,779 $ 171 $ 466 $ 2,527 $ 3,846 $ 270 $ 40 $ 9,099 Additions: Provision for loan losses 833 (434 ) 193 153 (713 ) 157 61 250 Deductions: Loans charged off 1,131 0 15 379 363 302 0 2,190 Less recoveries on loans (672 ) (322 ) 0 (138 ) (165 ) (148 ) 0 (1,445 ) Net loans charged off 459 (322 ) 15 241 198 154 0 745 Balance at December 31, 2015 $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Additions: Provision for loan losses 690 49 (732 ) 381 865 113 59 1,425 Deductions: Loans charged off 389 0 1 495 147 258 0 1,290 Less recoveries on loans (299 ) 0 (502 ) (60 ) (140 ) (146 ) 0 (1,147 ) Net loans charged off 90 0 (501 ) 435 7 112 0 143 Balance at December 31, 2016 $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 $ 274 $ 160 $ 9,886 (in thousands) Commercial, Real Estate Real Estate Real Estate Real Estate Installment Un- Total December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 469 $ 0 $ 7 $ 319 $ 277 $ 8 $ 0 $ 1,080 Collectively evaluated for impairment 2,284 108 406 2,066 3,516 266 160 8,806 Total $ 2,753 $ 108 $ 413 $ 2,385 $ 3,793 $ 274 $ 160 $ 9,886 Loans outstanding: Individually evaluated for impairment $ 1,617 $ 0 $ 49 $ 5,471 $ 1,918 $ 89 $ 0 $ 9,144 Collectively evaluated for impairment 181,264 18,907 55,604 254,429 424,552 30,129 0 964,885 Total $ 182,881 $ 18,907 $ 55,653 $ 259,900 $ 426,470 $ 30,218 $ 0 $ 974,029 December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 285 $ 0 $ 15 $ 955 $ 266 $ 19 $ 0 $ 1,540 Collectively evaluated for impairment 1,868 59 629 1,484 2,669 254 101 7,064 Total $ 2,153 $ 59 $ 644 $ 2,439 $ 2,935 $ 273 $ 101 $ 8,604 Loans outstanding: Individually evaluated for impairment $ 1,005 $ 0 $ 102 $ 5,936 $ 3,081 $ 144 $ 0 $ 10,268 Collectively evaluated for impairment 148,086 16,895 33,841 250,150 382,788 23,052 0 854,812 Total $ 149,091 $ 16,895 $ 33,943 $ 256,086 $ 385,869 $ 23,196 $ 0 $ 865,080
Schedule of impaired loans	(in thousands) 2016 2015 Non-accrual loans $ 3,429 $ 4,418 Performing TDRs 5,715 5,850 Total impaired loans $ 9,144 $ 10,268 (in thousands) Recorded Unpaid Specific December 31, 2016 With no related allowance recorded: Commercial, financial and agricultural $ 564 $ 706 $ 0 Real estate - residential 1,550 1,557 0 Total $ 2,114 $ 2,263 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 1,053 $ 1,078 $ 469 Real estate - construction commercial 49 56 7 Real estate - residential 3,921 3,990 319 Real estate - commercial 1,918 1,988 277 Consumer 89 116 8 Total $ 7,030 $ 7,228 $ 1,080 Total impaired loans $ 9,144 $ 9,491 $ 1,080 (in thousands) Recorded Unpaid Specific December 31, 2015 With no related allowance recorded: Commercial, financial and agricultural $ 448 $ 450 $ 0 Real estate - residential 1,645 1,712 0 Real estate - commercial 2,446 2,572 0 Total $ 4,539 $ 4,734 $ 0 With an allowance recorded: Commercial, financial and agricultural $ 557 $ 572 $ 285 Real estate - construction commercial 102 115 15 Real estate - residential 4,291 4,320 955 Real estate - commercial 635 884 266 Consumer 144 182 19 Total $ 5,729 $ 6,073 $ 1,540 Total impaired loans $ 10,268 $ 10,807 $ 1,540 2016 2015 (in thousands) Average Interest Average Interest With no related allowance recorded: Commercial, financial and agricultural $ 669 $ 13 $ 2,949 $ 39 Real estate - construction residential 0 0 536 0 Real estate - construction commercial 0 0 1,105 0 Real estate - residential 1,713 52 2,331 37 Real estate - commercial 353 0 5,169 119 Consumer 0 0 7 1 Total $ 2,735 $ 65 $ 12,097 $ 196 With an allowance recorded: Commercial, financial and agricultural $ 899 $ 23 $ 1,356 $ 22 Real estate - construction commercial 51 0 52 0 Real estate - residential 3,553 114 4,625 110 Real estate - commercial 1,842 83 1,161 0 Consumer 109 0 183 0 Total $ 6,454 $ 220 $ 7,377 $ 132 Total impaired loans $ 9,189 $ 285 $ 19,474 $ 328
Schedule of aging information for the Company's past due and non-accrual loans	(in thousands) Current or 30-89 Days 90 Days Non-Accrual Total December 31, 2016 Commercial, Financial, and Agricultural $ 181,609 $ 290 $ 0 $ 982 $ 182,881 Real Estate Construction - Residential 18,681 226 0 0 18,907 Real Estate Construction - Commercial 55,603 0 0 50 55,653 Real Estate Mortgage - Residential 254,758 3,200 54 1,888 259,900 Real Estate Mortgage - Commercial 425,260 790 0 420 426,470 Installment and Other Consumer 29,920 198 11 89 30,218 Total $ 965,831 $ 4,704 $ 65 $ 3,429 $ 974,029 December 31, 2015 Commercial, Financial, and Agricultural $ 148,597 $ 185 $ 1 $ 308 $ 149,091 Real Estate Construction - Residential 16,895 0 0 0 16,895 Real Estate Construction - Commercial 33,776 65 0 102 33,943 Real Estate Mortgage - Residential 251,253 2,511 0 2,322 256,086 Real Estate Mortgage - Commercial 383,684 643 0 1,542 385,869 Installment and Other Consumer 22,840 207 5 144 23,196 Total $ 857,045 $ 3,611 $ 6 $ 4,418 $ 865,080
Schedule of risk categories by class	(in thousands) Commercial, Real Estate Real Estate Real Real Estate Installment Total At December 31, 2016 Watch $ 10,295 $ 665 $ 1,113 $ 16,577 $ 44,611 $ 0 $ 73,261 Substandard 798 640 0 2,159 426 24 4,047 Performing TDRs 635 0 0 3,582 1,498 0 5,715 Non-accrual 982 0 50 1,888 420 89 3,429 Total $ 12,710 $ 1,305 $ 1,163 $ 24,206 $ 46,955 $ 113 $ 86,452 At December 31, 2015 Watch $ 8,663 $ 1,267 $ 1,296 $ 22,191 $ 24,303 $ 186 $ 57,906 Substandard 421 0 37 3,737 1,485 36 5,716 Performing TDRs 697 0 0 3,615 1,538 0 5,850 Non-accrual 308 0 102 2,322 1,542 144 4,418 Total $ 10,089 $ 1,267 $ 1,435 $ 31,865 $ 28,868 $ 366 $ 73,890
Schedule of summary of loans that were modified as TDRs	2016 2015 Recorded Investment (1) Recorded Investment (1) (in thousands) Number of Pre- Post- Number of Pre- Post- Troubled Debt Restructurings Commercial, financial and agricultural 0 $ 0 $ 0 2 $ 250 $ 229 Real estate mortgage - residential 7 536 536 1 519 374 Real estate mortgage - commercial 0 0 0 4 1,273 1,249 Total 7 $ 536 $ 536 7 $ 2,042 $ 1,852 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off, or foreclosed upon during the period ended are not reported.

Real Estate and Other Assets 30

Real Estate and Other Assets Acquired in Settlement of Loans (Tables)	12 Months Ended
	Dec. 31, 2016
Other Real Estate [Abstract]
Schedule of summary of real estate and other assets acquired in settlement of loans	(in thousands) 2016 2015 Commercial $ 809 $ 1,445 Real estate construction - commercial 12,380 12,380 Real estate mortgage - residential 647 477 Real estate mortgage - commercial 3,439 4,923 Repossessed assets 16 0 Total $ 17,291 $ 19,225 Less valuation allowance for other real estate owned (3,129 ) (3,233 ) Total other real estate owned and foreclosed assets $ 14,162 $ 15,992
Schedule of changes in the net carrying amount of other real estate owned and repossessed assets	Balance at December 31, 2014 $ 15,140 Additions 5,804 Proceeds from sales (1,836 ) Charge-offs against the valuation allowance for other real estate owned, net (39 ) Net gain on sales 156 Balance at December 31, 2015 $ 19,225 Additions 2,233 Proceeds from sales (4,057 ) Charge-offs against the valuation allowance for other real estate owned, net (317 ) Net gain on sales 207 Total other real estate owned and repossessed assets $ 17,291 Less valuation allowance for other real estate owned (3,129 ) Balance at December 31, 2016 $ 14,162
Schedule of summary of activity in valuation allowance for other real estate owned in settlement of loans	(in thousands) 2016 2015 2014 Balance, beginning of year $ 3,233 $ 3,255 $ 4,675 Provision for other real estate owned 213 17 585 Charge-offs (317 ) (39 ) (2,005 ) Balance, end of year $ 3,129 $ 3,233 $ 3,255

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Schedule of amortized cost and fair value of debt securities classified as available-for-sale	(in thousands) Total Gross Unrealized Fair Value Gains Losses December 31, 2016 U.S. government and federal agency obligations $ 13,667 $ 0 $ (303 ) $ 13,364 Government sponsored enterprises 32,786 2 (329 ) 32,459 Obligations of states and political subdivisions 42,666 123 (757 ) 42,032 Mortgage-backed securities: Residential - government agencies 127,527 124 (1,995 ) 125,656 Commercial - government agencies 989 12 0 1,001 Total mortgage-backed securities 128,516 136 (1,995 ) 126,657 Total available-for-sale securities $ 217,635 $ 261 $ (3,384 ) $ 214,512 December 31, 2015 Government sponsored enterprises $ 73,605 $ 127 $ (235 ) $ 73,497 Obligations of states and political subdivisions 32,224 493 (11 ) 32,706 Mortgage-backed securities: Residential - government agencies 129,193 432 (1,768 ) 127,857 Commercial - government agencies 986 8 0 994 Total mortgage-backed securities 130,179 440 (1,768 ) 128,851 Total available-for-sale securities $ 236,008 $ 1,060 $ (2,014 ) $ 235,054
Schedule of amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity	(in thousands) Amortized Fair Due in one year or less $ 4,725 $ 4,726 Due after one year through five years 48,405 47,973 Due after five years through ten years 29,363 28,626 Due after ten years 6,626 6,530 Total 89,119 87,855 Mortgage-backed securities 128,516 126,657 Total available for sale securities $ 217,635 $ 214,512
Schedule of gross unrealized losses on debt securities and fair value of related securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position	Less than 12 months 12 months or more Total Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized At December 31, 2016 U.S. government and federal agency obligations $    13,365 $    (303 ) $    0 $    0 $    13,365 $    (303 ) Government sponsored enterprises 29,432 (329 ) 0 0 29,432 (329 ) Obligations of states and political subdivisions 32,318 (757 ) 0 0 32,318 (757 ) Mortgage-backed securities: Residential - government agencies 109,772 (1,848 ) 3,742 (147 ) 113,514 (1,995 ) Total $ 184,887 $ (3,237 ) $ 3,742 $ (147 ) $ 188,629 $ (3,384 ) (in thousands) At December 31, 2015 Government sponsored enterprises $ 43,539 $ (222 ) $ 1,002 $ (13 ) $ 44,541 $ (235 ) Obligations of states and political subdivisions 2,571 (6 ) 718 (5 ) 3,289 (11 ) Mortgage-backed securities: Residential - government agencies 56,095 (620 ) 43,576 (1,148 ) 99,671 (1,768 ) Total $ 102,205 $ (848 ) $ 45,296 $ (1,166 ) $ 147,501 $ (2,014 )
Schedule of components of investment securities gains (losses), which are recognized in earnings	(in thousands) 2016 2015 2014 Gains realized on sales $ 623 $ 8 $ 86 Losses realized on sales (21 ) 0 (66 ) Other-than-temporary impairment recognized 0 0 0 Investment securities gains $ 602 $ 8 $ 20

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Premises and Equipment
Schedule of summary of premises and equipment	(in thousands) 2016 2015 Land and land improvements $ 9,952 $ 10,165 Buildings and improvements 35,657 35,588 Furniture and equipment 13,473 12,906 Construction in progress 271 94 Total 59,353 58,753 Less accumulated depreciation 23,831 22,364 Premises and equipment, net $ 35,522 $ 36,389
Schedule of depreciation expense	(in thousands) 2016 2015 2014 Depreciation expense $ 1,782 $ 1,810 $ 1,758

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Intangible Assets
Schedule of changes in mortgage servicing rights (MSRs)	(in thousands) 2016 2015 2014 Balance at beginning of year $ 2,847 $ 2,762 $ 3,036 Originated mortgage servicing rights 266 386 302 Changes in fair value: Due to change in model inputs and assumptions (1) 108 372 66 Other changes in fair value (2) (637 ) (673 ) (642 ) Balance at end of year $ 2,584 $ 2,847 $ 2,762 (1) The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value reflect changes due to customer payments and passage of time.
Schedule of key data and assumptions used in estimating the fair value of the Company's MSRs	2016 2015 Weighted-Average Constant Prepayment Rate 10.68 % 9.58 % Weighted-Average Note Rate 3.85 % 3.92 % Weighted-Average Discount Rate 9.69 % 9.16 % Weighted-Average Expected Life (in years) 5.60 5.90

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2016
Deposits
Schedule of maturities of total time deposits	(in thousands) 2016 2015 Due within: One year $ 217,970 $ 201,418 Two years 50,330 56,026 Three years 24,807 29,030 Four years 6,363 6,022 Five years 6,490 5,586 Thereafter 0 0 Total $ 305,960 $ 298,082
Schedule of maturities of certificates and other time deposits in denominations of $100,000 or more	(in thousands) 2016 2015 Due within: Three months or less $ 50,270 $ 39,122 Over three months through six months 34,500 30,704 Over six months through twelve months 40,249 30,432 Over twelve months 27,237 31,986 Total $ 152,256 $ 132,244

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2016
Borrowings
Schedule of information relating to federal funds purchased and repurchase agreements	(in thousands) Year End Average Average Maximum Balance at 2016 Federal funds purchased 0.95 % 0.65 % $ 346 $ 992 $ 992 Short-term repurchase agreements 0.20 0.17 36,193 56,710 30,023 Total $ 36,539 $ 57,702 $ 31,015 2015 Federal funds purchased 0.70 % 0.41 % $ 659 $ 937 $ 0 Short-term repurchase agreements 0.10 0.17 30,266 58,464 56,834 Total $ 30,925 $ 59,401 $ 56,834
Schedule of other borrowings	(in thousands) 2016 2015 Borrower Maturity Year End Year End Year End Year End FHLB advances The Bank 2016 $ 0 na % $ 8,000 0.67 % 2017 40,900 0.90 % 5,000 1.07 % 2018 27,000 1.80 % 22,000 1.93 % 2019 10,000 1.50 % 4,000 1.79 % 2020 11,000 1.95 % 11,000 1.95 % 2021 4,000 1.71 % Other borrowings 2017 492 1.05 % 0 na % Total Bank $ 93,392 $ 50,000 Subordinated notes The Company 2034 $ 25,774 3.69 % $ 25,774 3.23 % 2035 23,712 2.82 % 23,712 2.36 % Total Company $ 49,486 $ 49,486

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of composition of income tax expense (benefit)	(in thousands) 2016 2015 2014 Current: Federal $ 3,578 $ 3,619 $ 1,105 State 489 496 137 Total current 4,067 4,115 1,242 Deferred: Federal (267 ) 391 2,353 State (50 ) 74 447 Total deferred (317 ) 465 2,800 Total income tax expense $ 3,750 $ 4,580 $ 4,042
Schedule of the applicable income tax (benefit) expense for financial reporting purposes differs from the amount computed by applying the statutory Federal income tax rate	in thousands) 2016 2015 2014 Amount % Amount % Amount % Income before provision for income tax expense $ 11,032 $ 13,179 $ 11,696 Tax at statutory federal income tax rate $ 3,751 34.00 % $ 4,481 34.00 % $ 3,977 34.00 % Tax-exempt income (314 ) (2.85 ) (369 ) (2.80 ) (348 ) (2.98 ) State income tax, net of federal tax benefit 290 2.63 376 2.85 385 3.30 Other, net 23 0.21 92 0.70 28 0.24 Provision for income tax expense $ 3,750 33.99 % $ 4,580 34.75 % $ 4,042 34.56 %
Schedule of components of deferred tax assets and deferred tax liabilities	(in thousands) 2016 2015 Deferred tax assets: Allowance for loan losses $ 3,756 $ 3,269 Impairment of other real estate owned 1,192 1,226 Goodwill 1,088 1,437 Available-for-sale securities 1,187 363 Nonaccrual loan interest 469 640 Core deposit intangible 422 556 Pension 1,415 1,242 Deferred taxes on pension 1,143 874 Deferred compensation 148 138 Other 402 342 Total deferred tax assets $ 11,222 $ 10,087 Deferred tax liabilities: Premises and equipment $ 765 $ 938 Mortgage servicing rights 968 1,064 Assets held for sale 50 49 Other 6 13 Total deferred tax liabilities 1,789 2,064 Net deferred tax assets $ 9,433 $ 8,023

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Schedule of the change in the components of the accumulated other comprehensive income (loss)	(in thousands) Unrealized Unrecognized Accumulated Balance, December 31, 2014 $ 214 $  (1,442 ) $  (1,228 ) Other comprehensive (loss) income, before reclassifications (1,291 ) 144 (1,147 ) Amounts reclassified from accumulated other comprehensive (loss) (8 ) 5 (3 ) Current period other comprehensive (loss) income, before tax (1,299 ) 149 (1,150 ) Deferred tax adjustment 0 (77 ) (77 ) Income tax benefit (expense) 494 (57 ) 437 Current period other comprehensive (loss) income, net of tax (805 ) 15 (790 ) Balance, December 31, 2015 $ (591 ) $ (1,427 ) $ (2,018 ) Other comprehensive (loss) income, before reclassifications (1,566 ) 79 (1,487 ) Amounts reclassified from accumulated other comprehensive (loss) (602 ) (786 ) (1,388 ) Current period other comprehensive loss, before tax (2,168 ) (707 ) (2,875 ) Income tax benefit 823 269 1,092 Current period other comprehensive loss, net of tax (1,345 ) (438 ) (1,783 ) Balance, December 31, 2016 $ (1,936 ) $ (1,865 ) $ (3,801 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive (loss) income are included in gain on sale of investment securities (2) The pre-tax amounts reclassified from accumulated other comprehensive income are included in the computation of net periodic pension cost. See Note 11.

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Schedule of summary of employee benefits charged to operating expenses	(in thousands) 2016 2015 2014 Payroll taxes $ 1,122 $ 1,102 $ 1,081 Medical plans 1,881 1,928 1,974 401(k) match 346 325 310 Pension plan 1,227 1,391 960 Profit-sharing 479 563 201 Other 172 164 122 Total employee benefits $ 5,227 $ 5,473 $ 4,648
Schedule of obligations and funded status	(in thousands) 2016 2015 Change in projected benefit obligation: Balance, January 1 $ 20,601 $ 19,977 Service cost 1,179 1,325 Interest cost 956 838 Actuarial (loss) gain 961 (1,084 ) Benefits paid (464 ) (455 ) Balance, December 31 $ 23,233 $ 20,601 Change in plan assets: Fair value, January 1 $ 15,031 $ 14,933 Actual return on plan assets 1,251 (75 ) Employer contribution 772 716 Expenses paid (88 ) (88 ) Benefits paid (464 ) (455 ) Fair value, December 31 $ 16,502 $ 15,031 Funded status at end of year $ (6,732 ) $ (5,570 ) Accumulated benefit obligation $ 18,586 $ 16,550
Schedule of components of net pension cost	(in thousands) 2016 2015 2014 Service cost - benefits earned during the year $ 1,179 $ 1,325 $ 981 Interest costs on projected benefit obligations 956 838 732 Expected return on plan assets (1,057 ) (957 ) (872 ) Expected administrative expenses 70 40 40 Amortization of prior service cost 79 79 79 Amortization of unrecognized net loss 0 66 0 Net periodic pension expense $ 1,227 $ 1,391 $ 960
Schedule of amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss), including amounts recognized in other comprehensive income	(in thousands) 2016 2015 Prior service costs $ (285 ) $ (364 ) Net accumulated actuarial net loss (2,723 ) (1,937 ) Accumulated other comprehensive loss (3,008 ) (2,301 ) Net periodic benefit cost in excess of cumulative employer contributions (3,724 ) (3,269 ) Net amount recognized at December 31, balance sheet $ (6,732 ) $ (5,570 ) Net gain (loss) arising during period $ (786 ) 5 Prior service cost amortization 79 79 Amortization of net actuarial loss 0 65 Total recognized in other comprehensive income (loss) $ (707 ) $ 149 Total recognized in net periodic pension cost and other comprehensive income $ 1,934 $ 1,242
Schedule of assumptions utilized to determine benefit obligations and to determine pension expense	2016 2015 2014 Determination of benefit obligation at year end: Discount rate 4.40 % 4.70 % 4.25 % Annual rate of compensation increase 4.00 % 3.78 % 3.78 % Determination of pension expense for year ended: Discount rate for the service cost 4.70 % 4.25 % 5.00 % Annual rate of compensation increase 3.78 % 3.78 % 3.73 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 7.00 %
Schedule of fair value of the Company's pension plan assets, by asset category	Fair Value Measurements (in thousands) Fair Value Quoted Prices Other Significant December 31, 2016 Cash equivalents $ 1,362 $ 1,362 $ 0 $ 0 U.S gov’t agency obligations 2,376 0 2,376 0 Mutual funds 12,764 12,764 0 0 Total $ 16,502 $ 14,126 $ 2,376 $ 0 December 31, 2015 Cash equivalents $ 1,663 $ 1,663 $ 0 $ 0 U.S gov’t agency obligations 1,802 0 1,802 0 Mutual funds 11,566 11,566 0 0 Total $ 15,031 $ 13,229 $ 1,802 $ 0
Schedule of future benefit payments expected to be paid	Year Pension (in thousands) 2017 $ 630 2018 677 2019 802 2020 873 2021 1,036 2022 to 2026 5,970

Stock Compensation (Tables)

Stock Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of summary of Company's stock option activity	Number of shares Weighted average Weighted average Aggregate 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Outstanding, beginning of year 65,270 104,400 136,653 $  20.68 $  20.73 $  21.46 Granted 0 0 0 0.00 0.00 0.00 Exercised 0 0 0 0.00 0.00 0.00 Forfeited or expired (20,812 ) (39,130 ) (32,253 ) 21.89 20.82 23.81 Outstanding, end of year 44,458 65,270 104,400 $ 20.11 $ 20.68 $ 20.73 0.99 1.41 1.93 $ 49,828 $ 0.00 $ 0.00 Exercisable, end of year 43,189 57,487 92,336 $ 20.25 $ 21.39 $ 21.11 0.97 1.24 1.75 $ 46,859 $ 0.00 $ 0.00

Earnings per Share (Tables)

Earnings per Share (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Schedule of calculations of basic and diluted earnings (loss) per share	2016 2015 2014 Basic earnings per common share: Net income available to shareholders $ 7,282 $ 8,599 $ 7,654 Basic earnings per share $ 1.29 $ 1.52 $ 1.35 Diluted earnings per common share: Net income available to shareholders $ 7,282 $ 8,599 $ 7,654 Average shares outstanding 5,639,744 5,662,013 5,662,081 Effect of dilutive stock options 0 0 0 Average shares outstanding including dilutive stock options 5,639,744 5,662,013 5,662,081 Diluted earnings per share $ 1.29 $ 1.52 $ 1.35
Schedule of antidilutive securities excluded from computation of earnings per share	2016 2015 2014 Anti-dilutive shares - option shares 44,458 65,270 104,400
Schedule of outstanding shares of the common stock	Number of shares 2016 2015 2014 Outstanding, beginning of year 5,441,190 5,233,986 5,032,679 Issuance of stock: 4% stock dividend 217,155 209,359 201,307 Purchase of treasury stock (41,738 ) (2,155 ) 0 Outstanding, end of year 5,616,607 5,441,190 5,233,986

Capital Requirements (Tables)

Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2016
Capital Requirements
Schedule of minimum total risk-based, Tier I risk-based and Tier I leverage ratios to be maintained for bank to be categorized as well capitalized	Actual Required for Capital Well-Capitalized Under (in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets): Company $  152,864 13.72 % $  89,118 8.00 % $  N.A. N.A. % Bank 148,304 13.36 88,804 8.00 111,005 10.00 Tier I Capital (to risk-weighted assets): Company $ 125,779 11.29 % $ 66,839 6.00 % $ N.A. N.A. % Bank 138,258 12.46 66,603 6.00 88,804 8.00 Common Equity Tier I Capital (to risk-weighted assets) Company $ 94,818 8.51 % $ 50,129 4.50 % $ N.A. N.A. % Bank 138,258 12.46 49,952 4.50 72,153 6.50 Tier I leverage ratio: Company $ 125,779 9.87 % $ 50,998 4.00 % $ N.A. N.A. % Bank 138,258 10.88 50,810 4.00 63,513 5.00 (in thousands) December 31, 2015 Total Capital (to risk-weighted assets): Company $ 146,068 14.78 % $ 79,066 8.00 % $ N.A. N.A. % Bank 137,572 13.98 78,718 8.00 98,398 10.00 Tier I Capital (to risk-weighted assets): Company $ 118,875 12.03 % $ 59,299 6.00 % $ N.A. N.A. % Bank 128,808 13.09 59,039 6.00 78,718 8.00 Common Equity Tier I Capital (to risk-weighted assets) Company $ 89,304 9.04 % $ 44,475 4.50 % $ N.A. N.A. % Bank 128,808 13.09 44,279 4.50 63,959 6.50 Tier I leverage ratio: Company $ 118,875 9.84 % $ 48,314 4.00 % $ N.A. N.A. % Bank 128,808 10.73 48,025 4.00 60,031 5.00

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities recorded at fair value on a recurring basis	Fair Value Measurements (in thousands) Fair Value Quoted Prices Other Significant December 31, 2016 Assets: U.S. government and federal agency obligations $ 13,364 $  0 13,364 $ 0 Government sponsored enterprises 32,459 0 32,459 0 Obligations of states and political subdivisions 42,032 0 42,032 0 Mortgage-backed securities 126,657 0 126,657 0 Mortgage servicing rights 2,584 0 0 2,584 Total $ 217,096 $ 0 $ 214,512 $ 2,584 Fair Value Measurements (in thousands) Fair Value Quoted Prices Other Significant December 31, 2015 Assets: Government sponsored enterprises $ 73,497 $ 0 73,497 $ 0 Obligations of states and political subdivisions 32,706 0 32,706 0 Mortgage-backed securities 128,851 0 128,851 0 Mortgage servicing rights 2,847 0 0 2,847 Total $ 237,901 $ 0 $ 235,054 $ 2,847
Schedule of summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	(in thousands) Fair Value Balance at December 31, 2014 $ 2,762 Total gains or losses (realized/unrealized): Included in earnings (301 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 386 Settlements 0 Balance at December 31, 2015 $ 2,847 Total gains or losses (realized/unrealized): Included in earnings (529 ) Included in other comprehensive income 0 Purchases 0 Sales 0 Issues 266 Settlements 0 Balance at December 31, 2016 $ 2,584
Schedule of quantitative Information about Level 3 Fair Value Measurements	Quantitative Information about Level 3 Fair Value Valuation Technique Unobservable Inputs Input Value 2016 2015 Mortgage servicing rights Discounted cash flows Weighted-Average Constant Prepayment Rate 10.68 % 9.58 % Weighted-Average Note Rate 3.85 % 3.92 % Weighted-Average Discount Rate 9.69 % 9.16 % Weighted-Average Expected Life (in 5.60 5.90
Schedule of valuation methods for instruments measured at fair value on a nonrecurring basis	Fair Value Measurements Using (in thousands) Total Quoted Prices Other Significant Total Gains December 31, 2016 Assets: Impaired loans: Commercial, financial, & agricultural $ 584 $ 0 $ 0 $ 584 $ (421 ) Real estate construction - residential 0 0 0 0 0 Real estate construction - commercial 42 0 0 42 0 Real estate mortgage - residential 3,602 0 0 3,602 (316 ) Real estate mortgage - commercial 1,641 0 0 1,641 (257 ) Consumer 81 0 0 81 (35 ) Total $ 5,950 $ 0 $ 0 $ 5,950 $  (1,029 ) Other real estate owned and repossessed $ 14,162 $ 0 $ 0 $ 14,162 $ 25 December 31, 2015 Assets: Impaired loans: Commercial, financial, & agricultural $ 272 $ 0 $ 0 $ 272 $ (920 ) Real estate construction - residential 0 0 0 0 0 Real estate construction - commercial 87 0 0 87 (10 ) Real estate mortgage - residential 3,336 0 0 3,336 (567 ) Real estate mortgage - commercial 369 0 0 369 (322 ) Consumer 125 0 0 125 (66 ) Total $ 4,189 $ 0 $ 0 $ 4,189 $ (1,885 ) Other real estate owned and repossessed $ 15,992 $ 0 $ 0 $ 15,992 $ 118 * Total gains (losses) reported for other real estate owned and repossessed assets includes charge-offs, valuation write-downs, and net losses taken during the periods reported.

Fair Value of Financial Instr43

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2016
Financial Instruments, Owned, at Fair Value [Abstract]
Schedule of summary of the carrying amounts and fair values of financial instruments	December 31, 2016 December 31, 2016 Quoted Prices Other Net (in thousands) Carrying amount Fair value Assets: Cash and due from banks $ 25,589 $ 25,589 $ 25,589 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 1,406 1,406 1,406 0 0 Investment in available-for-sale securities 214,512 214,512 0 214,512 0 Loans, net 964,143 959,929 0 0 959,929 Investment in FHLB stock 5,149 5,149 0 5,149 0 Mortgage servicing rights 2,584 2,584 0 0 2,584 Cash surrender value - life insurance 2,409 2,409 0 2,409 0 Accrued interest receivable 5,183 5,183 5,183 0 0 $ 1,220,975 $ 1,216,761 $ 32,178 $ 222,070 $ 962,513 Liabilities: Deposits: Non-interest bearing demand $ 235,975 $ 235,975 $ 235,975 $ 0 $ 0 Savings, interest checking and money market 468,731 468,731 468,731 0 0 Time deposits 305,960 304,334 0 0 304,334 Federal funds purchased and securities sold under agreements to repurchase 31,015 31,015 31,015 0 0 Subordinated notes 49,486 33,712 0 33,712 0 Other borrowings 93,392 93,209 0 93,209 0 Accrued interest payable 498 498 498 0 0 $  1,185,057 $  1,167,474 $  736,219 $  126,921 $  304,334 December 31, 2015 December 31, 2015 Quoted Prices Other Net (in thousands) Carrying amount Fair value Assets: Cash and due from banks $ 20,484 $ 20,484 $ 20,484 $ 0 $ 0 Federal funds sold and overnight interest-bearing deposits 7,893 7,893 7,893 0 0 Investment in available-for-sale securities 235,054 235,054 0 235,054 0 Loans, net 856,476 854,775 0 0 854,775 Investment in FHLB stock 3,390 3,390 0 3,390 0 Mortgage servicing rights 2,847 2,847 0 0 2,847 Cash surrender value - life insurance 2,348 2,348 0 2,348 0 Accrued interest receivable 4,853 4,853 4,853 0 0 $ 1,133,345 $ 1,131,644 $ 33,230 $ 240,792 $ 857,622 Liabilities: Deposits: Non-interest bearing demand $ 208,035 $ 208,035 $ 208,035 $ 0 $ 0 Savings, interest checking and money market 441,080 441,080 441,080 0 0 Time deposits 298,082 298,323 0 0 298,323 Federal funds purchased and securities sold under agreements to repurchase 56,834 56,834 56,834 0 0 Subordinated notes 49,486 40,821 0 40,821 0 Federal Home Loan Bank advances 50,000 52,340 0 52,340 0 Accrued interest payable 382 382 382 0 0 $  1,103,899 $  1,097,815 $  706,331 $  93,161 $  298,323

Repurchase Reserve Liability (T

Repurchase Reserve Liability (Tables)	12 Months Ended
	Dec. 31, 2016
Repurchase Reserve Liability [Abstract]
Schedule of repurchase reserve liability	(in thousands) 2016 2015 2014 Balance at beginning of year $ 160 $ 160 $ 160 Provision for repurchase liability 2 40 0 Reimbursement of expenses (2 ) (40 ) 0 Balance at end of year $ 160 $ 160 $ 160

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of contractual amount of off-balance-sheet financial instruments	(in thousands) 2016 2015 Commitments to extend credit $ 253,375 $ 161,306 Commitments to originate residential first and second mortgage loans 2,626 3,175 Standby letters of credit 2,745 1,466 Total $ 258,746 $ 165,947

Condensed Financial Informati46

Condensed Financial Information of the Parent Company Only (Tables)	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of the Parent Company Only
Schedule of Condensed Balance Sheets	Condensed Balance Sheets December 31, (in thousands) 2016 2015 Assets Cash and due from bank subsidiaries $ 3,945 $ 4,971 Investment in equity securities 1,486 1,486 Investment in subsidiaries 139,686 134,099 Deferred tax asset 2,558 2,116 Other assets 23 7 Total assets $ 147,698 $ 142,679 Liabilities and Stockholders’ Equity Subordinated notes $ 49,486 $ 49,486 Other liabilities 7,195 5,907 Stockholders’ equity 91,017 87,286 Total liabilities and stockholders’ equity $ 147,698 $ 142,679
Schedule of Condensed Statements of Income	Condensed Statements of Income For the Years Ended December 31, 2016 2015 2014 Income Interest and dividends received from subsidiaries $ 46 $ 1,039 $ 2,538 Total income 46 1,039 2,538 Expenses Interest on subordinated notes 1,494 1,293 1,264 Other 2,039 2,138 1,730 Total expenses 3,533 3,431 2,994 Income before income tax benefit and equity in undistributed income of subsidiaries (3,487 ) (2,392 ) (456 ) Income tax benefit 1,337 1,065 1,100 Equity in undistributed income of subsidiaries 9,432 9,926 7,010 Net income $ 7,282 $ 8,599 $ 7,654
Schedule of Condensed Statements of Cash Flows	Condensed Statements of Cash Flows For the Years Ended December 31, (in thousands) 2016 2015 2014 Cash flows from operating activities: Net income $ 7,282 $ 8,599 $ 7,654 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (9,432 ) (9,926 ) (7,010 ) Stock based compensation expense 17 10 20 Increase in deferred tax asset (442 ) (127 ) (1,415 ) Other, net 769 732 1,942 Net cash (used) provided by operating activities $ (1,806 ) $ (712 ) $ 1,191 Cash flows from investing activities: Investment in subsidiary $ 2,500 $ 5,750 $ 400 Net cash provided by investing activities $ 2,500 $ 5,750 $ 400 Cash flows from financing activities: Cash dividends paid - common stock $ (1,097 ) $ (1,058 ) $ (1,017 ) Purchase of treasury stock (623 ) (33 ) 0 Net cash used in financing activities $ (1,720 ) $ (1,091 ) $ (1,017 ) Net (decrease) increase in cash and due from banks (1,026 ) 3,947 574 Cash and due from banks at beginning of year 4,971 1,024 450 Cash and due from banks at end of year $ 3,945 $ 4,971 $ 1,024

Quarterly Financial Informati47

Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information (Unaudited)
Schedule of quarterly financial data (unaudited)	(In thousands except per share data) First Second Third Fourth Year Year Ended December 31, 2016 Interest income $  11,176 $  11,350 $  11,607 $  11,877 $  46,010 Interest expense 1,328 1,379 1,459 1,497 5,663 Net interest income 9,848 9,971 10,148 10,380 40,347 Provision for loan losses 250 425 300 450 1,425 Noninterest income 2,448 1,949 2,125 2,395 8,917 Noninterest expense 9,083 9,353 9,086 9,285 36,807 Income tax expense 965 730 1,003 1,052 3,750 Net income $ 1,998 $ 1,412 $ 1,884 $ 1,988 $ 7,282 Net income per share: Basic earnings per share $ 0.35 $ 0.25 $ 0.33 $ 0.35 $ 1.29 Diluted earnings per share 0.35 0.25 0.33 0.35 1.29 Year Ended December 31, 2015 Interest income $ 11,198 $ 11,214 $ 11,829 $ 11,515 $ 45,756 Interest expense 1,220 1,230 1,271 1,278 4,999 Net interest income 9,978 9,984 10,558 10,237 40,757 Provision for loan losses 0 250 0 0 250 Noninterest income 1,987 2,461 2,337 2,381 9,166 Noninterest expense 8,708 9,267 8,978 9,541 36,494 Income tax expense 1,119 1,001 1,377 1,083 4,580 Net income $ 2,138 $ 1,927 $ 2,540 $ 1,994 $ 8,599 Net income per share: Basic earnings per share $ 0.38 $ 0.34 $ 0.45 $ 0.35 $ 1.52 Diluted earnings per share 0.38 0.34 0.45 0.35 1.52

Summary of Significant Accoun48

Summary of Significant Accounting Policies (Detail Textuals) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary Of Significant Accounting Policies [Line Items]
Mortgage loans held for sale	$ 162,000	$ 1,200,000
Depreciation methods	Straight line and accelerated methods
Sustained period of repayment performance for non-accrual TDRs	6 months
Period of employees highest compensation before retirement	10 years
Buildings and improvements
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	5 to 40 years
Furniture and equipment
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	3 to 15 years
Federal Home Loan Bank of Des Moines
Summary Of Significant Accounting Policies [Line Items]
Investment in capital stock of the Federal Home Loan Bank of total assets	0.12%
Investment in capital stock of Federal Home Loan Bank required percentage of advances	4.00%

Loans and Allowance for Loan 49

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 974,029	$ 865,080
Commercial, financial, and agricultural
Loans and Leases Receivable Disclosure [Line Items]
Total loans	182,881	149,091
Residential real estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Total loans	18,907	16,895
Residential real estate | Mortgages
Loans and Leases Receivable Disclosure [Line Items]
Total loans	259,900	256,086
Real estate construction - commercial | Construction
Loans and Leases Receivable Disclosure [Line Items]
Total loans	55,653	33,943
Real estate construction - commercial | Mortgages
Loans and Leases Receivable Disclosure [Line Items]
Total loans	426,470	385,869
Installment and other consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 30,218	$ 23,196

Loans and Allowance for Loan 50

Loans and Allowance for Loan Losses (Details 1) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance at December 31, 2015	$ 3,376
New loans	64
Amounts collected	(167)
Balance at December 31, 2016	$ 3,273

Loans and Allowance for Loan 51

Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of the allowance for loan losses
Balance at beginning of period				$ 8,604				$ 9,099	$ 8,604	$ 9,099	$ 13,719
Additions:
Provision for loan losses	$ 450	$ 300	$ 425	250	$ 0	$ 0	$ 250	0	1,425	250	0
Deductions:
Loans charged off									1,290	2,190	5,828
Less recoveries on loans									(1,147)	(1,445)	(1,208)
Net loans charged off									143	745	4,620
Balance at end of period	9,886				8,604				9,886	8,604	9,099
Commercial, financial, and agricultural
Summary of the allowance for loan losses
Balance at beginning of period				2,153				1,779	2,153	1,779	2,374
Additions:
Provision for loan losses									690	833	371
Deductions:
Loans charged off									389	1,131	1,285
Less recoveries on loans									(299)	(672)	(319)
Net loans charged off									90	459	966
Balance at end of period	2,753				2,153				2,753	2,153	1,779
Residential real estate | Construction
Summary of the allowance for loan losses
Balance at beginning of period				59				171	59	171	931
Additions:
Provision for loan losses									49	(434)	(592)
Deductions:
Loans charged off									0	0	349
Less recoveries on loans									0	(322)	(181)
Net loans charged off									0	(322)	168
Balance at end of period	108				59				108	59	171
Residential real estate | Mortgages
Summary of the allowance for loan losses
Balance at beginning of period				2,439				2,527	2,439	2,527	2,959
Additions:
Provision for loan losses									381	153	(226)
Deductions:
Loans charged off									495	379	408
Less recoveries on loans									(60)	(138)	(202)
Net loans charged off									435	241	206
Balance at end of period	2,385				2,439				2,385	2,439	2,527
Real estate construction - commercial | Construction
Summary of the allowance for loan losses
Balance at beginning of period				644				466	644	466	631
Additions:
Provision for loan losses									(732)	193	326
Deductions:
Loans charged off									1	15	491
Less recoveries on loans									(502)	0	0
Net loans charged off									(501)	15	491
Balance at end of period	413				644				413	644	466
Real estate construction - commercial | Mortgages
Summary of the allowance for loan losses
Balance at beginning of period				2,935				3,846	2,935	3,846	6,523
Additions:
Provision for loan losses									865	(713)	(107)
Deductions:
Loans charged off									147	363	2,890
Less recoveries on loans									(140)	(165)	(320)
Net loans charged off									7	198	2,570
Balance at end of period	3,793				2,935				3,793	2,935	3,846
Installment and other consumer
Summary of the allowance for loan losses
Balance at beginning of period				273				270	273	270	294
Additions:
Provision for loan losses									113	157	195
Deductions:
Loans charged off									258	302	405
Less recoveries on loans									(146)	(148)	(186)
Net loans charged off									112	154	219
Balance at end of period	274				273				274	273	270
Unallocated
Summary of the allowance for loan losses
Balance at beginning of period				$ 101				$ 40	101	40	7
Additions:
Provision for loan losses									59	61	33
Deductions:
Loans charged off									0	0	0
Less recoveries on loans									0	0	0
Net loans charged off									0	0	0
Balance at end of period	$ 160				$ 101				$ 160	$ 101	$ 40

Loans and Allowance for Loan 52

Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for loan losses:
Individually evaluated for impairment	$ 1,080	$ 1,540
Collectively evaluated for impairment	8,806	7,064
Total	9,886	8,604	$ 9,099	$ 13,719
Loans outstanding:
Individually evaluated for impairment	9,144	10,268
Collectively evaluated for impairment	964,885	854,812
Total	974,029	865,080
Commercial, financial, and agricultural
Allowance for loan losses:
Individually evaluated for impairment	469	285
Collectively evaluated for impairment	2,284	1,868
Total	2,753	2,153	1,779	2,374
Loans outstanding:
Individually evaluated for impairment	1,617	1,005
Collectively evaluated for impairment	181,264	148,086
Total	182,881	149,091
Residential real estate | Construction
Allowance for loan losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	108	59
Total	108	59	171	931
Loans outstanding:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	18,907	16,895
Total	18,907	16,895
Residential real estate | Mortgages
Allowance for loan losses:
Individually evaluated for impairment	319	955
Collectively evaluated for impairment	2,066	1,484
Total	2,385	2,439	2,527	2,959
Loans outstanding:
Individually evaluated for impairment	5,471	5,936
Collectively evaluated for impairment	254,429	250,150
Total	259,900	256,086
Real estate construction - commercial | Construction
Allowance for loan losses:
Individually evaluated for impairment	7	15
Collectively evaluated for impairment	406	629
Total	413	644	466	631
Loans outstanding:
Individually evaluated for impairment	49	102
Collectively evaluated for impairment	55,604	33,841
Total	55,653	33,943
Real estate construction - commercial | Mortgages
Allowance for loan losses:
Individually evaluated for impairment	277	266
Collectively evaluated for impairment	3,516	2,669
Total	3,793	2,935	3,846	6,523
Loans outstanding:
Individually evaluated for impairment	1,918	3,081
Collectively evaluated for impairment	424,552	382,788
Total	426,470	385,869
Installment and other consumer
Allowance for loan losses:
Individually evaluated for impairment	8	19
Collectively evaluated for impairment	266	254
Total	274	273	270	294
Loans outstanding:
Individually evaluated for impairment	89	144
Collectively evaluated for impairment	30,129	23,052
Total	30,218	23,196
Unallocated
Allowance for loan losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	160	101
Total	160	101	$ 40	$ 7
Loans outstanding:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	0	0
Total	$ 0	$ 0

Loans and Allowance for Loan 53

Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loan and Lease Receivables, Impaired [Abstract]
Non-accrual loans	$ 3,429	$ 4,418
Performing TDRs	5,715	5,850
Total impaired loans	$ 9,144	$ 10,268

Loans and Allowance for Loan 54

Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	$ 2,114	$ 4,539
Unpaid Principal Balance, With no related allowance recorded	2,263	4,734
Recorded Investment, With an allowance recorded	7,030	5,729
Unpaid Principal Balance, With an allowance recorded	7,228	6,073
Specific Reserves, With an allowance recorded	1,080	1,540
Total impaired loans, Recorded Investment	9,144	10,268
Total impaired loans, Unpaid Principal Balance	9,491	10,807
Commercial, financial, and agricultural
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	564	448
Unpaid Principal Balance, With no related allowance recorded	706	450
Recorded Investment, With an allowance recorded	1,053	557
Unpaid Principal Balance, With an allowance recorded	1,078	572
Specific Reserves, With an allowance recorded	469	285
Real estate - residential
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded	1,550	1,645
Unpaid Principal Balance, With no related allowance recorded	1,557	1,712
Recorded Investment, With an allowance recorded	3,921	4,291
Unpaid Principal Balance, With an allowance recorded	3,990	4,320
Specific Reserves, With an allowance recorded	319	955
Real estate - commercial
Financing Receivable, Impaired [Line Items]
Recorded Investment, With no related allowance recorded		2,446
Unpaid Principal Balance, With no related allowance recorded		2,572
Recorded Investment, With an allowance recorded	1,918	635
Unpaid Principal Balance, With an allowance recorded	1,988	884
Specific Reserves, With an allowance recorded	277	266
Real estate - commercial | Construction
Financing Receivable, Impaired [Line Items]
Recorded Investment, With an allowance recorded	49	102
Unpaid Principal Balance, With an allowance recorded	56	115
Specific Reserves, With an allowance recorded	7	15
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment, With an allowance recorded	89	144
Unpaid Principal Balance, With an allowance recorded	116	182
Specific Reserves, With an allowance recorded	$ 8	$ 19

Loans and Allowance for Loan 55

Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Average Recorded Investment
With no related allowance recorded	$ 2,735	$ 12,097
With an allowance recorded	6,454	7,377
Total impaired loans	9,189	19,474
Interest Recognized For the Period Ended
With no related allowance recorded	65	196
With an allowance recorded	220	132
Total impaired loans	285	328
Commercial, financial, and agricultural
Average Recorded Investment
With no related allowance recorded	669	2,949
With an allowance recorded	899	1,356
Interest Recognized For the Period Ended
With no related allowance recorded	13	39
With an allowance recorded	23	22
Residential real estate
Average Recorded Investment
With no related allowance recorded	1,713	2,331
With an allowance recorded	3,553	4,625
Interest Recognized For the Period Ended
With no related allowance recorded	52	37
With an allowance recorded	114	110
Residential real estate | Construction
Average Recorded Investment
With no related allowance recorded	0	536
With an allowance recorded	0	0
Real estate - commercial
Average Recorded Investment
With no related allowance recorded	353	5,169
With an allowance recorded	1,842	1,161
Interest Recognized For the Period Ended
With no related allowance recorded	0	119
With an allowance recorded	83	0
Real estate - commercial | Construction
Average Recorded Investment
With no related allowance recorded	0	1,105
With an allowance recorded	51	52
Interest Recognized For the Period Ended
With no related allowance recorded	0	0
With an allowance recorded	0	0
Consumer
Average Recorded Investment
With no related allowance recorded	0	7
With an allowance recorded	109	183
Interest Recognized For the Period Ended
With no related allowance recorded	0	1
With an allowance recorded	$ 0	$ 0

Loans and Allowance for Loan 56

Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Aging information for the Company's past due and non-accrual loans
90 Days Past Due And Still Accruing	$ 65	$ 6
Non-Accrual	3,429	4,418
Loans	974,029	865,080
Current or Less Than 30 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	965,831	857,045
30 - 89 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	4,704	3,611
Commercial, financial, and agricultural
Aging information for the Company's past due and non-accrual loans
90 Days Past Due And Still Accruing	0	1
Non-Accrual	982	308
Loans	182,881	149,091
Commercial, financial, and agricultural | Current or Less Than 30 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	181,609	148,597
Commercial, financial, and agricultural | 30 - 89 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	290	185
Residential real estate | Construction
Aging information for the Company's past due and non-accrual loans
90 Days Past Due And Still Accruing	0	0
Non-Accrual	0	0
Loans	18,907	16,895
Residential real estate | Construction | Current or Less Than 30 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	18,681	16,895
Residential real estate | Construction | 30 - 89 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	226	0
Residential real estate | Mortgages
Aging information for the Company's past due and non-accrual loans
90 Days Past Due And Still Accruing	54	0
Non-Accrual	1,888	2,322
Loans	259,900	256,086
Residential real estate | Mortgages | Current or Less Than 30 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	254,758	251,253
Residential real estate | Mortgages | 30 - 89 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	3,200	2,511
Real estate construction - commercial | Construction
Aging information for the Company's past due and non-accrual loans
90 Days Past Due And Still Accruing	0	0
Non-Accrual	50	102
Loans	55,653	33,943
Real estate construction - commercial | Construction | Current or Less Than 30 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	55,603	33,776
Real estate construction - commercial | Construction | 30 - 89 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	0	65
Real estate construction - commercial | Mortgages
Aging information for the Company's past due and non-accrual loans
90 Days Past Due And Still Accruing	0	0
Non-Accrual	420	1,542
Loans	426,470	385,869
Real estate construction - commercial | Mortgages | Current or Less Than 30 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	425,260	383,684
Real estate construction - commercial | Mortgages | 30 - 89 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	790	643
Installment and other consumer
Aging information for the Company's past due and non-accrual loans
90 Days Past Due And Still Accruing	11	5
Non-Accrual	89	144
Loans	30,218	23,196
Installment and other consumer | Current or Less Than 30 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	29,920	22,840
Installment and other consumer | 30 - 89 Days Past Due
Aging information for the Company's past due and non-accrual loans
Financing receivable, recorded investment, past due	$ 198	$ 207

Loans and Allowance for Loan 57

Loans and Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	$ 974,029	$ 865,080
Watch
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	73,261	57,906
Substandard
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	4,047	5,716
Performing TDRs
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	5,715	5,850
Non-accrual
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	3,429	4,418
Total
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	86,452	73,890
Commercial, financial, and agricultural
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	182,881	149,091
Commercial, financial, and agricultural | Watch
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	10,295	8,663
Commercial, financial, and agricultural | Substandard
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	798	421
Commercial, financial, and agricultural | Performing TDRs
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	635	697
Commercial, financial, and agricultural | Non-accrual
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	982	308
Commercial, financial, and agricultural | Total
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	12,710	10,089
Residential real estate | Construction
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	18,907	16,895
Residential real estate | Construction | Watch
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	665	1,267
Residential real estate | Construction | Substandard
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	640	0
Residential real estate | Construction | Performing TDRs
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	0	0
Residential real estate | Construction | Non-accrual
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	0	0
Residential real estate | Construction | Total
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	1,305	1,267
Residential real estate | Mortgages
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	259,900	256,086
Residential real estate | Mortgages | Watch
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	16,577	22,191
Residential real estate | Mortgages | Substandard
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	2,159	3,737
Residential real estate | Mortgages | Performing TDRs
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	3,582	3,615
Residential real estate | Mortgages | Non-accrual
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	1,888	2,322
Residential real estate | Mortgages | Total
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	24,206	31,865
Real estate construction - commercial | Construction
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	55,653	33,943
Real estate construction - commercial | Construction | Watch
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	1,113	1,296
Real estate construction - commercial | Construction | Substandard
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	0	37
Real estate construction - commercial | Construction | Performing TDRs
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	0	0
Real estate construction - commercial | Construction | Non-accrual
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	50	102
Real estate construction - commercial | Construction | Total
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	1,163	1,435
Real estate construction - commercial | Mortgages
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	426,470	385,869
Real estate construction - commercial | Mortgages | Watch
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	44,611	24,303
Real estate construction - commercial | Mortgages | Substandard
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	426	1,485
Real estate construction - commercial | Mortgages | Performing TDRs
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	1,498	1,538
Real estate construction - commercial | Mortgages | Non-accrual
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	420	1,542
Real estate construction - commercial | Mortgages | Total
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	46,955	28,868
Installment and other consumer
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	30,218	23,196
Installment and other consumer | Watch
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	0	186
Installment and other consumer | Substandard
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	24	36
Installment and other consumer | Performing TDRs
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	0	0
Installment and other consumer | Non-accrual
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	89	144
Installment and other consumer | Total
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment
Financing receivable	$ 113	$ 366

Loans and Allowance for Loan 58

Loans and Allowance for Loan Losses (Details 9) $ in Thousands		12 Months Ended
		Dec. 31, 2016USD ($)Contract	Dec. 31, 2015USD ($)Contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	[1]	7	7
Pre- Modification	[1]	$ 536	$ 2,042
Post- Modification	[1]	$ 536	$ 1,852
Commercial, financial, and agricultural
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	[1]	0	2
Pre- Modification	[1]	$ 0	$ 250
Post- Modification	[1]	$ 0	$ 229
Residential real estate | Mortgages
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	[1]	7	1
Pre- Modification	[1]	$ 536	$ 519
Post- Modification	[1]	$ 536	$ 374
Real estate - commercial | Mortgages
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	[1]	0	4
Pre- Modification	[1]	$ 0	$ 1,273
Post- Modification	[1]	$ 0	$ 1,249
[1]	The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off, or foreclosed upon during the period ended are not reported.

Loans and Allowance for Loan 59

Loans and Allowance for Loan Losses (Detail Textuals) $ in Thousands		12 Months Ended
		Dec. 31, 2016USD ($)ContractLoans	Dec. 31, 2015USD ($)Contract
Financing Receivable, Impaired [Line Items]
Carrying amount of loans pledged as collateral to the Federal Home Loan Bank		$ 491,100
Fair value amount of loans pledged as collateral to the Federal Home Loan Bank		403,600
Impaired loans individually evaluated for impairment		9,144	$ 10,268
Impaired loans were evaluated based on the fair value of the loan's collateral		4,500	6,400
Specific allowance related to impaired loans		1,080	1,540
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		$ 2,114	$ 4,539
Impaired loans required no reserve allocation, percentage		23.00%	44.00%
Interest income recognized on impaired loans		$ 285	$ 328
Troubled debt restructurings		6,300	6,400
Amount of specific reserves related to TDRs which were allocated to the allowance for loan losses		$ 4,100	$ 1,000
Number of contracts modified | Contract	[1]	7	7
Number of contracts defaulted within twelve months of its modification | Contract		3	0
Number of loan charged off | Loans		2
Number of loan settled through insurance | Loans		1
Consumer
Financing Receivable, Impaired [Line Items]
Impaired loans individually evaluated for impairment		$ 89	$ 144
Performing TDRs
Financing Receivable, Impaired [Line Items]
Troubled debt restructurings		5,700	5,900
Nonperforming TDRs
Financing Receivable, Impaired [Line Items]
Troubled debt restructurings		$ 619	$ 527
[1]	The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off, or foreclosed upon during the period ended are not reported.

Real Estate and Other Assets 60

Real Estate and Other Assets Acquired in Settlement of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary of real estate and other assets acquired in settlement of loans
Repossessed assets	$ 16	$ 0
Total	17,291	19,225	$ 15,140
Less valuation allowance for other real estate owned	(3,129)	(3,233)	$ (3,255)	$ (4,675)
Total other real estate and repossessed assets	14,162	15,992
Commercial
Summary of real estate and other assets acquired in settlement of loans
Real estate acquired through foreclosure	809	1,445
Real estate construction - commercial
Summary of real estate and other assets acquired in settlement of loans
Real estate acquired through foreclosure	12,380	12,380
Real estate mortgage - residential
Summary of real estate and other assets acquired in settlement of loans
Real estate acquired through foreclosure	647	477
Real estate mortgage - commercial
Summary of real estate and other assets acquired in settlement of loans
Real estate acquired through foreclosure	$ 3,439	$ 4,923

Real Estate and Other Assets 61

Real Estate and Other Assets Acquired in Settlement of Loans (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of real estate acquired in settlement of loans
Balance at beginning of period	$ 19,225	$ 15,140
Additions	2,233	5,804
Proceeds from sales	(4,057)	(1,836)	$ (4,560)
Charge-offs against the valuation allowance for other real estate owned	(317)	(39)
Net gain on sales	207	156
Total other real estate and repossessed assets	17,291	19,225	$ 15,140
Less valuation allowance for other real estate owned	(3,129)
Balance at end of period	$ 14,162	$ 15,992

Real Estate and Other Assets 62

Real Estate and Other Assets Acquired in Settlement of Loans (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of activity in valuation allowance for other real estate owned in settlement of loans
Balance, beginning of year	$ 3,233	$ 3,255	$ 4,675
Provision for other real estate owned	213	17	585
Charge-offs	(317)	(39)	(2,005)
Balance, end of year	$ 3,129	$ 3,233	$ 3,255

Real Estate and Other Assets 63

Real Estate and Other Assets Acquired in Settlement of Loans (Detail Textuals) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Other Real Estate [Abstract]
Consumer mortgage loans in process of foreclosure	$ 162,000	$ 390,000

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized cost and fair value of debt securities
Amortized Cost	$ 217,635	$ 236,008
Gross Unrealized Gains	261	1,060
Gross Unrealized Losses	(3,384)	(2,014)
Fair value	214,512	235,054
U.S. government and federal agency obligations
Amortized cost and fair value of debt securities
Amortized Cost	13,667
Gross Unrealized Gains	0
Gross Unrealized Losses	(303)
Fair value	13,364
Government sponsored enterprises
Amortized cost and fair value of debt securities
Amortized Cost	32,786	73,605
Gross Unrealized Gains	2	127
Gross Unrealized Losses	(329)	(235)
Fair value	32,459	73,497
Obligations of states and political subdivisions
Amortized cost and fair value of debt securities
Amortized Cost	42,666	32,224
Gross Unrealized Gains	123	493
Gross Unrealized Losses	(757)	(11)
Fair value	42,032	32,706
Mortgage-backed securities
Amortized cost and fair value of debt securities
Amortized Cost	128,516	130,179
Gross Unrealized Gains	136	440
Gross Unrealized Losses	(1,995)	(1,768)
Fair value	126,657	128,851
Mortgage-backed securities | Residential - government agencies
Amortized cost and fair value of debt securities
Amortized Cost	127,527	129,193
Gross Unrealized Gains	124	432
Gross Unrealized Losses	(1,995)	(1,768)
Fair value	125,656	127,857
Mortgage-backed securities | Commercial - government agencies
Amortized cost and fair value of debt securities
Amortized Cost	989	986
Gross Unrealized Gains	12	8
Gross Unrealized Losses	0	0
Fair value	$ 1,001	$ 994

Investment Securities (Details

Investment Securities (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized Cost
Due in one year or less	$ 4,725
Due after one year through five years	48,405
Due after five year through ten years	29,363
Due after ten years	6,626
Total	89,119
Asset-backed securities	128,516
Amortized Cost	217,635	$ 236,008
Fair Value
Due in one year or less	4,726
Due after one year through five years	47,973
Due after five year through ten years	28,626
Due after ten years	6,530
Total	87,855
Asset-backed securities	126,657
Fair value	$ 214,512	$ 235,054

Investment Securities (Detail66

Investment Securities (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value
Less than 12 months	$ 184,887	$ 102,205
12 months or more	3,742	45,296
Total	188,629	147,501
Unrealized Losses
Less than 12 months	(3,237)	(848)
12 months or more	(147)	(1,166)
Total	(3,384)	(2,014)
U.S. government and federal agency obligations
Fair Value
Less than 12 months	13,365
12 months or more	0
Total	13,365
Unrealized Losses
Less than 12 months	(303)
12 months or more	0
Total	(303)
Government sponsored enterprises
Fair Value
Less than 12 months	29,432	43,539
12 months or more	0	1,002
Total	29,432	44,541
Unrealized Losses
Less than 12 months	(329)	(222)
12 months or more	0	(13)
Total	(329)	(235)
Obligations of states and political subdivisions
Fair Value
Less than 12 months	32,318	2,571
12 months or more	0	718
Total	32,318	3,289
Unrealized Losses
Less than 12 months	(757)	(6)
12 months or more	0	(5)
Total	(757)	(11)
Mortgage-backed securities | Residential - government agencies
Fair Value
Less than 12 months	109,772	56,095
12 months or more	3,742	43,576
Total	113,514	99,671
Unrealized Losses
Less than 12 months	(1,848)	(620)
12 months or more	(147)	(1,148)
Total	$ (1,995)	$ (1,768)

Investment Securities (Detail67

Investment Securities (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]
Gains realized on sales	$ 623	$ 8	$ 86
Losses realized on sales	(21)	0	(66)
Other-than-temporary impairment recognized	0	0	0
Investment securities gains	$ 602	$ 8	$ 20

Investment Securities (Detail T

Investment Securities (Detail Textuals) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Security	Dec. 31, 2015USD ($)Security
Investments Debt And Equity Securities [Abstract]
Available for sale securities, restricted	$ 9,800	$ 8,000
Available for sale securities, pledged	$ 167,600	$ 182,700
Number of securities consisted in portfolio | Security	298	316
Number of securities in loss position | Security	209	111
Unrealized loss included in other comprehensive	$ 188,600	$ 147,500
12 months or more	3,742	45,296
Gross Unrealized Losses	$ 3,400	$ 2,000

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Summary of premises and equipment
Total, premises and equipment	$ 59,353	$ 58,753
Less accumulated depreciation	23,831	22,364
Premises and equipment, net	35,522	36,389
Land and land improvements
Summary of premises and equipment
Total, premises and equipment	9,952	10,165
Buildings and improvements
Summary of premises and equipment
Total, premises and equipment	35,657	35,588
Furniture and equipment
Summary of premises and equipment
Total, premises and equipment	13,473	12,906
Construction in progress
Summary of premises and equipment
Total, premises and equipment	$ 271	$ 94

Premises and Equipment (Detai70

Premises and Equipment (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Depreciation expense
Depreciation expense	$ 1,782	$ 1,810	$ 1,758

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Changes in mortgage servicing rights
Balance at beginning of year		$ 2,847
Changes in fair value:
Balance at end of year		2,584	$ 2,847
Mortgage servicing rights (MSRs)
Changes in mortgage servicing rights
Balance at beginning of year		2,847	2,762	$ 3,036
Originated mortgage servicing rights		266	386	302
Changes in fair value:
Due to change in model inputs and assumptions	[1]	108	372	66
Other changes in fair value	[2]	(637)	(673)	(642)
Balance at end of year		$ 2,584	$ 2,847	$ 2,762
[1]	The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates.
[2]	Other changes in fair value reflect changes due to customer payments and passage of time.

Intangible Assets (Details 1)

Intangible Assets (Details 1) - Mortgage servicing rights (MSRs)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Assumptions used in estimating the fair value of mortgage service rights
Weighted-Average Constant Prepayment Rate	10.68%	9.58%
Weighted-Average Note Rate	3.85%	3.92%
Weighted-Average Discount Rate	9.69%	9.16%
Weighted-Average Expected Life (in years)	5 years 7 months 6 days	5 years 10 months 24 days

Intangible Assets (Detail Textu

Intangible Assets (Detail Textuals) - Mortgage servicing rights (MSRs) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Mortgage loans serviced for others	$ 294,400,000	$ 312,100,000
Mortgage loan servicing fees reported as other non-interest income	$ 854,000	$ 873,000	$ 895,000

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Due within:
One year	$ 217,970	$ 201,418
Two years	50,330	56,026
Three years	24,807	29,030
Four years	6,363	6,022
Five years	6,490	5,586
Thereafter	0	0
Total	$ 305,960	$ 298,082

Deposits (Details 1)

Deposits (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Due within:
Three months or less	$ 50,270	$ 39,122
Over three months through six months	34,500	30,704
Over six months through twelve months	40,249	30,432
Over twelve months	27,237	31,986
Total	$ 152,256	$ 132,244

Deposits (Detail Textuals)

Deposits (Detail Textuals) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deposits
Time deposits $250000 or more	$ 72,200,000	$ 56,400,000
Minimum cash required	1,600,000	1,600,000
Average compensating balances	$ 570,000	$ 865,000

Borrowings (Details)

Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Borrowings
Average Balance Outstanding	$ 36,539	$ 30,925
Maximum Outstanding at any Month End	57,702	59,401
Balance	$ 31,015	$ 56,834
Federal funds purchased
Borrowings
Year End Weighted Rate (as a percent)	0.95%	0.70%
Average Weighted Rate (as a percent)	0.65%	0.41%
Average Balance Outstanding	$ 346	$ 659
Maximum Outstanding at any Month End	992	937
Balance	$ 992	$ 0
Short-term repurchase agreements
Borrowings
Year End Weighted Rate (as a percent)	0.20%	0.10%
Average Weighted Rate (as a percent)	0.17%	0.17%
Average Balance Outstanding	$ 36,193	$ 30,266
Maximum Outstanding at any Month End	56,710	58,464
Balance	$ 30,023	$ 56,834

Borrowings (Details 1)

Borrowings (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Borrowings
Year End Balance - Total Bank	$ 93,392	$ 50,000
Year End Balance - Total Company	49,486	49,486
Bank
Borrowings
Year End Balance - Total Bank	92,900
FHLB advances | Bank
Borrowings
2,016	0	8,000
2,017	40,900	5,000
2,018	27,000	22,000
2,019	10,000	4,000
2,020	11,000	$ 11,000
2,021	$ 4,000
2016 (as a percent)		0.67%
2017 (as a percent)	0.90%	1.07%
2018 (as a percent)	1.80%	1.93%
2019 (as a percent)	1.50%	1.79%
2020 (as a percent)	1.95%	1.95%
2021 (as a percent)	1.71%
Other Borrowings
Borrowings
2,017	$ 492	$ 0
2017 (as a percent)	1.05%
Subordinated notes due 2034
Borrowings
Year End Balance - Total Company	$ 25,774	$ 25,774
Year End Weighted Rate (as a percent)	3.69%	3.23%
Subordinated notes due 2035
Borrowings
Year End Balance - Total Company	$ 23,712	$ 23,712
Year End Weighted Rate (as a percent)	2.82%	2.36%

Borrowings (Detail Textuals)

Borrowings (Detail Textuals) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Long-term Federal Home Loan Bank Advances	$ 93,392	$ 50,000
Bank
Short-term Debt [Line Items]
Long-term Federal Home Loan Bank Advances	92,900
Amount of FHLB advances which may be called early	10,000
Maximum additional borrowing amount under agreement with FHLB	221,700
Federal funds purchased
Short-term Debt [Line Items]
Maximum borrowing capacity of federal funds on unsecured basis	39,000
Maximum borrowing capacity of federal funds on secured basis	$ 18,000

Borrowings (Detail Textuals 1)

Borrowings (Detail Textuals 1) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Mar. 17, 2005	Mar. 17, 2004	Dec. 31, 2016	Dec. 31, 2015
Borrowings
Trust preferred securities issued floating rate Trust Preferred Securities (TPS) to a TPS Pool			$ 712
Investment in preferred interests of the trust by a third party during the period			23,000
Subordinated notes			49,486	$ 49,486
Investment in common securities of the trust			$ 1,500
Exchange Statutory Trust II
Borrowings
Trust preferred securities issued floating rate Trust Preferred Securities (TPS) to a TPS Pool	$ 23,000
Floating rate Trust Preferred Securities (TPS) to a TPS Pool, term	30 years
Description of variable rate			three-month LIBOR
Basis spread on variable rate (as a percent)			1.83%
Interest rate at end of period (as a percent)			2.82%
Period of time after issuance in which TPS can be repaid without penalty	5 years
Exchange Statutory Trust I
Borrowings
Trust preferred securities issued floating rate Trust Preferred Securities (TPS) to a TPS Pool		$ 25,000
Description of variable rate			the three-month LIBOR
Basis spread on variable rate (as a percent)			2.70%
Interest rate at end of period (as a percent)			3.69%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal									$ 3,578	$ 3,619	$ 1,105
State									489	496	137
Total current									4,067	4,115	1,242
Deferred:
Federal									(267)	391	2,353
State									(50)	74	447
Total deferred									(317)	465	2,800
Total income tax expense	$ 1,052	$ 1,003	$ 730	$ 965	$ 1,083	$ 1,377	$ 1,001	$ 1,119	$ 3,750	$ 4,580	$ 4,042

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income before provision for income tax expense									$ 11,032	$ 13,179	$ 11,696
Tax at statutory federal income tax rate									3,751	4,481	3,977
Tax-exempt income									(314)	(369)	(348)
State income tax, net of federal tax benefit									290	376	385
Other, net									23	92	28
Total income tax expense	$ 1,052	$ 1,003	$ 730	$ 965	$ 1,083	$ 1,377	$ 1,001	$ 1,119	$ 3,750	$ 4,580	$ 4,042
Tax at statutory federal income tax rate (in percent)									34.00%	34.00%	34.00%
Tax-exempt income (in percent)									(2.85%)	(2.80%)	(2.98%)
State income tax, net of federal tax benefit (in percent)									2.63%	2.85%	3.30%
Other, net (in percent)									0.21%	0.70%	0.24%
Provision for income tax expense (in percent)									33.99%	34.75%	34.56%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Allowance for loan losses	$ 3,756	$ 3,269
Impairment of other real estate owned	1,192	1,226
Goodwill	1,088	1,437
Available-for-sale securities	1,187	363
Nonaccrual loan interest	469	640
Core deposit intangible	422	556
Pension	1,415	1,242
Deferred taxes on pension	1,143	874
Deferred compensation	148	138
Other	402	342
Total deferred tax assets	11,222	10,087
Deferred tax liabilities:
Premises and equipment	765	938
Mortgage servicing rights	968	1,064
Assets held for sale	50	49
Other	6	13
Total deferred tax liabilities	1,789	2,064
Net deferred tax assets	$ 9,433	$ 8,023

Income Taxes (Details Textuals)

Income Taxes (Details Textuals) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Capital losses	$ 219,000	$ 219,000
Valuation reserve against capital loss carry forward deferred tax asset	$ 83,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Unrealized Loss on Securities
Accumulated Other Comprehensive Income (Loss)
Balance at the beginning	[1]	$ (591)	$ 214
Other comprehensive (loss) income, before reclassifications	[1]	(1,566)	(1,291)
Amounts reclassified from accumulated other comprehensive income	[1]	(602)	(8)
Current period other comprehensive (loss) income, before tax	[1]	(2,168)	(1,299)
Deferred tax adjustment	[1]		0
Income tax benefit (expense)	[1]	823	494
Current period other comprehensive (loss) income, net of tax	[1]	(1,345)	(805)
Balance at the end	[1]	(1,936)	(591)	$ 214
Unrecognized Net Pension and Postretirement Costs
Accumulated Other Comprehensive Income (Loss)
Balance at the beginning	[2]	(1,427)	(1,442)
Other comprehensive (loss) income, before reclassifications	[2]	79	144
Amounts reclassified from accumulated other comprehensive income	[2]	(786)	5
Current period other comprehensive (loss) income, before tax	[2]	(707)	149
Deferred tax adjustment	[2]		(77)
Income tax benefit (expense)	[2]	269	(57)
Current period other comprehensive (loss) income, net of tax	[2]	(438)	15
Balance at the end	[2]	(1,865)	(1,427)	(1,442)
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive Income (Loss)
Balance at the beginning		(2,018)	(1,228)
Other comprehensive (loss) income, before reclassifications		(1,487)	(1,147)
Amounts reclassified from accumulated other comprehensive income		(1,388)	(3)
Current period other comprehensive (loss) income, before tax		(2,875)	(1,150)
Deferred tax adjustment			(77)
Income tax benefit (expense)		1,092	437
Current period other comprehensive (loss) income, net of tax		(1,783)	(790)	(459)
Balance at the end		(3,801)	(2,018)	(1,228)
Balance at the beginning		(2,018)
Current period other comprehensive (loss) income, net of tax		(1,783)	(790)	$ (459)
Balance at the end		$ (3,801)	$ (2,018)
[1]	The pre-tax amounts reclassified from accumulated other comprehensive (loss) income are included in gain on sale of investment securities in the consolidated statements of income.
[2]	The pre-tax amounts reclassified from accumulated other comprehensive income are included in the computation of net periodic pension cost. See Note 11.

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of employee benefits charged to operating expenses
Payroll taxes	$ 1,122	$ 1,102	$ 1,081
Medical plans	1,881	1,928	1,974
401(k) match	346	325	310
Pension plan	1,227	1,391	960
Profit-sharing	479	563	201
Other	172	164	122
Total employee benefits	$ 5,227	$ 5,473	$ 4,648

Employee Benefit Plans (Detai87

Employee Benefit Plans (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Change in projected benefit obligation:
Balance, January 1	$ 20,601	$ 19,977
Service cost	1,179	1,325	$ 981
Interest cost	956	838	732
Actuarial (loss) gain	961	(1,084)
Benefits paid	(464)	(455)
Balance, December 31	23,233	20,601	19,977
Change in plan assets:
Fair value, January 1	15,031	14,933
Actual return on plan assets	1,251	(75)
Employer contribution	772	716
Expenses paid	(88)	(88)
Benefits paid	(464)	(455)
Fair value, December 31	16,502	15,031	$ 14,933
Funded status at end of year	(6,732)	(5,570)
Accumulated benefit obligation	$ 18,586	$ 16,550

Employee Benefit Plans (Detai88

Employee Benefit Plans (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Components of net pension cost
Service cost - benefits earned during the year	$ 1,179	$ 1,325	$ 981
Interest costs on projected benefit obligations	956	838	732
Expected return on plan assets	(1,057)	(957)	(872)
Expected administrative expenses	70	40	40
Amortization of prior service cost	79	79	79
Amortization of unrecognized net loss	0	66	0
Net periodic pension expense	$ 1,227	$ 1,391	$ 960

Employee Benefit Plans (Detai89

Employee Benefit Plans (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Prior service costs	$ (285)	$ (364)
Net accumulated actuarial net loss	(2,723)	(1,937)
Accumulated other comprehensive loss	(3,008)	(2,301)
Net periodic benefit cost in excess of cumulative employer contributions	(3,724)	(3,269)
Net amount recognized at December 31, balance sheet	(6,732)	(5,570)
Net gain (loss) arising during period	(786)	5
Prior service cost amortization	79	79
Amortization of net actuarial loss	0	65
Total recognized in other comprehensive income (loss)	(707)	149
Total recognized in net periodic pension cost and other comprehensive income	$ 1,934	$ 1,242

Employee Benefit Plans (Detai90

Employee Benefit Plans (Details 4)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Determination of benefit obligation at year end:
Discount rate	4.40%	4.70%	4.25%
Annual rate of compensation increase	4.00%	3.78%	3.78%
Determination of pension expense for year ended:
Discount rate for the service cost	4.70%	4.25%	5.00%
Annual rate of compensation increase	3.78%	3.78%	3.73%
Expected long-term rate of return on plan assets	7.00%	7.00%	7.00%

Employee Benefit Plans (Detai91

Employee Benefit Plans (Details 5) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Fair Value	$ 16,502	$ 15,031	$ 14,933
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	14,126	13,229
Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	2,376	1,802
Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	0	0
Cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair Value	1,362	1,663
Cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	1,362	1,663
Cash equivalents | Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	0	0
Cash equivalents | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	0	0
Mutual Fund
Defined Benefit Plan Disclosure [Line Items]
Fair Value	12,764	11,566
Mutual Fund | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	12,764	11,566
Mutual Fund | Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	0	0
Mutual Fund | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	0	0
U.S. gov't agency obligations
Defined Benefit Plan Disclosure [Line Items]
Fair Value	2,376	1,802
U.S. gov't agency obligations | Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	0	0
U.S. gov't agency obligations | Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	2,376	1,802
U.S. gov't agency obligations | Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair Value	$ 0	$ 0

Employee Benefit Plans (Detai92

Employee Benefit Plans (Details 6) $ in Thousands	Dec. 31, 2016USD ($)
Future benefit payments expected to be paid
2,017	$ 630
2,018	677
2,019	802
2,020	873
2,021	1,036
2022 to 2026	$ 5,970

Employee Benefit Plans (Detail

Employee Benefit Plans (Detail Textuals) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]
Employer match	3.00%
Defined benefit plan contributions by employer percent	6.00%
Contribution to the defined benefit plan for the current plan year	$ 772,000
Defined benefit plan contributions minimum required contribution	842,000
Estimated prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic cost	$ 79,000
Assumed overall expected long-term rate of return on pension plan assets (in percent)	7.00%	7.00%	7.00%
Annual return on plan assets	8.20%	(0.40%)	8.30%	19.10%	11.40%
Employer contribution	$ 772,000	$ 716,000
Employer contribution by September 2017	1,200,000
Defined benefit obligation expense in 2017	$ 1,400,000

Employee Benefit Plans (Detai94

Employee Benefit Plans (Detail Textuals 1)	12 Months Ended
	Dec. 31, 2016
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Long-term investment target mix for the plan	70.00%
Fixed income
Defined Benefit Plan Disclosure [Line Items]
Long-term investment target mix for the plan	25.00%
Money Market Funds
Defined Benefit Plan Disclosure [Line Items]
Long-term investment target mix for the plan	5.00%

Stock Compensation (Details)

Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of shares
Outstanding, beginning of year (in shares)	65,270	104,400	136,653
Granted (in shares)	0	0	0
Exercised (in shares)	0	0	0
Forfeited (in shares)	(20,812)	(39,130)	(32,253)
Outstanding, end of year (in shares)	44,458	65,270	104,400
Exercisable, end of year (in shares)	43,189	57,487	92,336
Weighted average exercise price
Outstanding, beginning of year (in dollars per share)	$ 20.68	$ 20.73	$ 21.46
Granted (in dollars per share)	0	0	0
Exercised (in dollars per share)	0	0	0
Forfeited (in dollars per share)	21.89	20.82	23.81
Outstanding, end of year (in dollars per share)	20.11	20.68	20.73
Exercisable, end of year (in dollars per share)	$ 20.25	$ 21.39	$ 21.11
Weighted average Contractual Term (in years)
Outstanding at the end of period	11 months 27 days	1 year 4 months 28 days	1 year 11 months 5 days
Exercisable at the end of period	11 months 19 days	1 year 2 months 27 days	1 year 9 months
Aggregate Intrinsic Value
Outstanding, end of year	$ 49,828	$ 0	$ 0
Exercisable, end of year	$ 46,859	$ 0	$ 0

Stock Compensation (Detail Text

Stock Compensation (Detail Textuals) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Grant of options to purchase (in shares)	553,361
Stock dividend (in percent)	4.00%
Stock based compensation expense	$ 17,000	$ 10,000	$ 20,000
Total unrecognized compensation expense related to non-vested stock awards	$ 20,000
Weighted average period is expected to be recognized	4 months 17 days

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic earnings per common share:
Net income available to shareholders	$ 1,988	$ 1,884	$ 1,412	$ 1,998	$ 1,994	$ 2,540	$ 1,927	$ 2,138	$ 7,282	$ 8,599	$ 7,654
Basic earnings per share (in dollars per share)	$ 0.35	$ 0.33	$ 0.25	$ 0.35	$ 0.35	$ 0.45	$ 0.34	$ 0.38	$ 1.29	$ 1.52	$ 1.35
Diluted earnings per common share:
Net income available to shareholders	$ 1,988	$ 1,884	$ 1,412	$ 1,998	$ 1,994	$ 2,540	$ 1,927	$ 2,138	$ 7,282	$ 8,599	$ 7,654
Average shares outstanding (in shares)									5,639,744	5,662,013	5,662,081
Effect of dilutive stock options (in shares)									0	0	0
Average shares outstanding including dilutive stock options (in shares)									5,639,744	5,662,013	5,662,081
Diluted earnings per share (in dollars per share)	$ 0.35	$ 0.33	$ 0.25	$ 0.35	$ 0.35	$ 0.45	$ 0.34	$ 0.38	$ 1.29	$ 1.52	$ 1.35

Earnings per Share (Details 1)

Earnings per Share (Details 1) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Option shares
Summary of anti-dilutive shares
Anti-dilutive shares	44,458	65,270	104,400

Earnings per Share (Details 2)

Earnings per Share (Details 2) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Common Stock Outstanding [Roll Forward]
Outstanding, beginning of year	5,441,190	5,233,986	5,032,679
Issuance of stock as 4% stock dividend	217,155	209,359	201,307
Purchase of treasury stock	(41,738)	(2,155)	0
Outstanding, end of year	5,616,607	5,441,190	5,233,986

Earnings per Share (Parenthetic

Earnings per Share (Parentheticals) (Details 2)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Common Stock, Dividend Rate, Percentage	4.00%	4.00%	4.00%

Earnings per Share (Detail Text

Earnings per Share (Detail Textuals) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Aug. 06, 2015
Class of Stock [Line Items]
Number of common stock repurchased	41,738	2,155	0
Repurchase Program
Class of Stock [Line Items]
Share repurchase plan, Authorized amount				$ 2
Number of common stock repurchased	41,738	2,155
Average price per share of common stock repurchased	$ 14.92	$ 15.39

Capital Requirements (Details)

Capital Requirements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
The actual and required capital amounts and ratios for the Company and the Bank
Total capital (to risk-weighted assets), Actual Amount	$ 152,864	$ 146,068
Total capital (to risk-weighted assets), Actual Ratio (as a percent)	13.72%	14.78%
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount	$ 89,118	$ 79,066
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent)	8.00%	8.00%
Tier I capital (to risk-weighted assets), Actual Amount	$ 125,779	$ 118,875
Tier I capital (to risk-weighted assets), Actual, Ratio (as a percent)	11.29%	12.03%
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount	$ 66,839	$ 59,299
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent)	6.00%	6.00%
Common Equity Tier I Capital (to risk-weighted assets), Actual Amount	$ 94,818	$ 89,304
Common Equity Tier I Capital (to risk-weighted assets), Actual Ratio (as a percent)	8.51%	9.04%
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount	$ 50,129	$ 44,475
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent)	4.50%	4.50%
Tier I Capital (to adjusted average assets), Actual Amount	$ 125,779	$ 118,875
Tier I Capital (to adjusted average assets), Actual Ratio (as a percent)	9.87%	9.84%
Tier I Capital (to adjusted average assets), Required for Capital Adequacy Purposes, Amount	$ 50,998	$ 48,314
Tier I capital (to adjusted average assets) Required for Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%
Bank
The actual and required capital amounts and ratios for the Company and the Bank
Total capital (to risk-weighted assets), Actual Amount	$ 148,304	$ 137,572
Total capital (to risk-weighted assets), Actual Ratio (as a percent)	13.36%	13.98%
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount	$ 88,804	$ 78,718
Total capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent)	8.00%	8.00%
Total capital (to risk-weighted assets), Well-Capitalized Capital requirements, Amount	$ 111,005	$ 98,398
Total capital (to risk-weighted assets), Well-Capitalized Capital requirements, Ratio (as a percent)	10.00%	10.00%
Tier I capital (to risk-weighted assets), Actual Amount	$ 138,258	$ 128,808
Tier I capital (to risk-weighted assets), Actual, Ratio (as a percent)	12.46%	13.09%
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount	$ 66,603	$ 59,039
Tier I capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent)	6.00%	6.00%
Tier I capital (to risk-weighted assets), Well-Capitalized Capital requirements, Amount	$ 88,804	$ 78,718
Tier I capital (to risk-weighted assets), Well-Capitalized Capital requirements, Ratio (as a percent)	8.00%	8.00%
Common Equity Tier I Capital (to risk-weighted assets), Actual Amount	$ 138,258	$ 128,808
Common Equity Tier I Capital (to risk-weighted assets), Actual Ratio (as a percent)	12.46%	13.09%
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Amount	$ 49,952	$ 59,039
Common Equity Tier I Capital (to risk-weighted assets), Required for Capital Adequacy Purposes, Ratio (as a percent)	4.50%	6.00%
Common Equity Tier I Capital (to risk-weighted assets), Well-Capitalized Under Prompt Corrective Action Provision, Amount	$ 72,153	$ 78,718
Common Equity Tier I Capital (to risk-weighted assets), Well-Capitalized Under Prompt Corrective Action Provision, Ratio (as a percent)	6.50%	8.00%
Tier I Capital (to adjusted average assets), Actual Amount	$ 138,258	$ 128,808
Tier I Capital (to adjusted average assets), Actual Ratio (as a percent)	10.88%	10.73%
Tier I Capital (to adjusted average assets), Required for Capital Adequacy Purposes, Amount	$ 50,810	$ 48,025
Tier I capital (to adjusted average assets) Required for Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%
Tier I capital (to adjusted average assets), Well-Capitalized Capital requirements, Amount	$ 63,513	$ 60,031
Tier I capital (to adjusted average assets), Well-Capitalized Capital requirements, Ratio (as a percent)	5.00%	5.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Available for sale debt securities, fair value	$ 214,512	$ 235,054
Mortgage servicing rights, fair value	2,584	2,847
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Available for sale debt securities, fair value	0	0
Mortgage servicing rights, fair value	0	0
Other Observable Inputs (Level 2)
Assets:
Available for sale debt securities, fair value	214,512	235,054
Mortgage servicing rights, fair value	0	0
Significant Unobservable Inputs (Level 3)
Assets:
Available for sale debt securities, fair value	0	0
Mortgage servicing rights, fair value	2,584	2,847
Assets, Total	0
Recurring
Assets:
Assets, Total	217,096	237,901
Recurring | U.S. government and federal agency obligations
Assets:
Available for sale debt securities, fair value	13,364
Recurring | Government sponsored enterprises
Assets:
Available for sale debt securities, fair value	32,459	73,497
Recurring | Obligations of states and political subdivisions
Assets:
Available for sale debt securities, fair value	42,032	32,706
Recurring | Mortgage-backed securities
Assets:
Available for sale debt securities, fair value	126,657	128,851
Recurring | Mortgage servicing rights
Assets:
Mortgage servicing rights, fair value	2,584	2,847
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Assets, Total	0	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and federal agency obligations
Assets:
Available for sale debt securities, fair value	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government sponsored enterprises
Assets:
Available for sale debt securities, fair value	0	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions
Assets:
Available for sale debt securities, fair value	0	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities
Assets:
Available for sale debt securities, fair value	0	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights
Assets:
Mortgage servicing rights, fair value	0	0
Recurring | Other Observable Inputs (Level 2)
Assets:
Assets, Total	214,512	235,054
Recurring | Other Observable Inputs (Level 2) | U.S. government and federal agency obligations
Assets:
Available for sale debt securities, fair value	13,364
Recurring | Other Observable Inputs (Level 2) | Government sponsored enterprises
Assets:
Available for sale debt securities, fair value	32,459	73,497
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions
Assets:
Available for sale debt securities, fair value	42,032	32,706
Recurring | Other Observable Inputs (Level 2) | Mortgage-backed securities
Assets:
Available for sale debt securities, fair value	126,657	128,851
Recurring | Other Observable Inputs (Level 2) | Mortgage servicing rights
Assets:
Mortgage servicing rights, fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3)
Assets:
Assets, Total	2,584	2,847
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and federal agency obligations
Assets:
Available for sale debt securities, fair value	0
Recurring | Significant Unobservable Inputs (Level 3) | Government sponsored enterprises
Assets:
Available for sale debt securities, fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions
Assets:
Available for sale debt securities, fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities
Assets:
Available for sale debt securities, fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights
Assets:
Mortgage servicing rights, fair value	$ 2,584	$ 2,847

Fair Value Measurements (Det104

Fair Value Measurements (Details 1) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair value of assets
Balance at beginning of period	$ 2,847	$ 2,762
Total gains or losses (realized/unrealized) included in earnings	(529)	(301)
Total gains or losses (realized/unrealized) included in other comprehensive income	0	0
Purchases	0	0
Sales	0	0
Issues	266	386
Settlements	0	0
Balance at end of period	$ 2,584	$ 2,847

Fair Value Measurements (Det105

Fair Value Measurements (Details 2) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Quantitative Information
Weighted average constant prepayment rate (as a percent)	10.68%	9.58%
Weighted average note rate (as a percent)	3.85%	3.92%
Weighted average discount rate (as a percent)	9.69%	9.16%
Weighted average expected life (in years)	5 years 7 months 6 days	5 years 10 months 24 days

Fair Value Measurements (Det106

Fair Value Measurements (Details 3) - Nonrecurring - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		$ 0	$ 0
Other real estate owned and repossessed assets		0	0
Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Other real estate owned and repossessed assets		0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		5,950	4,189
Other real estate owned and repossessed assets		14,162	15,992
Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		5,950	4,189
Other real estate owned and repossessed assets		14,162	15,992
Total Gains (Losses)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on impaired loans	[1]	(1,029)	(1,885)
Gains (losses) on other real estate owned and repossessed assets	[1]	25	118
Commercial, financial, and agricultural | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Commercial, financial, and agricultural | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Commercial, financial, and agricultural | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		584	272
Commercial, financial, and agricultural | Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		584	272
Commercial, financial, and agricultural | Total Gains (Losses)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on impaired loans	[1]	(421)	(920)
Real estate construction - residential | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate construction - residential | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate construction - residential | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate construction - residential | Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate construction - residential | Total Gains (Losses)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on impaired loans	[1]	0	0
Real estate construction - commercial | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate construction - commercial | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate construction - commercial | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		42	87
Real estate construction - commercial | Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		42	87
Real estate construction - commercial | Total Gains (Losses)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on impaired loans	[1]	0	(10)
Real estate mortgage - residential | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate mortgage - residential | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate mortgage - residential | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		3,602	3,336
Real estate mortgage - residential | Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		3,602	3,336
Real estate mortgage - residential | Total Gains (Losses)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on impaired loans	[1]	(316)	(567)
Real estate mortgage - commercial | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate mortgage - commercial | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Real estate mortgage - commercial | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		1,641	369
Real estate mortgage - commercial | Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		1,641	369
Real estate mortgage - commercial | Total Gains (Losses)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on impaired loans	[1]	(257)	(322)
Consumer | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Consumer | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		0	0
Consumer | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		81	125
Consumer | Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans		81	125
Consumer | Total Gains (Losses)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on impaired loans	[1]	$ (35)	$ (66)
[1]	Total gains (losses) reported for other real estate owned and repossessed assets includes charge-offs, valuation write-downs, and net losses

Fair Value Measurements (Det107

Fair Value Measurements (Detail Textuals) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Gains included in earnings attributable to change in unrealized gains or losses	$ 108,000	$ 372,000
Impaired loans with a specific allowance	7,030,000	5,729,000
Specific allowance related to impaired loans	1,080,000	1,540,000
Impaired financing receivable charge offs	$ 1,000,000	$ 1,900,000

Fair Value of Financial Inst108

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Cash and due from banks	$ 25,589	$ 20,484
Federal funds sold and overnight interest-bearing deposits	1,406	7,893
Investment in available-for-sale securities, at fair value	214,512	235,054
Mortgage servicing rights	2,584	2,847
Accrued interest receivable	5,183	4,853
Deposits:
Non-interest bearing demand	235,975	208,035
Savings, interest checking and money market	468,731	441,080
Time deposits	305,960	298,082
Accrued interest payable	498	382
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and due from banks	25,589	20,484
Federal funds sold and overnight interest-bearing deposits	1,406	7,893
Investment in available-for-sale securities, at fair value	0	0
Loans, net	0	0
Investment in FHLB stock	0	0
Mortgage servicing rights	0	0
Cash surrender value - life insurance	0	0
Accrued interest receivable	5,183	4,853
Assets, Total	32,178	33,230
Deposits:
Non-interest bearing demand	235,975	208,035
Savings, interest checking and money market	468,731	441,080
Time deposits	0	0
Federal funds purchased and securities sold under agreements to repurchase	31,015	56,834
Subordinated notes	0	0
Federal Home Loan Bank advances	0	0
Accrued interest payable	498	382
Liabilities, Fair Value Disclosure, Total	736,219	706,331
Other Observable Inputs (Level 2)
Assets:
Cash and due from banks	0	0
Federal funds sold and overnight interest-bearing deposits	0	0
Investment in available-for-sale securities, at fair value	214,512	235,054
Loans, net	0	0
Investment in FHLB stock	5,149	3,390
Mortgage servicing rights	0	0
Cash surrender value - life insurance	2,409	2,348
Accrued interest receivable	0	0
Assets, Total	222,070	240,792
Deposits:
Non-interest bearing demand	0	0
Savings, interest checking and money market	0	0
Time deposits	0	0
Federal funds purchased and securities sold under agreements to repurchase	0	0
Subordinated notes	33,712	40,821
Federal Home Loan Bank advances	93,209	52,340
Accrued interest payable	0	0
Liabilities, Fair Value Disclosure, Total	126,921	93,161
Net Significant Unobservable Inputs (Level 3)
Assets:
Cash and due from banks	0	0
Federal funds sold and overnight interest-bearing deposits	0	0
Investment in available-for-sale securities, at fair value	0	0
Loans, net	959,929	854,775
Investment in FHLB stock	0	0
Mortgage servicing rights	2,584	2,847
Cash surrender value - life insurance	0	0
Accrued interest receivable	0	0
Assets, Total	962,513	857,622
Deposits:
Non-interest bearing demand	0	0
Savings, interest checking and money market	0	0
Time deposits	304,334	298,323
Federal funds purchased and securities sold under agreements to repurchase	0	0
Subordinated notes	0	0
Federal Home Loan Bank advances	0	0
Accrued interest payable	0	0
Liabilities, Fair Value Disclosure, Total	304,334	298,323
Carrying Amount
Assets:
Cash and due from banks	25,589	20,484
Federal funds sold and overnight interest-bearing deposits	1,406	7,893
Investment in available-for-sale securities, at fair value	214,512	235,054
Loans, net	964,143	856,476
Investment in FHLB stock	5,149	3,390
Mortgage servicing rights	2,584	2,847
Cash surrender value - life insurance	2,409	2,348
Accrued interest receivable	5,183	4,853
Assets, Total	1,220,975	1,133,345
Deposits:
Non-interest bearing demand	235,975	208,035
Savings, interest checking and money market	468,731	441,080
Time deposits	305,960	298,082
Federal funds purchased and securities sold under agreements to repurchase	31,015	56,834
Subordinated notes	49,486	49,486
Federal Home Loan Bank advances	93,392	50,000
Accrued interest payable	498	382
Liabilities, Fair Value Disclosure, Total	1,185,057	1,103,899
Fair Value
Assets:
Cash and due from banks	25,589	20,484
Federal funds sold and overnight interest-bearing deposits	1,406	7,893
Investment in available-for-sale securities, at fair value	214,512	235,054
Loans, net	959,929	854,775
Investment in FHLB stock	5,149	3,390
Mortgage servicing rights	2,584	2,847
Cash surrender value - life insurance	2,409	2,348
Accrued interest receivable	5,183	4,853
Assets, Total	1,216,761	1,131,644
Deposits:
Non-interest bearing demand	235,975	208,035
Savings, interest checking and money market	468,731	441,080
Time deposits	304,334	298,323
Federal funds purchased and securities sold under agreements to repurchase	31,015	56,834
Subordinated notes	33,712	40,821
Federal Home Loan Bank advances	93,209	52,340
Accrued interest payable	498	382
Liabilities, Fair Value Disclosure, Total	$ 1,167,474	$ 1,097,815

Repurchase Reserve Liability (D

Repurchase Reserve Liability (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets Sold Under Agreements To Repurchase [Roll Forward]
Balance at beginning of year	$ 160	$ 160	$ 160
Provision for repurchase liability	2	40	0
Reimbursement of expenses	(2)	(40)	0
Balance at end of year	$ 160	$ 160	$ 160

Repurchase Reserve Liability110

Repurchase Reserve Liability (Detail Textuals) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Security	Dec. 31, 2015USD ($)Security	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Repurchase Reserve Liability [Abstract]
Repurchase reserve liability	$ 160	$ 160	$ 160	$ 160
Number of loans sold to the secondary market | Security	2,877	3,024
Balance of loans sold to the secondary market	$ 294,400	$ 312,100
Loss on repurchase	$ 2,000	$ 40,000

Commitments and Contingencie111

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Contractual amount of off-balance-sheet financial instruments
Total contractual amount of off-balance-sheet financial instruments	$ 258,746	$ 165,947
Commitments to extend credit
Contractual amount of off-balance-sheet financial instruments
Total contractual amount of off-balance-sheet financial instruments	253,375	161,306
Commitments to originate residential first and second mortgage loans
Contractual amount of off-balance-sheet financial instruments
Total contractual amount of off-balance-sheet financial instruments	2,626	3,175
Standby letters of credit
Contractual amount of off-balance-sheet financial instruments
Total contractual amount of off-balance-sheet financial instruments	$ 2,745	$ 1,466

Commitments and Contingencie112

Commitments and Contingencies (Detail Textuals) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Contractual amount of off-balance-sheet financial instruments
Amounts accrued for estimated losses for the financial instruments	$ 0
Minimum
Contractual amount of off-balance-sheet financial instruments
Remaining term of standby letters of credit	1 month
Maximum
Contractual amount of off-balance-sheet financial instruments
Remaining term of standby letters of credit	5 years

Condensed Financial Informat113

Condensed Financial Information of the Parent Company Only (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and due from bank subsidiaries	$ 25,589	$ 20,484
Deferred tax asset	11,222	10,087
Other assets	11,742	10,548
Total assets	1,287,048	1,200,921
Liabilities and Stockholders' Equity
Subordinated notes	49,486	49,486
Other liabilities	10,974	9,736
Stockholders' equity	91,017	87,286	$ 80,568	$ 74,380
Total liabilities and stockholders' equity	1,287,048	1,200,921
HAWTHORN BANCSHARES, INC.
Assets
Cash and due from bank subsidiaries	3,945	4,971
Investment in equity securities	1,486	1,486
Investment in subsidiaries	139,686	134,099
Deferred tax asset	2,558	2,116
Other assets	23	7
Total assets	147,698	142,679
Liabilities and Stockholders' Equity
Subordinated notes	49,486	49,486
Other liabilities	7,195	5,907
Stockholders' equity	91,017	87,286
Total liabilities and stockholders' equity	$ 147,698	$ 142,679

Condensed Financial Informat114

Condensed Financial Information of the Parent Company Only (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income
Interest and dividends received from subsidiaries	$ 11,877	$ 11,607	$ 11,350	$ 11,176	$ 11,515	$ 11,829	$ 11,214	$ 11,198	$ 46,010	$ 45,756	$ 44,498
Expenses
Interest on subordinated notes									1,494	1,293	1,264
Other									3,130	3,084	2,813
Income tax benefit	(1,052)	(1,003)	(730)	(965)	(1,083)	(1,377)	(1,001)	(1,119)	(3,750)	(4,580)	(4,042)
Net income	$ 1,988	$ 1,884	$ 1,412	$ 1,998	$ 1,994	$ 2,540	$ 1,927	$ 2,138	7,282	8,599	7,654
HAWTHORN BANCSHARES, INC.
Income
Interest and dividends received from subsidiaries									46	1,039	2,538
Total income									46	1,039	2,538
Expenses
Interest on subordinated notes									1,494	1,293	1,264
Other									2,039	2,138	1,730
Total expenses									3,533	3,431	2,994
Income before income tax benefit and equity in undistributed income of subsidiaries									(3,487)	(2,392)	(456)
Income tax benefit									1,337	1,065	1,100
Equity in undistributed income of subsidiaries									9,432	9,926	7,010
Net income									$ 7,282	$ 8,599	$ 7,654

Condensed Financial Informat115

Condensed Financial Information of the Parent Company Only (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 1,988	$ 1,884	$ 1,412	$ 1,998	$ 1,994	$ 2,540	$ 1,927	$ 2,138	$ 7,282	$ 8,599	$ 7,654
Adjustments to reconcile net income to net cash provided by operating activities:
Stock based compensation expense									17	10	20
Other, net									(267)	(252)	2,355
Net cash (used) provided by operating activities									13,531	13,342	13,554
Cash flows from investing activities:
Net cash provided by investing activities									(94,235)	(50,230)	(17,096)
Cash flows from financing activities:
Cash dividends paid - common stock									(1,097)	(1,058)	(1,017)
Purchase of treasury stock									(623)	(33)	0
Net cash used in financing activities									79,322	22,456	17,912
Net (decrease) increase in cash and due from banks									(1,382)	(14,432)	14,370
Cash and cash equivalents, beginning of year				28,377				42,809	28,377	42,809	28,439
Cash and cash equivalents, end of year	26,995				28,377				26,995	28,377	42,809
HAWTHORN BANCSHARES, INC.
Cash flows from operating activities:
Net income									7,282	8,599	7,654
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries									(9,432)	(9,926)	(7,010)
Stock based compensation expense									17	10	20
Increase in deferred tax asset									(442)	(127)	(1,415)
Other, net									769	732	1,942
Net cash (used) provided by operating activities									(1,806)	(712)	1,191
Cash flows from investing activities:
Investment in subsidiary									2,500	5,750	400
Net cash provided by investing activities									2,500	5,750	400
Cash flows from financing activities:
Cash dividends paid - common stock									(1,097)	(1,058)	(1,017)
Purchase of treasury stock									(623)	(33)	0
Net cash used in financing activities									(1,720)	(1,091)	(1,017)
Net (decrease) increase in cash and due from banks									(1,026)	3,947	574
Cash and cash equivalents, beginning of year				$ 4,971				$ 1,024	4,971	1,024	450
Cash and cash equivalents, end of year	$ 3,945				$ 4,971				$ 3,945	$ 4,971	$ 1,024

Quarterly Financial Informat116

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information (Unaudited)
Interest income	$ 11,877	$ 11,607	$ 11,350	$ 11,176	$ 11,515	$ 11,829	$ 11,214	$ 11,198	$ 46,010	$ 45,756	$ 44,498
Interest expense	1,497	1,459	1,379	1,328	1,278	1,271	1,230	1,220	5,663	4,999	5,044
Net interest income	10,380	10,148	9,971	9,848	10,237	10,558	9,984	9,978	40,347	40,757	39,454
Provision for loan losses	450	300	425	250	0	0	250	0	1,425	250	0
Noninterest income	2,395	2,125	1,949	2,448	2,381	2,337	2,461	1,987	8,917	9,166	8,749
Noninterest expense	9,285	9,086	9,353	9,083	9,541	8,978	9,267	8,708	36,807	36,494	36,507
Income tax expense	1,052	1,003	730	965	1,083	1,377	1,001	1,119	3,750	4,580	4,042
Net income	$ 1,988	$ 1,884	$ 1,412	$ 1,998	$ 1,994	$ 2,540	$ 1,927	$ 2,138	$ 7,282	$ 8,599	$ 7,654
Net income (loss) per share:
Basic (loss) earnings per share (in dollars per share)	$ 0.35	$ 0.33	$ 0.25	$ 0.35	$ 0.35	$ 0.45	$ 0.34	$ 0.38	$ 1.29	$ 1.52	$ 1.35
Diluted (loss) earnings per share (in dollars per share)	$ 0.35	$ 0.33	$ 0.25	$ 0.35	$ 0.35	$ 0.45	$ 0.34	$ 0.38	$ 1.29	$ 1.52	$ 1.35