View Filing Data

Net Interest Income After Provision for Loan Losses

583

(734)

224

(1,264)

20,909

20,364

42,734

40,657

Non-interest Income

Service charges on deposit accounts

3,175

3,038

6,184

5,883

Interchange income

2,005

1,976

3,927

3,854

Net gains (losses) on assets

Mortgage loans

3,344

2,529

5,915

4,171

Securities

(34)

185

(7)

347

Mortgage loan servicing, net

(158)

(334)

667

(1,312)

Title insurance fees

323

253

587

541

Other

1,791

1,933

3,512

3,905

Total Non-Interest Income

10,446

9,580

20,785

17,389

Non-interest Expense

Compensation and employee benefits

13,380

12,000

27,527

23,881

Occupancy, net

1,920

1,856

4,062

4,063

Data processing

1,937

1,936

3,874

4,037

Furniture, fixtures and equipment

1,005

965

1,982

1,949

Communications

678

722

1,361

1,610

Loan and collection

670

571

1,083

1,396

Advertising

519

478

1,025

955

Legal and professional

389

345

826

758

Interchange expense

292

267

575

533

FDIC deposit insurance

202

331

400

665

Credit card and bank service fees

136

198

327

385

Other

1,633

1,226

3,288

2,708

Total Non-Interest Expense

22,761

20,895

46,330

42,940

Income Before Income Tax

8,594

9,049

17,189

15,106

Income tax expense

2,663

2,611

5,284

4,568

Net Income

$ 5,931

$ 6,438

$ 11,905

$ 10,538

Net Income Per Common Share

Basic (in dollars per share)

^[1]

$ 0.28

$ 0.30

$ 0.56

$ 0.49

Diluted (in dollars per share)

0.27

0.30

0.55

0.48

Dividends Per Common Share

Declared (in dollars per share)

0.10

0.08

0.20

0.16

Paid (in dollars per share)

$ 0.10

$ 0.08

$ 0.20

$ 0.16

[1]	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract]
Net income	$ 5,931	$ 6,438	$ 11,905	$ 10,538
Securities available for sale
Unrealized gains arising during period	4,095	2,334	7,718	4,448
Change in unrealized gains for which a portion of other than temporary impairment has been recognized in earnings	107	107	85	71
Reclassification adjustments for gains included in earnings	(11)	(109)	(117)	(283)
Unrealized gains recognized in other comprehensive income on securities available for sale	4,191	2,332	7,686	4,236
Income tax expense	1,467	816	2,690	1,483
Unrealized gains recognized in other comprehensive income on securities available for sale, net of tax	2,724	1,516	4,996	2,753
Other comprehensive income	2,724	1,516	4,996	2,753
Comprehensive income	$ 8,655	$ 7,954	$ 16,901	$ 13,291

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Condensed Consolidated Statements of Cash Flows (unaudited) [Abstract]
Net income	$ 11,905	$ 10,538
Adjustments to Reconcile Net Income to Net Cash From Operating Activities
Proceeds from sales of loans held for sale	189,654	129,838
Disbursements for loans held for sale	(193,486)	(129,514)
Provision for loan losses	224	(1,264)
Deferred income tax expense	7,589	5,625
Deferred loan fees	(3,002)	(987)
Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearing deposits - time	3,119	2,507
Net gains on mortgage loans	(5,915)	(4,171)
Net (gains) losses on securities	7	(347)
Share based compensation	916	825
Increase in accrued income and other assets	(1,922)	(1,164)
Decrease in accrued expenses and other liabilities	3,959	2,908
Total Adjustments	1,143	4,256
Net Cash From Operating Activities	13,048	14,794
Cash Flow Used in Investing Activities
Proceeds from the sale of securities available for sale	7,830	55,362
Proceeds from the maturity of securities available for sale	10,468	21,413
Principal payments received on securities available for sale	89,166	74,212
Purchases of securities available for sale	(69,824)	(159,698)
Proceeds from the maturity of interest bearing deposits - time	250	3,290
Purchase of Federal Reserve Bank stock	0	(129)
Redemption of Federal Reserve Bank stock	0	371
Net increase in portfolio loans (loans originated, net of principal payments)	(202,167)	(64,236)
Cash received from the sale of Mepco	33,446	0
Proceeds from bank-owned life insurance	523	742
Proceeds from the collection of vehicle service contract counterparty receivables	295	4,458
Proceeds from the sale of other real estate and repossessed assets	3,548	3,018
Capital expenditures	(1,904)	(990)
Net Cash Used in Investing Activities	(128,369)	(62,187)
Cash Flow From Financing Activities
Net increase in total deposits	20,500	42,329
Net decrease in other borrowings	(1)	(1)
Proceeds from Federal Home Loan Bank advances	242,000	0
Payments of Federal Home Loan Bank Advances	(165,908)	(156)
Dividends paid	(4,266)	(3,451)
Proceeds from issuance of common stock	57	56
Repurchase of common stock	0	(15,510)
Share based compensation withholding obligation	(487)	(627)
Net Cash From Financing Activities	91,895	22,640
Net Decrease in Cash and Cash Equivalents	(23,426)	(24,753)
Cash and Cash Equivalents at Beginning of Period	83,194	85,783
Cash and Cash Equivalents at End of Period	59,768	61,030
Cash paid during the period for
Interest	3,768	3,158
Income taxes	499	360
Transfers to other real estate and repossessed assets	1,014	1,275
Transfer of payment plan receivables to vehicle service contract counterparty receivables	0	294
Purchase of securities available for sale not yet settled	$ 4,366	$ 2,342

Condensed Consolidated Statements of Shareholders' Equity (unaudited) $ in Thousands	USD ($)
Balance at beginning of period at Dec. 31, 2015	$ 251,092
Balance at beginning of period, as adjusted at Dec. 31, 2015	252,339
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,538
Cash dividends declared	(3,451)
Issuance of common stock	56
Share based compensation	825
Share based compensation withholding obligation	(627)
Repurchase of common stock	(15,510)
Net change in accumulated other comprehensive loss, net of related tax effect	2,753
Balance at end of period at Jun. 30, 2016	246,923
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,438
Net change in accumulated other comprehensive loss, net of related tax effect	1,516
Balance at end of period at Jun. 30, 2016	246,923
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting	1,247
Balance at beginning of period at Dec. 31, 2016	248,980
Balance at beginning of period, as adjusted at Dec. 31, 2016	249,332
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,905
Cash dividends declared	(4,266)
Issuance of common stock	57
Share based compensation	916
Share based compensation withholding obligation	(487)
Repurchase of common stock	0
Net change in accumulated other comprehensive loss, net of related tax effect	4,996
Balance at end of period at Jun. 30, 2017	262,453
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,931
Net change in accumulated other comprehensive loss, net of related tax effect	2,724
Balance at end of period at Jun. 30, 2017	262,453
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting	$ 352

Preparation of Financial Statements

6 Months Ended

Jun. 30, 2017

Preparation of Financial Statements [Abstract]

Preparation of Financial Statements

1.	Preparation of Financial Statements

The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2016 included in our Annual Report on Form 10-K.

In our opinion, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary to present fairly our consolidated financial condition as of June 30, 2017 and December 31, 2016, and the results of operations for the three and six-month periods ended June 30, 2017 and 2016. The results of operations for the three and six -month periods ended June 30, 2017, are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made in the prior period financial statements to conform to the current period presentation. Our critical accounting policies include the determination of the allowance for loan losses, the valuation of originated mortgage loan servicing rights and the valuation of deferred tax assets. Refer to our 2016 Annual Report on Form 10-K for a disclosure of our accounting policies.

New Accounting Standards

6 Months Ended

Jun. 30, 2017

New Accounting Standards [Abstract]

New Accounting Standards

2.	New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this ASU specifies the accounting for some costs to obtain or fulfill a contract with a customer. This amended guidance is effective for us on January 1, 2018, and is not expected to have a material impact on our consolidated operating results or financial condition. Financial instruments for the most part and related contractual rights and obligations which are the sources of the majority of our operating revenue are excluded from the scope of this amended guidance. In addition, for those operating revenue streams that are included in the scope of this amended guidance, based upon our review of these sources of income we do not believe they will be materially impacted by this amended guidance.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU amends existing guidance related to the accounting for certain financial assets and liabilities. These amendments, among other things, require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This amended guidance is effective for us on January 1, 2018. We have reviewed the types of financial instruments impacted by this amended guidance, including certain equity investments and liabilities measured under the fair value election, and have determined that we do not currently own any such instruments. The balance of this amended guidance is expected to impact certain disclosure items but is not expected to have any impact on our consolidated operating results or financial condition.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This ASU amends existing guidance related to the accounting for leases. These amendments, among other things, requires lessees to account for most leases on the balance sheet while recognizing expense on the income statement in a manner similar to existing guidance. For lessors the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. This amended guidance is effective for us on January 1, 2019 and is not expected to have a material impact on our consolidated operating results or financial condition. Based on a review of our operating leases that we currently have in place we do not expect a material change in the recognition, measurement and presentation of lease expense or impact on cash flow. While the primary impact will be the recognition of certain operating leases on our Condensed Consolidated Statements of Financial Condition this impact is not expected to be material.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For securities available for sale, allowances will be recorded rather than reducing the carrying amount as is done under the current other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This amended guidance is effective for us on January 1, 2020. We began evaluating this ASU in 2016 and have formed a committee that includes personnel from various areas of the Bank that meets regularly to discuss the implementation of the ASU. We are currently in the process of gathering data and reviewing loss methodologies and have engaged third party resources that will assist us in the implementation of this ASU. While we have not yet determined what the impact will be on our consolidated operating results or financial condition by the nature of the implementation of an expected loss model compared to an incurred loss approach, we would expect our AFLL to increase under this ASU.

In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”). This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be accreted to maturity. This amended guidance is effective for us on January 1, 2019, with early adoption permitted. We adopted this amended guidance during the first quarter of 2017 using a modified retrospective approach. The impact of this adoption was to adjust our January 1, 2017 Condensed Consolidated Statement of Financial Position to reflect cumulative effect adjustments as summarized in the table below. The adjustments below reflect the recording of $0.46 million ($0.30 million, net of tax) of additional premium amortization on securities available for sale and a $0.30 million decrease in accumulated other comprehensive loss to reflect the decrease in after tax unrealized losses on securities available for sale as of January 1, 2017 as a result of adopting this amended guidance. After January 1, 2017, premium amortization on certain callable debt securities is now amortized to the first call date. During the first quarter of 2017 the impact on the Condensed Consolidated Statements of Operations was an increase to premium amortization of $0.03 million.

During the first quarter of 2017, we adopted the fair value method of accounting for our capitalized mortgage loan servicing rights pursuant to FASB Accounting Standards Codification topic 860 – “Transfers and Servicing”. Prior to January 1, 2017, we were accounting for our capitalized mortgage loan servicing rights under the amortization method. We adopted the fair value method using a modified retrospective adjustment to beginning accumulated deficit. The impact of the adoption of the fair value method is summarized in the table below. The adjustments below reflect the recording of a $0.54 million increase in the fair value of our capitalized mortgage loan servicing rights with a $0.19 million reduction in deferred tax assets, net for a net impact on accumulated deficit and total equity of $0.35 million.

	January 1, 2017 Originally Presented			Cumulative Retrospective Adjustments			January 1, 2017 Adjusted
	(In thousands)

Deferred tax assets, net	$	32,818		$	(190	)(1)	$	32,628
Capitalized mortgage loan servicing rights	$	13,671		$	542	(1)	$	14,213
Total assets	$	2,548,950		$	352		$	2,549,302
Accumulated deficit	$	(65,657	)	$	352	(1)
				$	(300	)(2)	$	(65,605	)
Accumulated other comprehensive loss	$	(9,108	)	$	300	(2)	$	(8,808	)
Total Shareholders’ Equity	$	248,980		$	352		$	249,332
Total Liabilities and Shareholders’ Equity	$	2,548,950		$	352		$	2,549,302

(1)	Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights.

(2)	Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08.

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=66092750

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305

Securities

6 Months Ended

Jun. 30, 2017

Securities [Abstract]

Securities

3.	Securities

Securities available for sale consist of the following:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
June 30, 2017
U.S. agency	$	28,179	$	248	$	29	$	28,398
U.S. agency residential mortgage-backed		143,670		1,309		495		144,484
U.S. agency commercial mortgage-backed		11,573		107		103		11,577
Private label mortgage-backed		25,150		426		244		25,332
Other asset backed		126,708		327		137		126,898
Obligations of states and political subdivisions		178,729		1,787		752		179,764
Corporate		61,629		856		76		62,409
Trust preferred		2,926		-		165		2,761
Foreign government		2,106		-		4		2,102
Total	$	580,670	$	5,060	$	2,005	$	583,725

December 31, 2016
U.S. agency	$	28,909	$	159	$	80	$	28,988
U.S. agency residential mortgage-backed		156,053		1,173		937		156,289
U.S. agency commercial mortgage-backed		12,799		28		195		12,632
Private label mortgage-backed		35,035		216		524		34,727
Other asset backed		146,829		271		391		146,709
Obligations of states and political subdivisions		175,180		478		4,759		170,899
Corporate		56,356		223		399		56,180
Trust preferred		2,922		-		343		2,579
Foreign government		1,626		-		13		1,613
Total	$	615,709	$	2,548	$	7,641	$	610,616

We adopted ASU 2017-08 during the first quarter of 2017 using a modified retrospective approach. As a result, the amortized cost of securities as of January 1, 2017 was adjusted lower by $0.46 million (see note #2).

Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:

	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)

June 30, 2017
U.S. agency	$	2,841	$	17	$	4,920	$	12	$	7,761	$	29
U.S. agency residential mortgage-backed		32,667		260		21,433		235		54,100		495
U.S. agency commercial mortgage-backed		6,147		102		122		1		6,269		103
Private label mortgage-backed		5,002		66		1,143		178		6,145		244
Other asset backed		25,998		38		11,035		99		37,033		137
Obligations of states and political subdivisions		50,302		611		6,788		141		57,090		752
Corporate		10,281		51		1,978		25		12,259		76
Trust preferred		-		-		2,761		165		2,761		165
Foreign government		2,102		4		-		-		2,102		4
Total	$	135,340	$	1,149	$	50,180	$	856	$	185,520	$	2,005

December 31, 2016
U.S. agency	$	4,179	$	41	$	8,217	$	39	$	12,396	$	80
U.S. agency residential mortgage-backed		62,524		732		20,857		205		83,381		937
U.S. agency commercial mortgage-backed		6,079		194		143		1		6,222		195
Private label mortgage-backed		20,545		281		1,413		243		21,958		524
Other asset backed		52,958		172		17,763		219		70,721		391
Obligations of states and political subdivisions		113,078		4,014		14,623		745		127,701		4,759
Corporate		25,546		292		2,810		107		28,356		399
Trust preferred		-		-		2,579		343		2,579		343
Foreign government		1,613		13		-		-		1,613		13
Total	$	286,522	$	5,739	$	68,405	$	1,902	$	354,927	$	7,641

Our portfolio of securities available for sale is reviewed quarterly for impairment in value. In performing this review management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income.

U.S. agency, U.S. agency residential mortgage-backed securities and U.S. agency commercial mortgage backed securities — at June 30, 2017, we had 21 U.S. agency, 103 U.S. agency residential mortgage-backed and 11 U.S. agency commercial mortgage-backed securities whose fair market value is less than amortized cost. The unrealized losses are largely attributed to increases in interest rates since acquisition and widening spreads to Treasury bonds. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary.

Private label mortgage backed securities — at June 30, 2017, we had 14 of this type of security whose fair value is less than amortized cost. The unrealized losses are primarily attributed to three securities purchased prior to 2016. One of these three securities has an impairment in excess of 10% and all three of these holdings have been impaired for more than 12 months. The unrealized losses are largely attributable to credit spread widening on these three securities since their acquisition.

These three securities are receiving principal and interest payments. These transactions are pass-through structures, receiving pro rata principal and interest payments from a dedicated collateral pool. The nonreceipt of interest cash flows is not expected and thus not presently considered in our discounted cash flow methodology discussed below.

These three private label mortgage-backed securities are periodically reviewed for other than temporary impairment (“OTTI”) utilizing a cash flow projection. The cash flow analysis forecasts cash flow from the underlying loans in each transaction and then applies these cash flows to the bonds in the securitization. Our cash flow analysis forecasts complete recovery of our cost basis for all three of these securities whose fair value is less than amortized cost.

As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no other declines discussed above are deemed to be other than temporary.

Other asset backed — at June 30, 2017, we had 69 other asset backed securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary.

Obligations of states and political subdivisions — at June 30, 2017, we had 183 municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to wider benchmark pricing spreads and increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary.

Corporate — at June 30, 2017, we had 13 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary.

Trust preferred securities — at June 30, 2017, we had three trust preferred securities whose fair value is less than amortized cost. All of our trust preferred securities are single issue securities issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities has suffered from credit spread widening.

One of the three securities is rated by two major rating agencies as investment grade, while one (a Bank of America issuance) is rated below investment grade by two major rating agencies and the other one is non-rated. The non-rated issue is a relatively small bank and was never rated. The issuer of this non-rated trust preferred security, which had a total amortized cost of $1.0 million and total fair value of $0.9 million as of June 30, 2017, continues to have satisfactory credit metrics and make interest payments.

The following table breaks out our trust preferred securities in further detail as of June 30, 2017 and December 31, 2016:

	June 30, 2017					December 31, 2016
	Fair Value		Net Unrealized Loss			Fair Value		Net Unrealized Loss
	(In thousands)

Trust preferred securities
Rated issues	$	1,844	$	(82	)	$	1,800	$	(123	)
Unrated issues		917		(83	)		779		(220	)

Foreign government — at June 30, 2017, we had two foreign government securities whose fair value is less than amortized cost. The unrealized loss is primarily due to increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary.

We recorded no credit related OTTI charges in our Condensed Consolidated Statements of Operations related to securities available for sale during the three and six month periods ended June 30, 2017 and 2016, respectively.

At June 30, 2017, three private label mortgage-backed securities had credit related OTTI and are summarized as follows:

	Senior Security		Super Senior Security		Senior Support Security		Total
	(In thousands)

As of June 30, 2017
Fair value	$	1,133	$	955	$	71	$	2,159
Amortized cost		1,003		888		-		1,891
Non-credit unrealized loss		-		-		-		-
Unrealized gain		130		67		71		268
Cumulative credit related OTTI		757		457		380		1,594

Each of these securities is receiving principal and interest payments similar to principal reductions in the underlying collateral. All three of these securities have unrealized gains at June 30, 2017. The original amortized cost for each of these securities has been permanently adjusted downward for previously recorded credit related OTTI. The unrealized loss (based on original amortized cost) for these securities is now less than previously recorded credit related OTTI amounts.

A roll forward of credit losses recognized in earnings on securities available for sale follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Balance at beginning of period	$	1,844	$	1,844	$	1,844	$	1,844
Additions to credit losses on securities for which no previous OTTI was recognized		-		-		-		-
Increases to credit losses on securities for which OTTI was previously recognized		-		-		-		-
Balance at end of period	$	1,844	$	1,844	$	1,844	$	1,844

The amortized cost and fair value of securities available for sale at June 30, 2017, by contractual maturity, follow:

	Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	30,555	$	30,608
Maturing after one year but within five years		99,193		99,956
Maturing after five years but within ten years		86,846		88,012
Maturing after ten years		56,975		56,858
		273,569		275,434
U.S. agency residential mortgage-backed		143,670		144,484
U.S. agency commercial mortgage-backed		11,573		11,577
Private label mortgage-backed		25,150		25,332
Other asset backed		126,708		126,898
Total	$	580,670	$	583,725

The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis. A summary of proceeds from the sale of securities available for sale and gains and losses for the six month periods ending June 30, follows:

			Realized
	Proceeds		Gains		Losses
	(In thousands)
2017	$	7,830	$	117	$	-
2016		55,362		336		53

During 2017 and 2016, our trading securities consisted of various preferred stocks. During the first six months of 2017 and 2016, we recognized gains (losses) on trading securities of $(0.124) million and $0.064 million, respectively, that are included in net gains (losses) on securities in the Condensed Consolidated Statements of Operations. These amounts relate to trading securities still held at each respective period end.

The entire disclosure for investments in certain debt and equity securities.

Loans

6 Months Ended

Jun. 30, 2017

Loans

Our assessment of the allowance for loan losses is based on an evaluation of the loan portfolio, recent loss experience, current economic conditions and other pertinent factors.

An analysis of the allowance for loan losses by portfolio segment for the three months ended June 30, follows:

	Commercial			Mortgage			Installment			Payment Plan Receivables(1)			Subjective Allocation		Total
	(In thousands)
2017
Balance at beginning of period	$	5,088		$	8,109		$	911		$	-		$	5,930	$	20,038
Additions (deductions)
Provision for loan losses		(39	)		38			73			-			511		583
Recoveries credited to the allowance		202			191			264			-			-		657
Loans charged against the allowance		(151	)		(193	)		(348	)		-			-		(692	)
Balance at end of period	$	5,100		$	8,145		$	900		$	-		$	6,441	$	20,586

2016
Balance at beginning of period	$	5,622		$	10,296		$	1,161		$	53		$	5,363	$	22,495
Additions (deductions)
Provision for loan losses		(663	)		(359	)		126			(1	)		163		(734	)
Recoveries credited to the allowance		1,114			294			351			-			-		1,759
Loans charged against the allowance		(34	)		(275	)		(499	)		-			-		(808	)
Balance at end of period	$	6,039		$	9,956		$	1,139		$	52		$	5,526	$	22,712

(1) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15.

An analysis of the allowance for loan losses by portfolio segment for the six months ended June 30, follows:

	Commercial			Mortgage			Installment			Payment Plan Receivables(1)			Subjective Allocation		Total
	(In thousands)
2017
Balance at beginning of period	$	4,880		$	8,681		$	1,011		$	-		$	5,662	$	20,234
Additions (deductions)
Provision for loan losses		(100	)		(661	)		206			-			779		224
Recoveries credited to the allowance		606			677			503			-			-		1,786
Loans charged against the allowance		(286	)		(552	)		(820	)		-			-		(1,658	)
Balance at end of period	$	5,100		$	8,145		$	900		$	-		$	6,441	$	20,586

2016
Balance at beginning of period	$	5,670		$	10,391		$	1,181		$	56		$	5,272	$	22,570
Additions (deductions)
Provision for loan losses		(1,067	)		(638	)		191			(4	)		254		(1,264	)
Recoveries credited to the allowance		1,470			676			572			-			-		2,718
Loans charged against the allowance		(34	)		(473	)		(805	)		-			-		(1,312	)
Balance at end of period	$	6,039		$	9,956		$	1,139		$	52		$	5,526	$	22,712

(1) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15.

Allowance for loan losses and recorded investment in loans by portfolio segment follows:

	Commercial		Mortgage		Installment		Subjective Allocation		Total
	(In thousands)
June 30, 2017
Allowance for loan losses
Individually evaluated for impairment	$	1,094	$	5,873	$	277	$	-	$	7,244
Collectively evaluated for impairment		4,006		2,272		623		6,441		13,342
Total ending allowance balance	$	5,100	$	8,145	$	900	$	6,441	$	20,586

Loans
Individually evaluated for impairment	$	11,351	$	56,106	$	4,437			$	71,894
Collectively evaluated for impairment		819,442		621,015		304,762				1,745,219
Total loans recorded investment		830,793		677,121		309,199				1,817,113
Accrued interest included in recorded investment		2,015		2,622		799				5,436
Total loans	$	828,778	$	674,499	$	308,400			$	1,811,677

December 31, 2016
Allowance for loan losses
Individually evaluated for impairment	$	2,244	$	6,579	$	329	$	-	$	9,152
Collectively evaluated for impairment		2,636		2,102		682		5,662		11,082
Total ending allowance balance	$	4,880	$	8,681	$	1,011	$	5,662	$	20,234

Loans
Individually evaluated for impairment	$	15,767	$	59,151	$	4,913			$	79,831
Collectively evaluated for impairment		790,228		481,828		261,474				1,533,530
Total loans recorded investment		805,995		540,979		266,387				1,613,361
Accrued interest included in recorded investment		1,978		2,364		771				5,113
Total loans	$	804,017	$	538,615	$	265,616			$	1,608,248

Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow:

	90+ and Still Accruing		Non- Accrual		Total Non- Performing Loans
	(In thousands)
June 30, 2017
Commercial
Income producing - real estate	$	-	$	203	$	203
Land, land development and construction - real estate		-		10		10
Commercial and industrial		-		541		541
Mortgage
1-4 family		-		5,481		5,481
Resort lending		-		1,043		1,043
Home equity - 1st lien		-		198		198
Home equity - 2nd lien		-		312		312
Purchased loans		-		-		-
Installment
Home equity - 1st lien		-		203		203
Home equity - 2nd lien		-		308		308
Boat lending		-		93		93
Recreational vehicle lending		-		20		20
Other		-		130		130
Total recorded investment	$	-	$	8,542	$	8,542
Accrued interest included in recorded investment	$	-	$	-	$	-
December 31, 2016
Commercial
Income producing - real estate	$	-	$	628	$	628
Land, land development and construction - real estate		-		105		105
Commercial and industrial		-		4,430		4,430
Mortgage
1-4 family		-		5,248		5,248
Resort lending		-		1,507		1,507
Home equity - 1st lien		-		222		222
Home equity - 2nd lien		-		317		317
Purchased loans		-		-		-
Installment
Home equity - 1st lien		-		266		266
Home equity - 2nd lien		-		289		289
Boat lending		-		219		219
Recreational vehicle lending		-		21		21
Other		-		112		112
Total recorded investment	$	-	$	13,364	$	13,364
Accrued interest included in recorded investment	$	-	$	-	$	-

An aging analysis of loans by class follows:

	Loans Past Due								Loans not		Total
	30-59 days		60-89 days		90+ days		Total		Past Due		Loans
	(In thousands)
June 30, 2017
Commercial
Income producing - real estate	$	36	$	-	$	30	$	66	$	280,018	$	280,084
Land, land development and construction - real estate		-		-		-		-		58,353		58,353
Commercial and industrial		254		-		121		375		491,981		492,356
Mortgage
1-4 family		1,894		1,007		5,481		8,382		448,747		457,129
Resort lending		136		264		1,043		1,443		94,764		96,207
Home equity - 1st lien		60		76		198		334		33,697		34,031
Home equity - 2nd lien		644		177		312		1,133		52,598		53,731
Purchased loans		5		4		-		9		36,014		36,023
Installment
Home equity - 1st lien		124		60		203		387		10,589		10,976
Home equity - 2nd lien		163		140		308		611		10,791		11,402
Boat lending		173		12		93		278		126,150		126,428
Recreational vehicle lending		50		13		20		83		89,132		89,215
Other		130		44		130		304		70,874		71,178
Total recorded investment	$	3,669	$	1,797	$	7,939	$	13,405	$	1,803,708	$	1,817,113
Accrued interest included in recorded investment	$	44	$	34	$	-	$	78	$	5,358	$	5,436

December 31, 2016
Commercial
Income producing - real estate	$	-	$	-	$	383	$	383	$	287,255	$	287,638
Land, land development and construction - real estate		74		-		31		105		51,670		51,775
Commercial and industrial		100		1,385		66		1,551		465,031		466,582
Mortgage
1-4 family		2,361		869		5,248		8,478		306,063		314,541
Resort lending		-		-		1,507		1,507		101,541		103,048
Home equity - 1st lien		149		-		222		371		28,645		29,016
Home equity - 2nd lien		470		218		317		1,005		54,232		55,237
Purchased loans		13		2		-		15		39,122		39,137
Installment
Home equity - 1st lien		311		48		266		625		12,025		12,650
Home equity - 2nd lien		238		41		289		568		13,390		13,958
Boat lending		184		33		219		436		102,489		102,925
Recreational vehicle lending		68		33		21		122		74,413		74,535
Other		289		30		112		431		61,888		62,319
Total recorded investment	$	4,257	$	2,659	$	8,681	$	15,597	$	1,597,764	$	1,613,361
Accrued interest included in recorded investment	$	45	$	19	$	-	$	64	$	5,049	$	5,113

Impaired loans are as follows:

	June 30, 2017		December 31, 2016
Impaired loans with no allocated allowance	(In thousands)
TDR	$	602	$	1,782
Non - TDR		-		1,107
Impaired loans with an allocated allowance
TDR - allowance based on collateral		2,375		3,527
TDR - allowance based on present value cash flow		68,350		72,613
Non - TDR - allowance based on collateral		262		491
Total impaired loans	$	71,589	$	79,520

Amount of allowance for loan losses allocated
TDR - allowance based on collateral	$	683	$	1,868
TDR - allowance based on present value cash flow		6,525		7,146
Non - TDR - allowance based on collateral		36		138
Total amount of allowance for loan losses allocated	$	7,244	$	9,152

Impaired loans by class are as follows (1):

	June 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:	(In thousands)
Commercial
Income producing - real estate	$	-	$	-	$	-	$	517	$	768	$	-
Land, land development & construction-real estate		-		-		-		31		709		-
Commercial and industrial		354		352		-		2,341		3,261		-
Mortgage
1-4 family		251		915		-		2		387		-
Resort lending		-		-		-		-		-		-
Home equity - 1st lien		-		-		-		-		-		-
Home equity - 2nd lien		-		-		-		-		-		-
Installment
Home equity - 1st lien		1		72		-		-		66		-
Home equity - 2nd lien		-		-		-		-		-		-
Boat lending		-		-		-		-		-		-
Recreational vehicle lending		-		-		-		-		-		-
Other		-		-		-		-		-		-
		606		1,339		-		2,891		5,191		-
With an allowance recorded:
Commercial
Income producing - real estate		7,647		7,835		594		7,737		7,880		554
Land, land development & construction-real estate		172		199		11		239		244		36
Commercial and industrial		3,178		3,256		489		4,902		5,246		1,654
Mortgage
1-4 family		39,194		40,728		3,590		41,701		43,479		4,100
Resort lending		16,251		16,318		2,249		16,898		16,931		2,453
Home equity - 1st lien		230		239		10		235		242		10
Home equity - 2nd lien		180		214		24		315		398		16
Installment
Home equity - 1st lien		1,825		1,952		87		1,994		2,117		118
Home equity - 2nd lien		2,147		2,173		165		2,415		2,443		182
Boat lending		1		6		1		1		6		-
Recreational vehicle lending		102		102		5		109		108		6
Other		361		394		19		394		426		23
		71,288		73,416		7,244		76,940		79,520		9,152
Total
Commercial
Income producing - real estate		7,647		7,835		594		8,254		8,648		554
Land, land development & construction-real estate		172		199		11		270		953		36
Commercial and industrial		3,532		3,608		489		7,243		8,507		1,654
Mortgage
1-4 family		39,445		41,643		3,590		41,703		43,866		4,100
Resort lending		16,251		16,318		2,249		16,898		16,931		2,453
Home equity - 1st lien		230		239		10		235		242		10
Home equity - 2nd lien		180		214		24		315		398		16
Installment
Home equity - 1st lien		1,826		2,024		87		1,994		2,183		118
Home equity - 2nd lien		2,147		2,173		165		2,415		2,443		182
Boat lending		1		6		1		1		6		-
Recreational vehicle lending		102		102		5		109		108		6
Other		361		394		19		394		426		23
Total	$	71,894	$	74,755	$	7,244	$	79,831	$	84,711	$	9,152

Accrued interest included in recorded investment	$	305					$	311

(1) There were no impaired purchased mortgage loans at June 30, 2017 or December 31, 2016.

Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending June 30, follows (1):

	2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:	(In thousands)
Commercial
Income producing - real estate	$	185	$	-	$	673	$	-
Land, land development & construction-real estate		-		-		335		-
Commercial and industrial		177		8		609		-
Mortgage
1-4 family		126		5		11		5
Resort lending		-		-		-		-
Home equity - 1st lien		-		-		-		-
Home equity - 2nd lien		-		-		-		-
Installment
Home equity - 1st lien		1		2		1		-
Home equity - 2nd lien		-		-		7		-
Boat lending		-		-		-		-
Recreational vehicle lending		-		-		-		-
Other		-		-		-		-
		489		15		1,636		5
With an allowance recorded:
Commercial
Income producing - real estate		7,694		104		8,210		100
Land, land development & construction-real estate		170		2		1,664		13
Commercial and industrial		3,237		37		6,203		59
Mortgage
1-4 family		39,646		494		46,041		475
Resort lending		16,471		150		17,689		159
Home equity - 1st lien		232		2		243		2
Home equity - 2nd lien		186		1		181		4
Installment
Home equity - 1st lien		1,855		33		2,230		42
Home equity - 2nd lien		2,228		35		2,751		41
Boat lending		1		-		2		-
Recreational vehicle lending		104		2		117		1
Other		369		6		442		9
		72,193		866		85,773		905
Total
Commercial
Income producing - real estate		7,879		104		8,883		100
Land, land development & construction-real estate		170		2		1,999		13
Commercial and industrial		3,414		45		6,812		59
Mortgage
1-4 family		39,772		499		46,052		480
Resort lending		16,471		150		17,689		159
Home equity - 1st lien		232		2		243		2
Home equity - 2nd lien		186		1		181		4
Installment
Home equity - 1st lien		1,856		35		2,231		42
Home equity - 2nd lien		2,228		35		2,758		41
Boat lending		1		-		2		-
Recreational vehicle lending		104		2		117		1
Other		369		6		442		9
Total	$	72,682	$	881	$	87,409	$	910

(1)	There were no impaired purchased mortgage loans during the three month periods ended June 30, 2017 and 2016, respectively.

Average recorded investment in and interest income earned on impaired loans by class for the six month periods ending June 30, follows (1):

	2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:	(In thousands)
Commercial
Income producing - real estate	$	296	$	-	$	662	$	2
Land, land development & construction-real estate		10		-		496		7
Commercial and industrial		898		8		821		21
Mortgage
1-4 family		85		9		15		6
Resort lending		-		-		-		-
Home equity - 1st lien		-		-		-		-
Home equity - 2nd lien		-		-		-		-
Installment
Home equity - 1st lien		-		3		-		1
Home equity - 2nd lien		-		-		5		-
Boat lending		-		-		-		-
Recreational vehicle lending		-		-		-		-
Other		-		-		-		-
		1,289		20		1,999		37
With an allowance recorded:
Commercial
Income producing - real estate		7,708		209		8,266		207
Land, land development & construction-real estate		193		4		1,673		26
Commercial and industrial		3,792		72		5,501		82
Mortgage
1-4 family		40,331		958		46,625		977
Resort lending		16,613		311		17,842		319
Home equity - 1st lien		233		4		218		4
Home equity - 2nd lien		229		3		202		5
Installment
Home equity - 1st lien		1,901		67		2,274		84
Home equity - 2nd lien		2,290		70		2,810		85
Boat lending		1		-		2		-
Recreational vehicle lending		106		3		119		3
Other		377		13		451		16
		73,774		1,714		85,983		1,808
Total
Commercial
Income producing - real estate		8,004		209		8,928		209
Land, land development & construction-real estate		203		4		2,169		33
Commercial and industrial		4,690		80		6,322		103
Mortgage
1-4 family		40,416		967		46,640		983
Resort lending		16,613		311		17,842		319
Home equity - 1st lien		233		4		218		4
Home equity - 2nd lien		229		3		202		5
Installment
Home equity - 1st lien		1,901		70		2,274		85
Home equity - 2nd lien		2,290		70		2,815		85
Boat lending		1		-		2		-
Recreational vehicle lending		106		3		119		3
Other		377		13		451		16
Total	$	75,063	$	1,734	$	87,982	$	1,845

(1)	There were no impaired purchased mortgage loans during the six month periods ended June 30, 2017 and 2016, respectively.

Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance.

Troubled debt restructurings follow:

	June 30, 2017
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDRs	$	10,551	$	56,100		$	66,651
Non-performing TDRs(2)		492		4,184	⁽³⁾		4,676
Total	$	11,043	$	60,284		$	71,327

	December 31, 2016
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDRs	$	10,560	$	59,726		$	70,286
Non-performing TDRs(2)		3,565		4,071	⁽³⁾		7,636
Total	$	14,125	$	63,797		$	77,922

(1)	Retail loans include mortgage and installment loan segments.

(2)	Included in non-performing loans table above.

(3)	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

We allocated $7.2 million and $9.0 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2017 and December 31, 2016, respectively.

During the six months ended June 30, 2017 and 2016, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans generally included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 36 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 230 months in certain circumstances.

Loans that have been classified as troubled debt restructurings during the three-month periods ended June 30 follow(1):

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance
	(Dollars in thousands)
2017
Commercial
Income producing - real estate		-	$	-	$	-
Land, land development & construction-real estate		-		-		-
Commercial and industrial		9		653		653
Mortgage
1-4 family		1		32		32
Resort lending		-		-		-
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		3		204		205
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		-		-		-
Total		13	$	889	$	890

2016
Commercial
Income producing - real estate		-	$	-	$	-
Land, land development & construction-real estate		-		-		-
Commercial and industrial		-		-		-
Mortgage
1-4 family		1		109		110
Resort lending		-		-		-
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		3		29		29
Home equity - 2nd lien		2		71		73
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		1		12		12
Total		7	$	221	$	224

(1)	There were no purchased mortgage loans classified as troubled debt restructurings during the three month periods ended June 30, 2017 and 2016, respectively.

Loans that have been classified as troubled debt restructurings during the six-month periods ended June 30 follow(1):

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance
	(Dollars in thousands)
2017
Commercial
Income producing - real estate		-	$	-	$	-
Land, land development & construction-real estate		-		-		-
Commercial and industrial		12		786		786
Mortgage
1-4 family		2		49		49
Resort lending		1		189		189
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		2		34		37
Home equity - 2nd lien		5		249		251
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		-		-		-
Total		22	$	1,307	$	1,312

2016
Commercial
Income producing - real estate		2	$	110	$	110
Land, land development & construction-real estate		-		-		-
Commercial and industrial		4		1,758		1,758
Mortgage
1-4 family		3		192		263
Resort lending		1		116		117
Home equity - 1st lien		1		107		78
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		4		59		60
Home equity - 2nd lien		4		126		129
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		1		12		12
Total		20	$	2,480	$	2,527

(1)	There were no purchased mortgage loans classified as troubled debt restructurings during the six month periods ended June 30, 2017 and 2016, respectively.

The troubled debt restructurings described above for 2017 had no impact on the allowance for loan losses and resulted in zero charge offs during the three months ended June 30, 2017, and increased the allowance by $0.1 million and resulted in zero charge offs during the six months ended June 30, 2017.

The troubled debt restructurings described above for 2016 had no impact on the allowance for loan losses and resulted in zero charge offs during the three months ended June 30, 2016, and increased the allowance by $0.3 million and resulted in zero charge offs during the six months ended June 30, 2016.

A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms.

There were no troubled debt restructurings that subsequently defaulted within twelve months following the modification during the three and six months ended June 30, 2017 or 2016.

In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

Credit Quality Indicators – As part of our on-going monitoring of the credit quality of our loan portfolios, we track certain credit quality indicators including (a) weighted-average risk grade of commercial loans, (b) the level of classified commercial loans, (c) credit scores of mortgage and installment loan borrowers, and (d) delinquency history and non-performing loans.

For commercial loans, we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows:

Rating 1 through 6: These loans are generally referred to as our “non-watch” commercial credits that include very high or exceptional credit fundamentals through acceptable credit fundamentals.

Rating 7 and 8: These loans are generally referred to as our “watch” commercial credits. This rating includes loans to borrowers that exhibit potential credit weakness or downward trends. If not checked or cured these trends could weaken our asset or credit position. While potentially weak, no loss of principal or interest is envisioned with these ratings.

Rating 9: These loans are generally referred to as our “substandard accruing” commercial credits. This rating includes loans to borrowers that exhibit a well-defined weakness where payment default is probable and loss is possible if deficiencies are not corrected. Generally, loans with this rating are considered collectible as to both principal and interest primarily due to collateral coverage.

Rating 10 and 11: These loans are generally referred to as our “substandard - non-accrual” and “doubtful” commercial credits, respectively. These ratings include loans to borrowers with weaknesses that make collection of debt in full, on the basis of current facts, conditions and values at best questionable and at worst improbable. All of these loans are placed in non-accrual.

Rating 12: These loans are generally referred to as our “loss” commercial credits. This rating includes loans to borrowers that are deemed incapable of repayment and are charged-off.

The following table summarizes loan ratings by loan class for our commercial loan segment:

	Commercial
	Non-watch 1-6		Watch 7-8		Substandard Accrual 9		Non- Accrual 10-11		Total
					(In thousands)
June 30, 2017
Income producing - real estate	$	276,218	$	3,344	$	320	$	202	$	280,084
Land, land development and construction - real estate		58,278		65		-		10		58,353
Commercial and industrial		475,372		13,171		3,272		541		492,356
Total	$	809,868	$	16,580	$	3,592	$	753	$	830,793
Accrued interest included in total	$	1,952	$	48	$	15	$	-	$	2,015

December 31, 2016
Income producing - real estate	$	282,886	$	3,787	$	337	$	628	$	287,638
Land, land development and construction - real estate		51,603		67		-		105		51,775
Commercial and industrial		449,365		9,788		2,998		4,431		466,582
Total	$	783,854	$	13,642	$	3,335	$	5,164	$	805,995
Accrued interest included in total	$	1,915	$	52	$	11	$	-	$	1,978

For each of our mortgage and installment segment classes, we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually.

The following tables summarize credit scores by loan class for our mortgage and installment loan segments:

	Mortgage (1)
	1-4 Family		Resort Lending		Home Equity 1st Lien		Home Equity 2nd Lien		Purchased Loans		Total
	(In thousands)
June 30, 2017
800 and above	$	51,751	$	11,770	$	7,477	$	8,575	$	8,122	$	87,695
750-799		175,169		34,856		14,175		19,038		19,302		262,540
700-749		98,924		25,749		6,019		12,087		8,041		150,820
650-699		69,420		13,070		3,501		7,359		432		93,782
600-649		27,633		4,790		1,080		2,471		-		35,974
550-599		15,598		2,790		478		1,555		-		20,421
500-549		8,948		1,407		543		1,340		-		12,238
Under 500		3,839		90		253		182		-		4,364
Unknown		5,847		1,685		505		1,124		126		9,287
Total	$	457,129	$	96,207	$	34,031	$	53,731	$	36,023	$	677,121
Accrued interest included in total	$	1,761	$	379	$	137	$	244	$	101	$	2,622

December 31, 2016
800 and above	$	36,534	$	10,484	$	6,048	$	8,392	$	8,462	$	69,920
750-799		102,382		41,999		10,006		20,113		20,984		195,484
700-749		69,337		24,727		5,706		12,360		9,115		121,245
650-699		50,621		13,798		4,106		8,167		437		77,129
600-649		25,270		5,769		1,674		3,067		-		35,780
550-599		13,747		3,030		455		1,699		-		18,931
500-549		9,215		1,438		486		981		-		12,120
Under 500		5,145		92		255		279		-		5,771
Unknown		2,290		1,711		280		179		139		4,599
Total	$	314,541	$	103,048	$	29,016	$	55,237	$	39,137	$	540,979
Accrued interest included in total	$	1,466	$	450	$	111	$	226	$	111	$	2,364

(1) Credit scores have been updated within the last twelve months.

	Installment(1)
	Home Equity 1st Lien		Home Equity 2nd Lien		Boat Lending		Recreational Vehicle Lending		Other		Total
	(In thousands)
June 30, 2017
800 and above	$	1,182	$	925	$	26,334	$	25,972	$	10,384	$	64,797
750-799		2,168		3,030		64,018		44,949		24,758		138,923
700-749		1,713		2,438		24,380		12,980		14,671		56,182
650-699		2,312		1,991		8,913		3,825		8,894		25,935
600-649		1,506		1,506		1,754		863		2,420		8,049
550-599		1,295		945		510		255		956		3,961
500-549		677		501		289		189		513		2,169
Under 500		97		59		66		12		133		367
Unknown		26		7		164		170		8,449		8,816
Total	$	10,976	$	11,402	$	126,428	$	89,215	$	71,178	$	309,199
Accrued interest included in total	$	44	$	49	$	291	$	215	$	200	$	799

December 31, 2016
800 and above	$	1,354	$	1,626	$	21,422	$	23,034	$	8,911	$	56,347
750-799		2,478		3,334		50,508		35,827		21,918		114,065
700-749		1,920		2,686		20,045		11,049		13,183		48,883
650-699		2,852		2,541		7,559		3,205		8,913		25,070
600-649		1,691		1,775		1,846		821		2,269		8,402
550-599		1,231		1,063		882		280		833		4,289
500-549		981		692		440		189		511		2,813
Under 500		114		220		73		16		211		634
Unknown		29		21		150		114		5,570		5,884
Total	$	12,650	$	13,958	$	102,925	$	74,535	$	62,319	$	266,387
Accrued interest included in total	$	54	$	59	$	264	$	203	$	191	$	771

(1) Credit scores have been updated within the last twelve months.

Foreclosed residential real estate properties included in other real estate and repossessed assets on our Condensed Consolidated Statements of Financial Condition totaled $2.0 million and $1.9 million at June 30, 2017 and December 31, 2016, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $1.2 million and $1.0 million at June 30, 2017 and December 31, 2016, respectively.

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

Shareholders' Equity and Earnings Per Common Share [Abstract]

Shareholders' Equity and Earnings Per Common Share

6 Months Ended

Jun. 30, 2017

Shareholders' Equity and Earnings Per Common Share

5.	Shareholders’ Equity and Earnings Per Common Share

On January 23, 2017, our Board of Directors authorized a share repurchase plan (the “Repurchase Plan”) to buy back up to 5% of our outstanding common stock through December 31, 2017. We expect to accomplish the repurchases through open market transactions, though we could affect repurchases through other means, such as privately negotiated transactions. The timing and amount of any share repurchases will depend on a variety of factors, including, among others, securities law restrictions, the trading price of our common stock, regulatory requirements, potential alternative uses for capital, and our financial performance. The Repurchase Plan does not obligate us to acquire any particular amount of common stock, and it may be modified or suspended at any time at our discretion. We expect to fund any repurchases from cash on hand. We did not repurchase any shares of common stock during the six months ended June 30, 2017.

A reconciliation of basic and diluted net income per common share follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(In thousands, except per share amounts)
Net income	$	5,931	$	6,438	$	11,905	$	10,538

Weighted average shares outstanding (1)		21,331		21,281		21,320		21,516
Effect of stock options		143		148		147		150
Stock units for deferred compensation plan for non-employee directors		119		114		119		114
Performance share units		54		41		57		37
Restricted stock units		-		55		-		70
Weighted average shares outstanding for calculation of diluted earnings per share		21,647		21,639		21,643		21,887

Net income per common share
Basic (1)	$	0.28	$	0.30	$	0.56	$	0.49
Diluted	$	0.27	$	0.30	$	0.55	$	0.48

(1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

Weighted average stock options outstanding that were not considered in computing diluted net income per share because they were anti-dilutive were zero for both the three and six month periods ended June 30, 2017, and totaled 0.03 million for both the three and six month periods ended June 30, 2016.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2017

Derivative Financial Instruments

6.	Derivative Financial Instruments

We are required to record derivatives on our Condensed Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting.

Our derivative financial instruments according to the type of hedge in which they are designated follows:

	June 30, 2017
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	44,985		0.1	$	1,082
Mandatory commitments to sell mortgage loans		80,760		0.1		24
Pay-fixed interest rate swap agreements		54,127		8.0		-
Pay-variable interest rate swap agreements		54,127		8.0		-
Purchased options		3,119		4.3		272
Written options		3,119		4.3		(272	)
Total	$	240,237		3.8	$	1,106

	December 31, 2016
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	26,658		0.1	$	646
Mandatory commitments to sell mortgage loans		61,954		0.1		630
Pay-fixed interest rate swap agreements		46,121		8.6		249
Pay-variable interest rate swap agreements		46,121		8.6		(249	)
Purchased options		3,119		4.5		238
Written options		3,119		4.5		(238	)
Total	$	187,092		4.4	$	1,276

Certain financial derivative instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our Condensed Consolidated Statements of Financial Condition and is adjusted on an ongoing basis to reflect their then current fair value. The changes in fair value of derivative financial instruments not designated as hedges are recognized in our Condensed Consolidated Statements of Operations.

In the ordinary course of business, we enter into rate-lock mortgage loan commitments with customers (“Rate-Lock Commitments”). These commitments expose us to interest rate risk. We also enter into mandatory commitments to sell mortgage loans (“Mandatory Commitments”) to reduce the impact of price fluctuations of mortgage loans held for sale and Rate-Lock Commitments. Mandatory Commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of Rate-Lock Commitments and Mandatory Commitments are recognized currently as part of net gains on mortgage loans in our Condensed Consolidated Statements of Operations. We obtain market prices on Mandatory Commitments and Rate-Lock Commitments. Net gains on mortgage loans, as well as net income may be more volatile as a result of these derivative instruments, which are not designated as hedges.

We currently offer to our deposit customers an equity linked time deposit product (“Altitude CD”). The Altitude CD is a time deposit that provides the customer a guaranteed return of principal at maturity plus a potential equity return (a written option), while we receive a like stream of funds based on the equity return (a purchased option). The written and purchased options will generally move in opposite directions resulting in little or no net impact on our Condensed Consolidated Statements of Operations. All of the written and purchased options in the table above relate to this Altitude CD product.

We have a program that allows commercial loan customers to lock in a fixed rate for a longer period of time than we would normally offer for interest rate risk reasons. We will enter into a variable rate commercial loan and an interest rate swap agreement with a customer and then enter into an offsetting interest rate swap agreement with an unrelated party. The interest rate swap agreement fair values will generally move in opposite directions resulting in little or no net impact on our Condensed Consolidated Statements of Operations. All of the interest rate swap agreements in the table above relate to this program.

The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Condensed Consolidated Statements of Financial Condition for the periods presented:

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets	$	1,082	Other assets	$	646	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		24	Other assets		630	Other liabilities		-	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		422	Other assets		493	Other liabilities		422	Other liabilities		244
Pay-variable interest rate swap agreements	Other assets		422	Other assets		244	Other liabilities		422	Other liabilities		493
Purchased options	Other assets		272	Other assets		238	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		272	Other liabilities		238
Total derivatives		$	2,222		$	2,251		$	1,116		$	975

The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows:

		Gain (Loss) Recognized in Income
	Location of Gain (Loss)	Three Month Periods Ended June 30,						Six Month Periods Ended June 30,
	Recognized in Income	2017			2016			2017			2016
		(In thousands)						(In thousands)
No hedge designation
Rate-lock mortgage loan commitments	Net gains on mortgage loans	$	65		$	130		$	436		$	349
Mandatory commitments to sell mortgage loans	Net gains on mortgage loans		190			(240	)		(606	)		(446	)
Pay-fixed interest rate swap agreements	Interest income		(359	)		(590	)		(249	)		(1,708	)
Pay-variable interest rate swap agreements	Interest income		359			590			249			1,708
Purchased options	Interest expense		(35	)		3			34			81
Written options	Interest expense		35			(3	)		(34	)		(81	)
Total		$	255		$	(110	)	$	(170	)	$	(97	)

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Intangible Assets

6 Months Ended

Jun. 30, 2017

Intangible Assets [Abstract]

Intangible Assets

7.	Intangible Assets

The following table summarizes intangible assets, net of amortization:

	June 30, 2017				December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)

Amortized intangible assets - core deposits	$	6,118	$	4,359	$	6,118	$	4,186

Amortization of other intangibles has been estimated through 2022 in the following table.

	(In thousands)

Six months ending December 31, 2017	$	173
2018		346
2019		346
2020		346
2021		346
2022		202
Total	$	1,759

Share Based Compensation

6 Months Ended

Jun. 30, 2017

Share Based Compensation [Abstract]

Share Based Compensation

8.	Share Based Compensation

We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.5 million shares of common stock as of June 30, 2017. The non-employee director stock purchase plan permits the issuance of additional share based payments for up to 0.2 million shares of common stock as of June 30, 2017. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares.

During the three month periods ended March 31, 2017 and 2016, pursuant to our long-term incentive plan, we granted 0.05 million and 0.07 million shares of restricted stock, respectively and 0.02 million and 0.03 million performance stock units (“PSU”), respectively to certain officers. The shares of restricted stock and PSUs cliff vest after a period of three years. The performance feature of the PSUs is based on a comparison of our total shareholder return over the three year period starting on the grant date to the total shareholder return over that period for a banking index of our peers. No long term incentive grants were made during the second quarters of 2017 or 2016.

Our directors may elect to receive a portion of their quarterly cash retainer fees in the form of common stock (either on a current basis or on a deferred basis pursuant to the non-employee director stock purchase plan referenced above). Shares equal in value to that portion of each director’s fees that he or she has elected to receive in stock are issued each quarter and vest immediately. We issued 0.005 million shares and 0.004 million shares to directors during the first six months of 2017 and 2016, respectively and expensed their value during those same periods.

Total compensation expense recognized for grants pursuant to our long-term incentive plan was $0.4 million and $0.8 million during the three and six month periods ended June 30, 2017, respectively, and was $0.4 million and $0.8 million during the same periods in 2016, respectively. The corresponding tax benefit relating to this expense was $0.2 million and $0.3 million for the three and six month periods ended June 30, 2017, respectively and $0.1 million and $0.3 million for the same periods in 2016. Total expense recognized for non-employee director share based payments was $0.04 million and $0.07 million during the three and six month periods ended June 30, 2017, respectively, and was $0.03 million and $0.06 million during the same periods in 2016, respectively. The corresponding tax benefit relating to this expense was $0.01 million and $0.03 million for the three and six month periods ended June 30, 2017, respectively and $0.01 million and $0.02 million during the same periods in 2016.

At June 30, 2017, the total expected compensation cost related to non-vested restricted stock and PSUs not yet recognized was $2.7 million. The weighted-average period over which this amount will be recognized is 2.4 years.

A summary of outstanding stock option grants and related transactions follows:

	Number of Shares			Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregated Intrinsic Value
								(In thousands)
Outstanding at January 1, 2017		211,018		$	5.05
Granted		-
Exercised		(26,224	)		3.76
Forfeited		-
Expired		-
Outstanding at June 30, 2017		184,794		$	5.23		4.6	$	3,053

Vested and expected to vest at June 30, 2017		184,794		$	5.23		4.6	$	3,053
Exercisable at June 30, 2017		184,794		$	5.23		4.6	$	3,053

A summary of outstanding non-vested restricted stock and PSUs and related transactions follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2017		296,422		$	14.52
Granted		68,473			21.07
Vested		(56,681	)		14.85
Forfeited		(7,321	)		15.73
Outstanding at June 30, 2017		300,893		$	15.86

Certain information regarding options exercised during the periods follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(In thousands)
Intrinsic value	$	195	$	60	$	474	$	177
Cash proceeds received	$	33	$	27	$	99	$	59
Tax benefit realized	$	68	$	21	$	166	$	62

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Income Tax

6 Months Ended

Jun. 30, 2017

Income Tax [Abstract]

Income Tax

9.	Income Tax

Income tax expense was $2.7 million and $2.6 million during the three month periods ended June 30, 2017 and 2016, respectively and $5.3 million and $4.6 million during the six months ended June 30, 2017 and 2016, respectively.

The second quarter of 2016 included a $0.3 million income tax benefit resulting from the adoption of Financial Accounting Standards Board Accounting Standards Update 2016-09 “Compensation – Stock Compensation (718) Improvements to Employee Share-Based Payment Accounting” during the second quarter of 2016.

We assess whether a valuation allowance should be established against our deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. The ultimate realization of this asset is primarily based on generating future income. We concluded at both June 30, 2017 and 2016, that the realization of substantially all of our deferred tax assets continues to be more likely than not.

We had maintained a valuation allowance against our deferred tax assets of approximately $1.1 million at December 31, 2016. This valuation allowance on our deferred tax assets related to state income taxes at Mepco. In this instance, we determined that the future realization of these particular deferred tax assets was not more likely than not. That conclusion was based on the pending sale of Mepco’s payment plan business. After accounting for the May 2017 sale of our payment plan business, all that remained of these deferred tax assets were loss carryforwards that we wrote off against the related valuation allowance as of June 30, 2017 as we will no longer be doing business in those states.

At both June 30, 2017 and December 31, 2016, we had approximately $0.8 million, of gross unrecognized tax benefits. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the balance of 2017.

Regulatory Matters

6 Months Ended

Jun. 30, 2017

Regulatory Matters [Abstract]

Regulatory Matters

10.	Regulatory Matters

Capital guidelines adopted by federal and state regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of June 30, 2017, the Bank had positive undivided profits of $11.8 million. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent and in accordance with guidelines of regulatory authorities.

We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our consolidated financial statements. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of June 30, 2017 and December 31, 2016, categorized our Bank as well capitalized. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (“FDIC”) categorization.

On July 2, 2013, the Federal Reserve approved a final rule that establishes an integrated regulatory capital framework (the “New Capital Rules”). The rule implements in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act. In general, under the New Capital Rules, minimum requirements have increased for both the quantity and quality of capital held by banking organizations. Consistent with the international Basel framework, the New Capital Rules include a new minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. The capital conservation buffer began to phase in on January 1, 2016 with 1.25% and 0.625% added to the minimum ratio for adequately capitalized institutions for 2017 and 2016, respectively and 0.625% will be added each subsequent year until fully phased in during 2019. This capital conservation buffer is not reflected in the table that follows. To avoid limits on capital distributions and certain discretionary bonus payments we must meet the minimum ratio for adequately capitalized institutions plus the phased in buffer. The rule also raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking organizations. As to the quality of capital, the New Capital Rules emphasize common equity Tier 1 capital, the most loss-absorbing form of capital, and implement strict eligibility criteria for regulatory capital instruments. The New Capital Rules also change the methodology for calculating risk-weighted assets to enhance risk sensitivity.

Our actual capital amounts and ratios follow:

	Actual					Minimum for Adequately Capitalized Institutions					Minimum for Well-Capitalized Institutions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)

June 30, 2017
Total capital to risk-weighted assets
Consolidated	$	298,454		15.45	%	$	154,583		8.00	%	NA		NA
Independent Bank		277,429		14.37			154,410		8.00		$	193,013		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	276,978		14.33	%	$	115,937		6.00	%	NA		NA
Independent Bank		255,953		13.26			115,808		6.00		$	154,410		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	245,795		12.72	%	$	86,953		4.50	%	NA		NA
Independent Bank		255,953		13.26			86,856		4.50		$	125,459		6.50	%

Tier 1 capital to average assets
Consolidated	$	276,978		10.74	%	$	103,173		4.00	%	NA		NA
Independent Bank		255,953		9.93			103,115		4.00		$	128,894		5.00	%

December 31, 2016
Total capital to risk-weighted assets
Consolidated	$	286,289		15.86	%	$	144,413		8.00	%	NA		NA
Independent Bank		270,855		15.02			144,223		8.00		$	180,279		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	265,405		14.70	%	$	108,309		6.00	%	NA		NA
Independent Bank		249,971		13.87			108,167		6.00		$	144,223		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	238,996		13.24	%	$	81,232		4.50	%	NA		NA
Independent Bank		249,971		13.87			81,126		4.50		$	117,181		6.50	%

Tier 1 capital to average assets
Consolidated	$	265,405		10.50	%	$	101,112		4.00	%	NA		NA
Independent Bank		249,971		9.90			101,019		4.00		$	126,274		5.00	%

NA - Not applicable

The components of our regulatory capital are as follows:

	Consolidated						Independent Bank
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(In thousands)
Total shareholders’ equity	$	262,453		$	248,980		$	266,093		$	258,814
Add (deduct)
Accumulated other comprehensive (gain) loss for regulatory purposes		(1,985	)		3,310			(1,985	)		3,310
Intangible assets		(1,407	)		(1,159	)		(1,407	)		(1,159	)
Disallowed deferred tax assets		(13,266	)		(12,135	)		(6,748	)		(10,994	)
Common equity tier 1 capital		245,795			238,996			255,953			249,971
Qualifying trust preferred securities		34,500			34,500			-			-
Disallowed deferred tax assets		(3,317	)		(8,091	)		-			-
Tier 1 capital		276,978			265,405			255,953			249,971

Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets		21,476			20,884			21,476			20,884
Total risk-based capital	$	298,454		$	286,289		$	277,429		$	270,855

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

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Fair Value Disclosures

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures

11.	Fair Value Disclosures

FASB ASC topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets.

Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets.

Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

We used the following methods and significant assumptions to estimate fair value:

Securities: Where quoted market prices are available in an active market, securities (trading or available for sale) are classified as Level 1 of the valuation hierarchy. Level 1 securities include certain preferred stocks included in our trading portfolio for which there are quoted prices in active markets. If quoted market prices are not available for the specific security, then fair values are estimated by (1) using quoted market prices of securities with similar characteristics, (2) matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices, or (3) a discounted cash flow analysis whose significant fair value inputs can generally be verified and do not typically involve judgment by management. These securities are classified as Level 2 of the valuation hierarchy and primarily include agency securities, private label mortgage-backed securities, other asset backed securities, obligations of states and political subdivisions, trust preferred securities, corporate securities and foreign government securities.

Loans held for sale: The fair value of mortgage loans held for sale is based on mortgage backed security pricing for comparable assets (recurring Level 2).

Impaired loans with specific loss allocations based on collateral value: From time to time, certain loans are considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At June 30, 2017 and December 31, 2016, all of our impaired loans were evaluated based on either the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. When the fair value of the collateral is based on an appraised value or when an appraised value is not available we record the impaired loan as nonrecurring Level 3. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and thus will typically result in a Level 3 classification of the inputs for determining fair value.

Other real estate: At the time of acquisition, other real estate is recorded at fair value, less estimated costs to sell, which becomes the property’s new basis. Subsequent write-downs to reflect declines in value since the time of acquisition may occur from time to time and are recorded in non-interest expense-other in the Condensed Consolidated Statements of Operations. The fair value of the property used at and subsequent to the time of acquisition is typically determined by a third party appraisal of the property. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both collateral-dependent impaired loans and other real estate are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by us. Once received, an independent third party (for commercial properties over $0.25 million) or a member of our Collateral Evaluation Department (for commercial properties under $0.25 million) or a member of our Special Assets Group (for residential properties) reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. We compare the actual selling price of collateral that has been sold to the most recent appraised value of our properties to determine what additional adjustment, if any, should be made to the appraisal value to arrive at fair value. For commercial and residential properties we typically discount an appraisal to account for various factors that the appraisal excludes in its assumptions. These additional discounts generally do not result in material adjustments to the appraised value.

Capitalized mortgage loan servicing rights: The fair value of capitalized mortgage loan servicing rights is based on a valuation model used by an independent third party that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. Certain model assumptions are generally unobservable and are based upon the best information available including data relating to our own servicing portfolio, reviews of mortgage servicing assumption and valuation surveys and input from various mortgage servicers and, therefore, are recorded as Level 3. Management evaluates the third party valuation for reasonableness each quarter as part of our financial reporting control processes. Prior to January 1, 2017, capitalized mortgage loan servicing rights were accounted for using the amortization method of accounting and were measured at fair value on a non-recurring basis. During the first quarter of 2017, we adopted the fair value method of accounting for our capitalized mortgage loan servicing rights (see note #2) and are now measured at fair value on a recurring basis.

Derivatives: The fair value of rate-lock mortgage loan commitments and mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets (recurring Level 2). The fair value of interest rate swap agreements is based on a discounted cash flow analysis whose significant fair value inputs can generally be observed in the market place and do not typically involve judgment by management (recurring Level 2). The fair value of purchased and written options is based on prices of financial instruments with similar characteristics and do not typically involve judgment by management (recurring Level 2).

Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows:

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
June 30, 2017:
Measured at Fair Value on a Recurring Basis:
Assets
Trading securities	$	286	$	286	$	-	$	-
Securities available for sale
U.S. agency		28,398		-		28,398		-
U.S. agency residential mortgage-backed		144,484		-		144,484		-
U.S. agency commercial mortgage-backed		11,577		-		11,577		-
Private label mortgage-backed		25,332		-		25,332		-
Other asset backed		126,898		-		126,898		-
Obligations of states and political subdivisions		179,764		-		179,764		-
Corporate		62,409		-		62,409		-
Trust preferred		2,761		-		2,761		-
Foreign government		2,102		-		2,102		-
Loans held for sale		45,693		-		45,693		-
Capitalized mortgage loan servicing rights		14,515		-		-		14,515
Derivatives (1)		2,222		-		2,222		-
Liabilities
Derivatives (2)		1,116		-		1,116		-

Measured at Fair Value on a Non-recurring basis:
Assets
Impaired loans (3)
Commercial
Income producing - real estate		287		-		-		287
Land, land development & construction-real estate		12		-		-		12
Commercial and industrial		1,241		-		-		1,241
Mortgage
1-4 family		378		-		-		378
Other real estate (4)
Mortgage
1-4 family		162		-		-		162
Resort lending		5		-		-		5

(1)	Included in accrued income and other assets

(2)	Included in accrued expenses and other liabilities

(3)	Only includes impaired loans with specific loss allocations based on collateral value.

(4)	Only includes other real estate with subsequent write downs to fair value.

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
December 31, 2016:
Measured at Fair Value on a Recurring Basis:
Assets
Trading securities	$	410	$	410	$	-	$	-
Securities available for sale
U.S. agency		28,988		-		28,988		-
U.S. agency residential mortgage-backed		156,289		-		156,289		-
U.S. agency commercial mortgage-backed		12,632		-		12,632		-
Private label mortgage-backed		34,727		-		34,727		-
Other asset backed		146,709		-		146,709		-
Obligations of states and political subdivisions		170,899		-		170,899		-
Corporate		56,180		-		56,180		-
Trust preferred		2,579		-		2,579		-
Foreign government		1,613		-		1,613		-
Loans held for sale		35,946		-		35,946		-
Derivatives (1)		2,251		-		2,251		-
Liabilities
Derivatives (2)		975		-		975		-

Measured at Fair Value on a Non-recurring basis:
Assets
Capitalized mortgage loan servicing rights (3)		8,163		-		-		8,163
Impaired loans (4)
Commercial
Income producing - real estate		255		-		-		255
Land, land development & construction-real estate		54		-		-		54
Commercial and industrial		1,342		-		-		1,342
Mortgage
1-4 family		361		-		-		361
Other real estate (5)
Commercial
Income producing - real estate (6)		2,863		-		2,863		-
Land, land development & construction-real estate		176		-		-		176
Mortgage
1-4 family		98		-		-		98
Resort lending		133		-		-		133

(1)	Included in accrued income and other assets

(2)	Included in accrued expenses and other liabilities

(3)	Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance.

(4)	Only includes impaired loans with specific loss allocations based on collateral value.

(5)	Only includes other real estate with subsequent write downs to fair value.

(6)	Level 2 valuation is based on a signed purchase agreement.

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2017 and 2016.

Changes in fair values for financial assets which we have elected the fair value option for the periods presented were as follows:

		Changes in Fair Values for the Six-Month Periods Ended June 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
		2017											2016
										Total Change in Fair Values Included							Total Change in Fair Values Included
		Net Gains (Losses) on Assets					Mortgage Loan			in Current Period			Net Gains (Losses) on Assets				in Current Period
		Securities			Loans		Servicing, net			Earnings			Securities		Loans		Earnings
	(In thousands)
Trading securities		$	(124	)	$	-	$	-		$	(124	)	$	64	$	-	$	64
Loans held for sale			-			666		-			666			-		478		478
Capitalized mortgage loan servicing rights			-			-		(1,495	)		(1,495	)		-		-		-

For those items measured at fair value pursuant to our election of the fair value option, interest income is recorded within the Condensed Consolidated Statements of Operations based on the contractual amount of interest income earned on these financial assets and dividend income is recorded based on cash dividends received.

The following represent impairment charges recognized during the three and six month periods ended June 30, 2017 and 2016 relating to assets measured at fair value on a non-recurring basis:

Capitalized mortgage loan servicing rights, whose individual strata are measured at fair value, had a carrying amount of $8.2 million, which is net of a valuation allowance of $2.3 million, at December 31, 2016. A charge of $0.6 million and $2.1 million was included in our results of operations for the three and six month periods ending June 30, 2016, respectively.

Loans which are measured for impairment using the fair value of collateral for collateral dependent loans had a carrying amount of $2.6 million, with a valuation allowance of $0.7 million at June 30, 2017, and had a carrying amount of $4.0 million, with a valuation allowance of $2.0 million at December 31, 2016. The provision for loan losses included in our results of operations relating to impaired loans was a net expense (recovery) of $0.1 million and $(0.1) million for the three month periods ending June 30, 2017 and 2016, respectively, and a net expense of $0.3 million in each of the six month periods ending June 30, 2017 and 2016, respectively.

Other real estate, which is measured using the fair value of the property, had a carrying amount of $0.2 million which is net of a valuation allowance of $0.1 million at June 30, 2017, and a carrying amount of $3.2 million, which is net of a valuation allowance of $0.8 million, at December 31, 2016. An additional charge relating to other real estate measured at fair value of $0.03 million and $0.04 million was included in our results of operations during the three and six month periods ended June 30, 2017, respectively and $0.04 million and $0.06 million during the same periods in 2016.

A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follows:

	Capitalized Mortgage Loan Servicing Rights
	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016

Beginning balance	$	14,727		$	-	$	-		$	-
Change in accounting		-			-		14,213			-
Beginning balance, as adjusted		14,727			-		14,213			-
Total losses realized and unrealized:
Included in results of operations		(1,231	)		-		(1,495	)		-
Included in other comprehensive income		-			-		-			-
Purchases, issuances, settlements, maturities and calls		1,019			-		1,797			-
Transfers in and/or out of Level 3		-			-		-			-
Ending balance	$	14,515		$	-	$	14,515		$	-

Amount of total losses for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at June 30	$	(1,231	)	$	-	$	(1,495	)	$	-

As discussed above we changed the accounting for capitalized mortgage loan servicing rights during the first quarter of 2017 (see note #2) and are now measuring valuation on a recurring basis. The fair value of our capitalized mortgage loan servicing rights has been determined based on a valuation model used by an independent third party as discussed above. The significant unobservable inputs used in the fair value measurement of the capitalized mortgage loan servicing rights are discount rate, cost to service, ancillary income and float rate. Significant changes in all four of these assumptions in isolation would result in significant changes to the value of our capitalized mortgage loan servicing rights. Quantitative information about our Level 3 fair value measurements measured on a recurring basis follows:

	Asset Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average
	(In thousands)
June 30, 2017
Capitalized mortgage loan servicing rights	$	14,515	Present value of net	Discount rate		10.09	%
			servicing revenue	Cost to service	$	81
				Ancillary income		24
				Float rate		1.96	%

Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows:

	Asset Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average
	(In thousands)
June 30, 2017
Impaired loans
Commercial	$	1,540	Sales comparison approach	Adjustment for differences between comparable sales	(2.3		)%
Mortgage		378	Sales comparison approach	Adjustment for differences between comparable sales		(2.9	)

Other real estate
Mortgage		167	Sales comparison approach	Adjustment for differences between comparable sales		(14.1	)

December 31, 2016
Capitalized mortgage loan servicing rights	$	8,163	Present value of net servicing revenue	Discount rate		10.07	%
				Cost to service	$	83
				Ancillary income		24
				Float rate		1.97	%
Impaired loans
Commercial (1)		1,446	Sales comparison approach	Adjustment for differences between comparable sales		(1.5	)%
Mortgage		361	Sales comparison approach	Adjustment for differences between comparable sales		(4.7	)

Other real estate
Commercial		176	Sales comparison approach	Adjustment for differences between comparable sales		(22.5	)
Mortgage		231	Sales comparison approach	Adjustment for differences between comparable sales		(5.1	)

(1)

In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2016, we had an impaired collateral dependent commercial relationship that totaled $0.2 million that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory. Valuation techniques included appraisals and discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values.

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected for the periods presented.

	Aggregate Fair Value		Difference		Contractual Principal
	(In thousands)
Loans held for sale
June 30, 2017	$	45,693	$	1,103	$	44,590
December 31, 2016		35,946		437		35,509

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments

6 Months Ended

Jun. 30, 2017

Fair Values of Financial Instruments

12. Fair Values of Financial Instruments

Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates.

Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances. Fair value methodologies discussed below do not necessarily represent an exit price in the determination of the fair value of these financial instruments.

Cash and due from banks and interest bearing deposits: The recorded book balance of cash and due from banks and interest bearing deposits approximate fair value and are classified as Level 1.

Interest bearing deposits - time: Interest bearing deposits - time have been valued based on a model using a benchmark yield curve plus a base spread and are classified as Level 2.

Securities: Financial instrument assets actively traded in a secondary market have been valued using quoted market prices. Trading securities are classified as Level 1 while securities available for sale are classified as Level 2 as described in note #11.

Federal Home Loan Bank and Federal Reserve Bank stock: It is not practicable to determine the fair value of FHLB and FRB stock due to restrictions placed on transferability.

Net loans and loans held for sale: The fair value of loans is calculated by discounting estimated future cash flows using estimated market discount rates that reflect credit and interest-rate risk inherent in the loans and do not necessarily represent an exit price. Loans are classified as Level 3. Impaired loans are valued at the lower of cost or fair value as described in note #11. Loans held for sale are classified as Level 2 as described in note #11. Payment plan receivables held for sale are also classified as Level 2 based on a signed purchase agreement as described in note #15.

Accrued interest receivable and payable: The recorded book balance of accrued interest receivable and payable approximate fair value and are classified at the same Level as the asset and liability they are associated with.

Derivative financial instruments: The fair value of rate-lock mortgage loan commitments and mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets, the fair value of interest rate swap agreements is based on a discounted cash flow analysis whose significant fair value inputs can generally be observed in the market place and do not typically involve judgment by management and the fair value of purchased and written options is based on prices of financial instruments with similar characteristics and do not typically involve judgment by management. Each of these instruments has been classified as Level 2 as described in note #11.

Deposits: Deposits without a stated maturity, including demand deposits, savings, NOW and money market accounts, have a fair value equal to the amount payable on demand. Each of these instruments is classified as Level 1. Deposits with a stated maturity, such as time deposits have generally been valued based on the discounted value of contractual cash flows using a discount rate approximating current market rates for liabilities with a similar maturity resulting in a Level 2 classification.

Other borrowings: Other borrowings have been valued based on the discounted value of contractual cash flows using a discount rate approximating current market rates for liabilities with a similar maturity resulting in a Level 2 classification.

Subordinated debentures: Subordinated debentures have generally been valued based on a quoted market price of similar instruments resulting in a Level 2 classification.

The estimated recorded book balances and fair values follow:

					Fair Value Using
	Recorded Book				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Un- observable Inputs
	Balance		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
June 30, 2017
Assets
Cash and due from banks	$	35,513	$	35,513	$	35,513	$	-	$	-
Interest bearing deposits		24,255		24,255		24,255		-		-
Interest bearing deposits - time		5,339		5,346		-		5,346		-
Trading securities		286		286		286		-		-
Securities available for sale		583,725		583,725		-		583,725		-
Federal Home Loan Bank and Federal
Reserve Bank Stock		15,543		NA		NA		NA		NA
Net loans and loans held for sale		1,836,784		1,798,133		-		45,693		1,752,440
Accrued interest receivable		7,713		7,713		1		2,460		5,252
Derivative financial instruments		2,222		2,222		-		2,222		-

Liabilities
Deposits with no stated maturity (1)	$	1,769,406	$	1,769,406	$	1,769,406	$	-	$	-
Deposits with stated maturity (1)		476,813		474,172		-		474,172		-
Other borrowings		85,524		86,206		-		86,206		-
Subordinated debentures		35,569		28,379		-		28,379		-
Accrued interest payable		1,118		1,118		18		1,100		-
Derivative financial instruments		1,116		1,116		-		1,116		-

December 31, 2016
Assets
Cash and due from banks	$	35,238	$	35,238	$	35,238	$	-	$	-
Interest bearing deposits		47,956		47,956		47,956		-		-
Interest bearing deposits - time		5,591		5,611		-		5,611		-
Trading securities		410		410		410		-		-
Securities available for sale		610,616		610,616		-		610,616		-
Federal Home Loan Bank and Federal
Reserve Bank Stock		15,543		NA		NA		NA		NA
Net loans and loans held for sale (2)		1,655,335		1,629,587		-		67,321		1,562,266
Accrued interest receivable		7,316		7,316		5		2,364		4,947
Derivative financial instruments		2,251		2,251		-		2,251		-

Liabilities
Deposits with no stated maturity (1)	$	1,740,601	$	1,740,601	$	1,740,601	$	-	$	-
Deposits with stated maturity (1)		485,118		483,469		-		483,469		-
Other borrowings		9,433		10,371		-		10,371		-
Subordinated debentures		35,569		25,017		-		25,017		-
Accrued interest payable		932		932		21		911		-
Derivative financial instruments		975		975		-		975		-

(1)

Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $13.2 million and $7.4 million at June 30, 2017 and December 31, 2016, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $33.4 million and $31.3 million June 30, 2017 and December 31, 2016, respectively.

(2)	Net loans and loans held for sale include $31.4 million of payment plan receivables and commercial loans held for sale at December 31, 2016.

The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal and therefore are not disclosed.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments.

Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

Contingent Liabilities	6 Months Ended
Contingent Liabilities	Jun. 30, 2017
Contingent Liabilities [Abstract]
Contingent Liabilities	13. Contingent Liabilities In December 2016, we reached a tentative settlement regarding litigation initiated against us in Wayne County, Michigan Circuit Court. The Court issued a preliminary approval of this settlement in the first quarter of 2017. This litigation concerned checking account transaction sequencing during a period from February 2009 to June 2011. Under the terms of the settlement, we have agreed to pay $2.2 million and are also responsible for class notification costs and certain other expenses which are estimated to total approximately $0.1 million (these amounts were accrued for and expensed in the fourth quarter of 2016). We expect the settlement payment to occur in the fourth quarter of 2017 or first quarter of 2018. Although, we deny any liability associated with this matter and believe we have meritorious defenses to the allegations in the complaint, given the costs and uncertainty of litigation, it was determined that this settlement was in the best interests of the organization. We are also involved in various other litigation matters in the ordinary course of business. At the present time, we do not believe any of these matters will have a significant impact on our consolidated financial position or results of operations. The aggregate amount we have accrued for losses we consider probable as a result of these litigation matters is immaterial. However, because of the inherent uncertainty of outcomes from any litigation matter, we believe it is reasonably possible we may incur losses in addition to the amounts we have accrued. At this time, we estimate the maximum amount of additional losses that are reasonably possible is insignificant. However, because of a number of factors, including the fact that certain of these litigation matters are still in their early stages, this maximum amount may change in the future. The litigation matters described in the preceding paragraph primarily include claims that have been brought against us for damages, but do not include litigation matters where we seek to collect amounts owed to us by third parties (such as litigation initiated to collect delinquent loans). These excluded, collection-related matters may involve claims or counterclaims by the opposing party or parties, but we have excluded such matters from the disclosure contained in the preceding paragraph in all cases where we believe the possibility of us paying damages to any opposing party is remote. Risks associated with the likelihood that we will not collect the full amount owed to us, net of reserves, are disclosed elsewhere in this report. In connection with the sale of Mepco (see note #15), we agreed to contractually indemnify the purchaser from certain losses it may incur, including as a result of its failure to collect certain receivables it purchased as part of the business as well as breaches of representations and warranties we made in the sale agreement, subject to various limitations. We have not accrued any liability related to these indemnification requirements in our June 30, 2017 Condensed Consolidated Statement of Financial Condition because we believe the likelihood of having to pay any amount as a result of these indemnification obligations is remote. However, if the purchaser is unable to collect the receivables it purchased from Mepco or otherwise encounters difficulties in operating the business, it is possible it could make one or more claims against us pursuant to the sale agreement. In that event, we may incur expenses in defending any such claims and/or amounts paid to such purchaser to resolve such claims. The provision for loss reimbursement on sold loans represents our estimate of incurred losses related to mortgage loans that we have sold to investors (primarily Fannie Mae, Freddie Mac and Ginnie Mae). Since we sell mortgage loans without recourse, loss reimbursements only occur in those instances where we have breached a representation or warranty or other contractual requirement related to the loan sale. The provision for loss reimbursement on sold loans was an expense of $0.02 million and zero for the three months ended June 30, 2017 and 2016, respectively and an expense (credit) of $0.05 million and $(0.02) million for the six month periods ended June 30, 2017 and 2016, respectively. The small expense provisions in 2017 are primarily due to growth in the balance of loans serviced for investors. The small credit provision for the first six months of 2016 is due primarily to the settlement of certain loss reimbursement claims at slightly lower amounts than what had been specifically reserved for at the end of the previous period. The reserve for loss reimbursements on sold mortgage loans totaled $0.5 million and $0.6 million at June 30, 2017 and December 31, 2016, respectively. This reserve is included in accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Condition.

Accumulated Other Comprehensive Loss ("AOCL")

6 Months Ended

Jun. 30, 2017

Accumulated Other Comprehensive Loss ("AOCL") [Abstract]

Accumulated Other Comprehensive Loss ("AOCL")

14. Accumulated Other Comprehensive Loss (“AOCL”)

A summary of changes in AOCL follows:

	Unrealized Gains (Losses) on Securities Available for Sale			Dispropor- tionate Tax Effects from Securities Available for Sale			Total
	(In thousands)
For the three months ended June 30,
2017
Balances at beginning of period	$	(738	)	$	(5,798	)	$	(6,536	)
Other comprehensive income before reclassifications		2,731			-			2,731
Amounts reclassified from AOCL		(7	)		-			(7	)
Net current period other comprehensive income		2,724			-			2,724
Balances at end of period	$	1,986		$	(5,798	)	$	(3,812	)

2016
Balances at beginning of period	$	999		$	(5,798	)	$	(4,799	)
Other comprehensive income before reclassifications		1,588			-			1,588
Amounts reclassified from AOCL		(72	)		-			(72	)
Net current period other comprehensive income		1,516			-			1,516
Balances at end of period	$	2,515		$	(5,798	)	$	(3,283	)

For the six months ended June 30,
2017
Balances at beginning of period	$	(3,310	)	$	(5,798	)	$	(9,108	)
Cumulative effect of change in accounting		300			-			300
Balances at beginning of period, as adjusted		(3,010	)		(5,798	)		(8,808	)
Other comprehensive income before reclassifications		5,072			-			5,072
Amounts reclassified from AOCL		(76	)		-			(76	)
Net current period other comprehensive income		4,996			-			4,996
Balances at end of period	$	1,986		$	(5,798	)	$	(3,812	)

2016
Balances at beginning of period	$	(238	)	$	(5,798	)	$	(6,036	)
Other comprehensive income before reclassifications		2,937			-			2,937
Amounts reclassified from AOCL		(184	)		-			(184	)
Net current period other comprehensive income		2,753			-			2,753
Balances at end of period	$	2,515		$	(5,798	)	$	(3,283	)

We adopted ASU 2017-08 during the first quarter of 2017 using a modified retrospective approach. As a result, accumulated other comprehensive loss as of January 1, 2017 was adjusted by $0.30 million (see note #2).

The disproportionate tax effects from securities available for sale arose due to tax effects of other comprehensive income (“OCI”) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations.

A summary of reclassifications out of each component of AOCL for the three months ended June 30 follows:

	Amount Reclassified From		Affected Line Item in Condensed
AOCL Component	AOCL		Consolidated Statements of Operations
	(In thousands)
2017
Unrealized gains on securities available for sale
	$	11	Net gains on securities
		-	Net impairment loss recognized in earnings
		11	Total reclassifications before tax
		4	Income tax expense
	$	7	Reclassifications, net of tax

2016
Unrealized gains on securities available for sale
	$	109	Net gains on securities
		-	Net impairment loss recognized in earnings
		109	Total reclassifications before tax
		37	Income tax expense
	$	72	Reclassifications, net of tax

A summary of reclassifications out of each component of AOCL for the six months ended June 30 follows:

	Amount Reclassified From		Affected Line Item in Condensed
AOCL Component	AOCL		Consolidated Statements of Operations
	(In thousands)
2017
Unrealized gains on securities available for sale
	$	117	Net gains on securities
		-	Net impairment loss recognized in earnings
		117	Total reclassifications before tax
		41	Income tax expense
	$	76	Reclassifications, net of tax

2016
Unrealized gains on securities available for sale
	$	283	Net gains on securities
		-	Net impairment loss recognized in earnings
		283	Total reclassifications before tax
		99	Income tax expense
	$	184	Reclassifications, net of tax

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

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-URI http://asc.fasb.org/extlink&oid=6522872

Payment Plan Receivables and Other Assets Held for Sale [Abstract]

Payment Plan Receivables and Other Assets Held for Sale

6 Months Ended

Jun. 30, 2017

Payment Plan Receivables and Other Assets Held for Sale

15. Payment Plan Receivables and Other Assets Held for Sale

On December 30, 2016 Mepco executed an Asset Purchase Agreement (the “APA”) with Seabury Asset Management LLC (“Seabury”). Pursuant to the terms of the APA, Mepco sold its payment plan processing business to Seabury effective May 1, 2017. We received cash totaling $33.4 million and recorded no gain or loss in 2017 as the assets were sold and the liabilities were assumed at book value.

Assets sold and liabilities assumed were as follows:

	May 1, 2017		December 31, 2016
	(In thousands)
Assets sold
Payment plan receivables	$	33,128	$	30,582
Commerical loans		525		794
Other assets		1,765		1,984
Total assets	$	35,418	$	33,360

Liabilities assumed	$	1,972	$	718

These assets and liabilities were categorized as “held for sale” in our December 31, 2016 Condensed Consolidated Statements of Financial Condition. These assets and corresponding liabilities held for sale were carried at the lower of cost or fair value on an aggregate basis. Fair value adjustments, if any, were recorded in current earnings.

New Accounting Standards (Policies)

6 Months Ended

Jun. 30, 2017

New Accounting Standards [Abstract]

New Accounting Standards

	January 1, 2017 Originally Presented			Cumulative Retrospective Adjustments			January 1, 2017 Adjusted
	(In thousands)

Deferred tax assets, net	$	32,818		$	(190	)(1)	$	32,628
Capitalized mortgage loan servicing rights	$	13,671		$	542	(1)	$	14,213
Total assets	$	2,548,950		$	352		$	2,549,302
Accumulated deficit	$	(65,657	)	$	352	(1)
				$	(300	)(2)	$	(65,605	)
Accumulated other comprehensive loss	$	(9,108	)	$	300	(2)	$	(8,808	)
Total Shareholders’ Equity	$	248,980		$	352		$	249,332
Total Liabilities and Shareholders’ Equity	$	2,548,950		$	352		$	2,549,302

(1)	Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights.

(2)	Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08.

New Accounting Standards (Tables)

6 Months Ended

Jun. 30, 2017

New Accounting Standards [Abstract]

Condensed consolidated statement of financial position to reflect cumulative effect of adjustments

The impact of the adoption of the fair value method is summarized in the table below. The adjustments below reflect the recording of a $0.54 million increase in the fair value of our capitalized mortgage loan servicing rights with a $0.19 million reduction in deferred tax assets, net for a net impact on accumulated deficit and total equity of $0.35 million.

	January 1, 2017 Originally Presented			Cumulative Retrospective Adjustments			January 1, 2017 Adjusted
	(In thousands)

Deferred tax assets, net	$	32,818		$	(190	)(1)	$	32,628
Capitalized mortgage loan servicing rights	$	13,671		$	542	(1)	$	14,213
Total assets	$	2,548,950		$	352		$	2,549,302
Accumulated deficit	$	(65,657	)	$	352	(1)
				$	(300	)(2)	$	(65,605	)
Accumulated other comprehensive loss	$	(9,108	)	$	300	(2)	$	(8,808	)
Total Shareholders’ Equity	$	248,980		$	352		$	249,332
Total Liabilities and Shareholders’ Equity	$	2,548,950		$	352		$	2,549,302

(1)	Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights.

(2)	Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08.

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

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Securities (Tables)

6 Months Ended

Jun. 30, 2017

Securities [Abstract]

Investments in a continuous unrealized loss position

Securities available for sale consist of the following:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
June 30, 2017
U.S. agency	$	28,179	$	248	$	29	$	28,398
U.S. agency residential mortgage-backed		143,670		1,309		495		144,484
U.S. agency commercial mortgage-backed		11,573		107		103		11,577
Private label mortgage-backed		25,150		426		244		25,332
Other asset backed		126,708		327		137		126,898
Obligations of states and political subdivisions		178,729		1,787		752		179,764
Corporate		61,629		856		76		62,409
Trust preferred		2,926		-		165		2,761
Foreign government		2,106		-		4		2,102
Total	$	580,670	$	5,060	$	2,005	$	583,725

December 31, 2016
U.S. agency	$	28,909	$	159	$	80	$	28,988
U.S. agency residential mortgage-backed		156,053		1,173		937		156,289
U.S. agency commercial mortgage-backed		12,799		28		195		12,632
Private label mortgage-backed		35,035		216		524		34,727
Other asset backed		146,829		271		391		146,709
Obligations of states and political subdivisions		175,180		478		4,759		170,899
Corporate		56,356		223		399		56,180
Trust preferred		2,922		-		343		2,579
Foreign government		1,626		-		13		1,613
Total	$	615,709	$	2,548	$	7,641	$	610,616

Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:

	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)

June 30, 2017
U.S. agency	$	2,841	$	17	$	4,920	$	12	$	7,761	$	29
U.S. agency residential mortgage-backed		32,667		260		21,433		235		54,100		495
U.S. agency commercial mortgage-backed		6,147		102		122		1		6,269		103
Private label mortgage-backed		5,002		66		1,143		178		6,145		244
Other asset backed		25,998		38		11,035		99		37,033		137
Obligations of states and political subdivisions		50,302		611		6,788		141		57,090		752
Corporate		10,281		51		1,978		25		12,259		76
Trust preferred		-		-		2,761		165		2,761		165
Foreign government		2,102		4		-		-		2,102		4
Total	$	135,340	$	1,149	$	50,180	$	856	$	185,520	$	2,005

December 31, 2016
U.S. agency	$	4,179	$	41	$	8,217	$	39	$	12,396	$	80
U.S. agency residential mortgage-backed		62,524		732		20,857		205		83,381		937
U.S. agency commercial mortgage-backed		6,079		194		143		1		6,222		195
Private label mortgage-backed		20,545		281		1,413		243		21,958		524
Other asset backed		52,958		172		17,763		219		70,721		391
Obligations of states and political subdivisions		113,078		4,014		14,623		745		127,701		4,759
Corporate		25,546		292		2,810		107		28,356		399
Trust preferred		-		-		2,579		343		2,579		343
Foreign government		1,613		13		-		-		1,613		13
Total	$	286,522	$	5,739	$	68,405	$	1,902	$	354,927	$	7,641

Trust preferred securities

The following table breaks out our trust preferred securities in further detail as of June 30, 2017 and December 31, 2016:

	June 30, 2017					December 31, 2016
	Fair Value		Net Unrealized Loss			Fair Value		Net Unrealized Loss
	(In thousands)

Trust preferred securities
Rated issues	$	1,844	$	(82	)	$	1,800	$	(123	)
Unrated issues		917		(83	)		779		(220	)

Private label mortgage backed securities below investment grade

At June 30, 2017, three private label mortgage-backed securities had credit related OTTI and are summarized as follows:

	Senior Security		Super Senior Security		Senior Support Security		Total
	(In thousands)

As of June 30, 2017
Fair value	$	1,133	$	955	$	71	$	2,159
Amortized cost		1,003		888		-		1,891
Non-credit unrealized loss		-		-		-		-
Unrealized gain		130		67		71		268
Cumulative credit related OTTI		757		457		380		1,594

Credit losses recognized in earnings on securities available for sale

A roll forward of credit losses recognized in earnings on securities available for sale follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(In thousands)
Balance at beginning of period	$	1,844	$	1,844	$	1,844	$	1,844
Additions to credit losses on securities for which no previous OTTI was recognized		-		-		-		-
Increases to credit losses on securities for which OTTI was previously recognized		-		-		-		-
Balance at end of period	$	1,844	$	1,844	$	1,844	$	1,844

Amortized cost and fair value of securities available for sale by contractual maturity

The amortized cost and fair value of securities available for sale at June 30, 2017, by contractual maturity, follow:

	Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	30,555	$	30,608
Maturing after one year but within five years		99,193		99,956
Maturing after five years but within ten years		86,846		88,012
Maturing after ten years		56,975		56,858
		273,569		275,434
U.S. agency residential mortgage-backed		143,670		144,484
U.S. agency commercial mortgage-backed		11,573		11,577
Private label mortgage-backed		25,150		25,332
Other asset backed		126,708		126,898
Total	$	580,670	$	583,725

Gains and losses realized on sale of securities available for sale

A summary of proceeds from the sale of securities available for sale and gains and losses for the six month periods ending June 30, follows:

			Realized
	Proceeds		Gains		Losses
	(In thousands)
2017	$	7,830	$	117	$	-
2016		55,362		336		53

Loans (Tables)

6 Months Ended

Jun. 30, 2017

Analysis of allowance for loan losses by portfolio segment

An analysis of the allowance for loan losses by portfolio segment for the three months ended June 30, follows:

	Commercial			Mortgage			Installment			Payment Plan Receivables(1)			Subjective Allocation		Total
	(In thousands)
2017
Balance at beginning of period	$	5,088		$	8,109		$	911		$	-		$	5,930	$	20,038
Additions (deductions)
Provision for loan losses		(39	)		38			73			-			511		583
Recoveries credited to the allowance		202			191			264			-			-		657
Loans charged against the allowance		(151	)		(193	)		(348	)		-			-		(692	)
Balance at end of period	$	5,100		$	8,145		$	900		$	-		$	6,441	$	20,586

2016
Balance at beginning of period	$	5,622		$	10,296		$	1,161		$	53		$	5,363	$	22,495
Additions (deductions)
Provision for loan losses		(663	)		(359	)		126			(1	)		163		(734	)
Recoveries credited to the allowance		1,114			294			351			-			-		1,759
Loans charged against the allowance		(34	)		(275	)		(499	)		-			-		(808	)
Balance at end of period	$	6,039		$	9,956		$	1,139		$	52		$	5,526	$	22,712

(1) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15.

An analysis of the allowance for loan losses by portfolio segment for the six months ended June 30, follows:

	Commercial			Mortgage			Installment			Payment Plan Receivables(1)			Subjective Allocation		Total
	(In thousands)
2017
Balance at beginning of period	$	4,880		$	8,681		$	1,011		$	-		$	5,662	$	20,234
Additions (deductions)
Provision for loan losses		(100	)		(661	)		206			-			779		224
Recoveries credited to the allowance		606			677			503			-			-		1,786
Loans charged against the allowance		(286	)		(552	)		(820	)		-			-		(1,658	)
Balance at end of period	$	5,100		$	8,145		$	900		$	-		$	6,441	$	20,586

2016
Balance at beginning of period	$	5,670		$	10,391		$	1,181		$	56		$	5,272	$	22,570
Additions (deductions)
Provision for loan losses		(1,067	)		(638	)		191			(4	)		254		(1,264	)
Recoveries credited to the allowance		1,470			676			572			-			-		2,718
Loans charged against the allowance		(34	)		(473	)		(805	)		-			-		(1,312	)
Balance at end of period	$	6,039		$	9,956		$	1,139		$	52		$	5,526	$	22,712

(1) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15.

Allowance for loan losses and recorded investment in loans by portfolio segment

Allowance for loan losses and recorded investment in loans by portfolio segment follows:

	Commercial		Mortgage		Installment		Subjective Allocation		Total
	(In thousands)
June 30, 2017
Allowance for loan losses
Individually evaluated for impairment	$	1,094	$	5,873	$	277	$	-	$	7,244
Collectively evaluated for impairment		4,006		2,272		623		6,441		13,342
Total ending allowance balance	$	5,100	$	8,145	$	900	$	6,441	$	20,586

Loans
Individually evaluated for impairment	$	11,351	$	56,106	$	4,437			$	71,894
Collectively evaluated for impairment		819,442		621,015		304,762				1,745,219
Total loans recorded investment		830,793		677,121		309,199				1,817,113
Accrued interest included in recorded investment		2,015		2,622		799				5,436
Total loans	$	828,778	$	674,499	$	308,400			$	1,811,677

December 31, 2016
Allowance for loan losses
Individually evaluated for impairment	$	2,244	$	6,579	$	329	$	-	$	9,152
Collectively evaluated for impairment		2,636		2,102		682		5,662		11,082
Total ending allowance balance	$	4,880	$	8,681	$	1,011	$	5,662	$	20,234

Loans
Individually evaluated for impairment	$	15,767	$	59,151	$	4,913			$	79,831
Collectively evaluated for impairment		790,228		481,828		261,474				1,533,530
Total loans recorded investment		805,995		540,979		266,387				1,613,361
Accrued interest included in recorded investment		1,978		2,364		771				5,113
Total loans	$	804,017	$	538,615	$	265,616			$	1,608,248

Loans on non-accrual status and past due more than 90 days

Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow:

	90+ and Still Accruing		Non- Accrual		Total Non- Performing Loans
	(In thousands)
June 30, 2017
Commercial
Income producing - real estate	$	-	$	203	$	203
Land, land development and construction - real estate		-		10		10
Commercial and industrial		-		541		541
Mortgage
1-4 family		-		5,481		5,481
Resort lending		-		1,043		1,043
Home equity - 1st lien		-		198		198
Home equity - 2nd lien		-		312		312
Purchased loans		-		-		-
Installment
Home equity - 1st lien		-		203		203
Home equity - 2nd lien		-		308		308
Boat lending		-		93		93
Recreational vehicle lending		-		20		20
Other		-		130		130
Total recorded investment	$	-	$	8,542	$	8,542
Accrued interest included in recorded investment	$	-	$	-	$	-
December 31, 2016
Commercial
Income producing - real estate	$	-	$	628	$	628
Land, land development and construction - real estate		-		105		105
Commercial and industrial		-		4,430		4,430
Mortgage
1-4 family		-		5,248		5,248
Resort lending		-		1,507		1,507
Home equity - 1st lien		-		222		222
Home equity - 2nd lien		-		317		317
Purchased loans		-		-		-
Installment
Home equity - 1st lien		-		266		266
Home equity - 2nd lien		-		289		289
Boat lending		-		219		219
Recreational vehicle lending		-		21		21
Other		-		112		112
Total recorded investment	$	-	$	13,364	$	13,364
Accrued interest included in recorded investment	$	-	$	-	$	-

Aging analysis of loans by class

An aging analysis of loans by class follows:

	Loans Past Due								Loans not		Total
	30-59 days		60-89 days		90+ days		Total		Past Due		Loans
	(In thousands)
June 30, 2017
Commercial
Income producing - real estate	$	36	$	-	$	30	$	66	$	280,018	$	280,084
Land, land development and construction - real estate		-		-		-		-		58,353		58,353
Commercial and industrial		254		-		121		375		491,981		492,356
Mortgage
1-4 family		1,894		1,007		5,481		8,382		448,747		457,129
Resort lending		136		264		1,043		1,443		94,764		96,207
Home equity - 1st lien		60		76		198		334		33,697		34,031
Home equity - 2nd lien		644		177		312		1,133		52,598		53,731
Purchased loans		5		4		-		9		36,014		36,023
Installment
Home equity - 1st lien		124		60		203		387		10,589		10,976
Home equity - 2nd lien		163		140		308		611		10,791		11,402
Boat lending		173		12		93		278		126,150		126,428
Recreational vehicle lending		50		13		20		83		89,132		89,215
Other		130		44		130		304		70,874		71,178
Total recorded investment	$	3,669	$	1,797	$	7,939	$	13,405	$	1,803,708	$	1,817,113
Accrued interest included in recorded investment	$	44	$	34	$	-	$	78	$	5,358	$	5,436

December 31, 2016
Commercial
Income producing - real estate	$	-	$	-	$	383	$	383	$	287,255	$	287,638
Land, land development and construction - real estate		74		-		31		105		51,670		51,775
Commercial and industrial		100		1,385		66		1,551		465,031		466,582
Mortgage
1-4 family		2,361		869		5,248		8,478		306,063		314,541
Resort lending		-		-		1,507		1,507		101,541		103,048
Home equity - 1st lien		149		-		222		371		28,645		29,016
Home equity - 2nd lien		470		218		317		1,005		54,232		55,237
Purchased loans		13		2		-		15		39,122		39,137
Installment
Home equity - 1st lien		311		48		266		625		12,025		12,650
Home equity - 2nd lien		238		41		289		568		13,390		13,958
Boat lending		184		33		219		436		102,489		102,925
Recreational vehicle lending		68		33		21		122		74,413		74,535
Other		289		30		112		431		61,888		62,319
Total recorded investment	$	4,257	$	2,659	$	8,681	$	15,597	$	1,597,764	$	1,613,361
Accrued interest included in recorded investment	$	45	$	19	$	-	$	64	$	5,049	$	5,113

Impaired loans

Impaired loans are as follows:

	June 30, 2017		December 31, 2016
Impaired loans with no allocated allowance	(In thousands)
TDR	$	602	$	1,782
Non - TDR		-		1,107
Impaired loans with an allocated allowance
TDR - allowance based on collateral		2,375		3,527
TDR - allowance based on present value cash flow		68,350		72,613
Non - TDR - allowance based on collateral		262		491
Total impaired loans	$	71,589	$	79,520

Amount of allowance for loan losses allocated
TDR - allowance based on collateral	$	683	$	1,868
TDR - allowance based on present value cash flow		6,525		7,146
Non - TDR - allowance based on collateral		36		138
Total amount of allowance for loan losses allocated	$	7,244	$	9,152

Impaired loans by class are as follows (1):

	June 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:	(In thousands)
Commercial
Income producing - real estate	$	-	$	-	$	-	$	517	$	768	$	-
Land, land development & construction-real estate		-		-		-		31		709		-
Commercial and industrial		354		352		-		2,341		3,261		-
Mortgage
1-4 family		251		915		-		2		387		-
Resort lending		-		-		-		-		-		-
Home equity - 1st lien		-		-		-		-		-		-
Home equity - 2nd lien		-		-		-		-		-		-
Installment
Home equity - 1st lien		1		72		-		-		66		-
Home equity - 2nd lien		-		-		-		-		-		-
Boat lending		-		-		-		-		-		-
Recreational vehicle lending		-		-		-		-		-		-
Other		-		-		-		-		-		-
		606		1,339		-		2,891		5,191		-
With an allowance recorded:
Commercial
Income producing - real estate		7,647		7,835		594		7,737		7,880		554
Land, land development & construction-real estate		172		199		11		239		244		36
Commercial and industrial		3,178		3,256		489		4,902		5,246		1,654
Mortgage
1-4 family		39,194		40,728		3,590		41,701		43,479		4,100
Resort lending		16,251		16,318		2,249		16,898		16,931		2,453
Home equity - 1st lien		230		239		10		235		242		10
Home equity - 2nd lien		180		214		24		315		398		16
Installment
Home equity - 1st lien		1,825		1,952		87		1,994		2,117		118
Home equity - 2nd lien		2,147		2,173		165		2,415		2,443		182
Boat lending		1		6		1		1		6		-
Recreational vehicle lending		102		102		5		109		108		6
Other		361		394		19		394		426		23
		71,288		73,416		7,244		76,940		79,520		9,152
Total
Commercial
Income producing - real estate		7,647		7,835		594		8,254		8,648		554
Land, land development & construction-real estate		172		199		11		270		953		36
Commercial and industrial		3,532		3,608		489		7,243		8,507		1,654
Mortgage
1-4 family		39,445		41,643		3,590		41,703		43,866		4,100
Resort lending		16,251		16,318		2,249		16,898		16,931		2,453
Home equity - 1st lien		230		239		10		235		242		10
Home equity - 2nd lien		180		214		24		315		398		16
Installment
Home equity - 1st lien		1,826		2,024		87		1,994		2,183		118
Home equity - 2nd lien		2,147		2,173		165		2,415		2,443		182
Boat lending		1		6		1		1		6		-
Recreational vehicle lending		102		102		5		109		108		6
Other		361		394		19		394		426		23
Total	$	71,894	$	74,755	$	7,244	$	79,831	$	84,711	$	9,152

Accrued interest included in recorded investment	$	305					$	311

(1) There were no impaired purchased mortgage loans at June 30, 2017 or December 31, 2016.

Average recorded investment in and interest income earned on impaired loans by class

Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending June 30, follows (1):

	2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:	(In thousands)
Commercial
Income producing - real estate	$	185	$	-	$	673	$	-
Land, land development & construction-real estate		-		-		335		-
Commercial and industrial		177		8		609		-
Mortgage
1-4 family		126		5		11		5
Resort lending		-		-		-		-
Home equity - 1st lien		-		-		-		-
Home equity - 2nd lien		-		-		-		-
Installment
Home equity - 1st lien		1		2		1		-
Home equity - 2nd lien		-		-		7		-
Boat lending		-		-		-		-
Recreational vehicle lending		-		-		-		-
Other		-		-		-		-
		489		15		1,636		5
With an allowance recorded:
Commercial
Income producing - real estate		7,694		104		8,210		100
Land, land development & construction-real estate		170		2		1,664		13
Commercial and industrial		3,237		37		6,203		59
Mortgage
1-4 family		39,646		494		46,041		475
Resort lending		16,471		150		17,689		159
Home equity - 1st lien		232		2		243		2
Home equity - 2nd lien		186		1		181		4
Installment
Home equity - 1st lien		1,855		33		2,230		42
Home equity - 2nd lien		2,228		35		2,751		41
Boat lending		1		-		2		-
Recreational vehicle lending		104		2		117		1
Other		369		6		442		9
		72,193		866		85,773		905
Total
Commercial
Income producing - real estate		7,879		104		8,883		100
Land, land development & construction-real estate		170		2		1,999		13
Commercial and industrial		3,414		45		6,812		59
Mortgage
1-4 family		39,772		499		46,052		480
Resort lending		16,471		150		17,689		159
Home equity - 1st lien		232		2		243		2
Home equity - 2nd lien		186		1		181		4
Installment
Home equity - 1st lien		1,856		35		2,231		42
Home equity - 2nd lien		2,228		35		2,758		41
Boat lending		1		-		2		-
Recreational vehicle lending		104		2		117		1
Other		369		6		442		9
Total	$	72,682	$	881	$	87,409	$	910

(1)	There were no impaired purchased mortgage loans during the three month periods ended June 30, 2017 and 2016, respectively.

Average recorded investment in and interest income earned on impaired loans by class for the six month periods ending June 30, follows (1):

	2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:	(In thousands)
Commercial
Income producing - real estate	$	296	$	-	$	662	$	2
Land, land development & construction-real estate		10		-		496		7
Commercial and industrial		898		8		821		21
Mortgage
1-4 family		85		9		15		6
Resort lending		-		-		-		-
Home equity - 1st lien		-		-		-		-
Home equity - 2nd lien		-		-		-		-
Installment
Home equity - 1st lien		-		3		-		1
Home equity - 2nd lien		-		-		5		-
Boat lending		-		-		-		-
Recreational vehicle lending		-		-		-		-
Other		-		-		-		-
		1,289		20		1,999		37
With an allowance recorded:
Commercial
Income producing - real estate		7,708		209		8,266		207
Land, land development & construction-real estate		193		4		1,673		26
Commercial and industrial		3,792		72		5,501		82
Mortgage
1-4 family		40,331		958		46,625		977
Resort lending		16,613		311		17,842		319
Home equity - 1st lien		233		4		218		4
Home equity - 2nd lien		229		3		202		5
Installment
Home equity - 1st lien		1,901		67		2,274		84
Home equity - 2nd lien		2,290		70		2,810		85
Boat lending		1		-		2		-
Recreational vehicle lending		106		3		119		3
Other		377		13		451		16
		73,774		1,714		85,983		1,808
Total
Commercial
Income producing - real estate		8,004		209		8,928		209
Land, land development & construction-real estate		203		4		2,169		33
Commercial and industrial		4,690		80		6,322		103
Mortgage
1-4 family		40,416		967		46,640		983
Resort lending		16,613		311		17,842		319
Home equity - 1st lien		233		4		218		4
Home equity - 2nd lien		229		3		202		5
Installment
Home equity - 1st lien		1,901		70		2,274		85
Home equity - 2nd lien		2,290		70		2,815		85
Boat lending		1		-		2		-
Recreational vehicle lending		106		3		119		3
Other		377		13		451		16
Total	$	75,063	$	1,734	$	87,982	$	1,845

(1)	There were no impaired purchased mortgage loans during the six month periods ended June 30, 2017 and 2016, respectively.

Troubled debt restructurings

Troubled debt restructurings follow:

	June 30, 2017
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDRs	$	10,551	$	56,100		$	66,651
Non-performing TDRs(2)		492		4,184	⁽³⁾		4,676
Total	$	11,043	$	60,284		$	71,327

	December 31, 2016
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDRs	$	10,560	$	59,726		$	70,286
Non-performing TDRs(2)		3,565		4,071	⁽³⁾		7,636
Total	$	14,125	$	63,797		$	77,922

(1)	Retail loans include mortgage and installment loan segments.

(2)	Included in non-performing loans table above.

(3)	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

Troubled debt restructuring during the period

Loans that have been classified as troubled debt restructurings during the three-month periods ended June 30 follow(1):

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance
	(Dollars in thousands)
2017
Commercial
Income producing - real estate		-	$	-	$	-
Land, land development & construction-real estate		-		-		-
Commercial and industrial		9		653		653
Mortgage
1-4 family		1		32		32
Resort lending		-		-		-
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		3		204		205
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		-		-		-
Total		13	$	889	$	890

2016
Commercial
Income producing - real estate		-	$	-	$	-
Land, land development & construction-real estate		-		-		-
Commercial and industrial		-		-		-
Mortgage
1-4 family		1		109		110
Resort lending		-		-		-
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		3		29		29
Home equity - 2nd lien		2		71		73
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		1		12		12
Total		7	$	221	$	224

(1)	There were no purchased mortgage loans classified as troubled debt restructurings during the three month periods ended June 30, 2017 and 2016, respectively.

Loans that have been classified as troubled debt restructurings during the six-month periods ended June 30 follow(1):

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance
	(Dollars in thousands)
2017
Commercial
Income producing - real estate		-	$	-	$	-
Land, land development & construction-real estate		-		-		-
Commercial and industrial		12		786		786
Mortgage
1-4 family		2		49		49
Resort lending		1		189		189
Home equity - 1st lien		-		-		-
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		2		34		37
Home equity - 2nd lien		5		249		251
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		-		-		-
Total		22	$	1,307	$	1,312

2016
Commercial
Income producing - real estate		2	$	110	$	110
Land, land development & construction-real estate		-		-		-
Commercial and industrial		4		1,758		1,758
Mortgage
1-4 family		3		192		263
Resort lending		1		116		117
Home equity - 1st lien		1		107		78
Home equity - 2nd lien		-		-		-
Installment
Home equity - 1st lien		4		59		60
Home equity - 2nd lien		4		126		129
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		1		12		12
Total		20	$	2,480	$	2,527

(1)	There were no purchased mortgage loans classified as troubled debt restructurings during the six month periods ended June 30, 2017 and 2016, respectively.

Summary of loan ratings by loan class

The following table summarizes loan ratings by loan class for our commercial loan segment:

	Commercial
	Non-watch 1-6		Watch 7-8		Substandard Accrual 9		Non- Accrual 10-11		Total
					(In thousands)
June 30, 2017
Income producing - real estate	$	276,218	$	3,344	$	320	$	202	$	280,084
Land, land development and construction - real estate		58,278		65		-		10		58,353
Commercial and industrial		475,372		13,171		3,272		541		492,356
Total	$	809,868	$	16,580	$	3,592	$	753	$	830,793
Accrued interest included in total	$	1,952	$	48	$	15	$	-	$	2,015

December 31, 2016
Income producing - real estate	$	282,886	$	3,787	$	337	$	628	$	287,638
Land, land development and construction - real estate		51,603		67		-		105		51,775
Commercial and industrial		449,365		9,788		2,998		4,431		466,582
Total	$	783,854	$	13,642	$	3,335	$	5,164	$	805,995
Accrued interest included in total	$	1,915	$	52	$	11	$	-	$	1,978

For each of our mortgage and installment segment classes, we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually.

The following tables summarize credit scores by loan class for our mortgage and installment loan segments:

	Mortgage (1)
	1-4 Family		Resort Lending		Home Equity 1st Lien		Home Equity 2nd Lien		Purchased Loans		Total
	(In thousands)
June 30, 2017
800 and above	$	51,751	$	11,770	$	7,477	$	8,575	$	8,122	$	87,695
750-799		175,169		34,856		14,175		19,038		19,302		262,540
700-749		98,924		25,749		6,019		12,087		8,041		150,820
650-699		69,420		13,070		3,501		7,359		432		93,782
600-649		27,633		4,790		1,080		2,471		-		35,974
550-599		15,598		2,790		478		1,555		-		20,421
500-549		8,948		1,407		543		1,340		-		12,238
Under 500		3,839		90		253		182		-		4,364
Unknown		5,847		1,685		505		1,124		126		9,287
Total	$	457,129	$	96,207	$	34,031	$	53,731	$	36,023	$	677,121
Accrued interest included in total	$	1,761	$	379	$	137	$	244	$	101	$	2,622

December 31, 2016
800 and above	$	36,534	$	10,484	$	6,048	$	8,392	$	8,462	$	69,920
750-799		102,382		41,999		10,006		20,113		20,984		195,484
700-749		69,337		24,727		5,706		12,360		9,115		121,245
650-699		50,621		13,798		4,106		8,167		437		77,129
600-649		25,270		5,769		1,674		3,067		-		35,780
550-599		13,747		3,030		455		1,699		-		18,931
500-549		9,215		1,438		486		981		-		12,120
Under 500		5,145		92		255		279		-		5,771
Unknown		2,290		1,711		280		179		139		4,599
Total	$	314,541	$	103,048	$	29,016	$	55,237	$	39,137	$	540,979
Accrued interest included in total	$	1,466	$	450	$	111	$	226	$	111	$	2,364

(1) Credit scores have been updated within the last twelve months.

	Installment(1)
	Home Equity 1st Lien		Home Equity 2nd Lien		Boat Lending		Recreational Vehicle Lending		Other		Total
	(In thousands)
June 30, 2017
800 and above	$	1,182	$	925	$	26,334	$	25,972	$	10,384	$	64,797
750-799		2,168		3,030		64,018		44,949		24,758		138,923
700-749		1,713		2,438		24,380		12,980		14,671		56,182
650-699		2,312		1,991		8,913		3,825		8,894		25,935
600-649		1,506		1,506		1,754		863		2,420		8,049
550-599		1,295		945		510		255		956		3,961
500-549		677		501		289		189		513		2,169
Under 500		97		59		66		12		133		367
Unknown		26		7		164		170		8,449		8,816
Total	$	10,976	$	11,402	$	126,428	$	89,215	$	71,178	$	309,199
Accrued interest included in total	$	44	$	49	$	291	$	215	$	200	$	799

December 31, 2016
800 and above	$	1,354	$	1,626	$	21,422	$	23,034	$	8,911	$	56,347
750-799		2,478		3,334		50,508		35,827		21,918		114,065
700-749		1,920		2,686		20,045		11,049		13,183		48,883
650-699		2,852		2,541		7,559		3,205		8,913		25,070
600-649		1,691		1,775		1,846		821		2,269		8,402
550-599		1,231		1,063		882		280		833		4,289
500-549		981		692		440		189		511		2,813
Under 500		114		220		73		16		211		634
Unknown		29		21		150		114		5,570		5,884
Total	$	12,650	$	13,958	$	102,925	$	74,535	$	62,319	$	266,387
Accrued interest included in total	$	54	$	59	$	264	$	203	$	191	$	771

(1) Credit scores have been updated within the last twelve months.

Shareholders' Equity and Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2017

Shareholders' Equity and Earnings Per Common Share [Abstract]

Reconciliation of basic and diluted net income per share

A reconciliation of basic and diluted net income per common share follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(In thousands, except per share amounts)
Net income	$	5,931	$	6,438	$	11,905	$	10,538

Weighted average shares outstanding (1)		21,331		21,281		21,320		21,516
Effect of stock options		143		148		147		150
Stock units for deferred compensation plan for non-employee directors		119		114		119		114
Performance share units		54		41		57		37
Restricted stock units		-		55		-		70
Weighted average shares outstanding for calculation of diluted earnings per share		21,647		21,639		21,643		21,887

Net income per common share
Basic (1)	$	0.28	$	0.30	$	0.56	$	0.49
Diluted	$	0.27	$	0.30	$	0.55	$	0.48

(1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Financial Instruments [Abstract]

Derivative financial instruments according to type of hedge designation

Our derivative financial instruments according to the type of hedge in which they are designated follows:

	June 30, 2017
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	44,985		0.1	$	1,082
Mandatory commitments to sell mortgage loans		80,760		0.1		24
Pay-fixed interest rate swap agreements		54,127		8.0		-
Pay-variable interest rate swap agreements		54,127		8.0		-
Purchased options		3,119		4.3		272
Written options		3,119		4.3		(272	)
Total	$	240,237		3.8	$	1,106

	December 31, 2016
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
No hedge designation
Rate-lock mortgage loan commitments	$	26,658		0.1	$	646
Mandatory commitments to sell mortgage loans		61,954		0.1		630
Pay-fixed interest rate swap agreements		46,121		8.6		249
Pay-variable interest rate swap agreements		46,121		8.6		(249	)
Purchased options		3,119		4.5		238
Written options		3,119		4.5		(238	)
Total	$	187,092		4.4	$	1,276

Fair value of derivative instruments

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets	$	1,082	Other assets	$	646	Other liabilities	$	-	Other liabilities	$	-
Mandatory commitments to sell mortgage loans	Other assets		24	Other assets		630	Other liabilities		-	Other liabilities		-
Pay-fixed interest rate swap agreements	Other assets		422	Other assets		493	Other liabilities		422	Other liabilities		244
Pay-variable interest rate swap agreements	Other assets		422	Other assets		244	Other liabilities		422	Other liabilities		493
Purchased options	Other assets		272	Other assets		238	Other liabilities		-	Other liabilities		-
Written options	Other assets		-	Other assets		-	Other liabilities		272	Other liabilities		238
Total derivatives		$	2,222		$	2,251		$	1,116		$	975

Effect of derivative financial instruments on condensed consolidated statement of operation

The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows:

		Gain (Loss) Recognized in Income
	Location of Gain (Loss)	Three Month Periods Ended June 30,						Six Month Periods Ended June 30,
	Recognized in Income	2017			2016			2017			2016
		(In thousands)						(In thousands)
No hedge designation
Rate-lock mortgage loan commitments	Net gains on mortgage loans	$	65		$	130		$	436		$	349
Mandatory commitments to sell mortgage loans	Net gains on mortgage loans		190			(240	)		(606	)		(446	)
Pay-fixed interest rate swap agreements	Interest income		(359	)		(590	)		(249	)		(1,708	)
Pay-variable interest rate swap agreements	Interest income		359			590			249			1,708
Purchased options	Interest expense		(35	)		3			34			81
Written options	Interest expense		35			(3	)		(34	)		(81	)
Total		$	255		$	(110	)	$	(170	)	$	(97	)

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2017

Intangible Assets [Abstract]

Other intangible assets, net of amortization

The following table summarizes intangible assets, net of amortization:

	June 30, 2017				December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)

Amortized intangible assets - core deposits	$	6,118	$	4,359	$	6,118	$	4,186

Estimated amortization of other intangible assets

Amortization of other intangibles has been estimated through 2022 in the following table.

	(In thousands)

Six months ending December 31, 2017	$	173
2018		346
2019		346
2020		346
2021		346
2022		202
Total	$	1,759

Share Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Share Based Compensation [Abstract]

Summary of outstanding stock option grants and transactions

A summary of outstanding stock option grants and related transactions follows:

	Number of Shares			Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregated Intrinsic Value
								(In thousands)
Outstanding at January 1, 2017		211,018		$	5.05
Granted		-
Exercised		(26,224	)		3.76
Forfeited		-
Expired		-
Outstanding at June 30, 2017		184,794		$	5.23		4.6	$	3,053

Vested and expected to vest at June 30, 2017		184,794		$	5.23		4.6	$	3,053
Exercisable at June 30, 2017		184,794		$	5.23		4.6	$	3,053

Summary of non-vested restricted stock, restricted stock units and PSU's

A summary of outstanding non-vested restricted stock and PSUs and related transactions follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2017		296,422		$	14.52
Granted		68,473			21.07
Vested		(56,681	)		14.85
Forfeited		(7,321	)		15.73
Outstanding at June 30, 2017		300,893		$	15.86

Information regarding options exercised

Certain information regarding options exercised during the periods follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(In thousands)
Intrinsic value	$	195	$	60	$	474	$	177
Cash proceeds received	$	33	$	27	$	99	$	59
Tax benefit realized	$	68	$	21	$	166	$	62

Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2017

Regulatory Matters [Abstract]

Actual capital amounts and ratios

Our actual capital amounts and ratios follow:

	Actual					Minimum for Adequately Capitalized Institutions					Minimum for Well-Capitalized Institutions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)

June 30, 2017
Total capital to risk-weighted assets
Consolidated	$	298,454		15.45	%	$	154,583		8.00	%	NA		NA
Independent Bank		277,429		14.37			154,410		8.00		$	193,013		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	276,978		14.33	%	$	115,937		6.00	%	NA		NA
Independent Bank		255,953		13.26			115,808		6.00		$	154,410		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	245,795		12.72	%	$	86,953		4.50	%	NA		NA
Independent Bank		255,953		13.26			86,856		4.50		$	125,459		6.50	%

Tier 1 capital to average assets
Consolidated	$	276,978		10.74	%	$	103,173		4.00	%	NA		NA
Independent Bank		255,953		9.93			103,115		4.00		$	128,894		5.00	%

December 31, 2016
Total capital to risk-weighted assets
Consolidated	$	286,289		15.86	%	$	144,413		8.00	%	NA		NA
Independent Bank		270,855		15.02			144,223		8.00		$	180,279		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	265,405		14.70	%	$	108,309		6.00	%	NA		NA
Independent Bank		249,971		13.87			108,167		6.00		$	144,223		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	238,996		13.24	%	$	81,232		4.50	%	NA		NA
Independent Bank		249,971		13.87			81,126		4.50		$	117,181		6.50	%

Tier 1 capital to average assets
Consolidated	$	265,405		10.50	%	$	101,112		4.00	%	NA		NA
Independent Bank		249,971		9.90			101,019		4.00		$	126,274		5.00	%

NA - Not applicable

Components of regulatory capital

The components of our regulatory capital are as follows:

	Consolidated						Independent Bank
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(In thousands)
Total shareholders’ equity	$	262,453		$	248,980		$	266,093		$	258,814
Add (deduct)
Accumulated other comprehensive (gain) loss for regulatory purposes		(1,985	)		3,310			(1,985	)		3,310
Intangible assets		(1,407	)		(1,159	)		(1,407	)		(1,159	)
Disallowed deferred tax assets		(13,266	)		(12,135	)		(6,748	)		(10,994	)
Common equity tier 1 capital		245,795			238,996			255,953			249,971
Qualifying trust preferred securities		34,500			34,500			-			-
Disallowed deferred tax assets		(3,317	)		(8,091	)		-			-
Tier 1 capital		276,978			265,405			255,953			249,971

Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets		21,476			20,884			21,476			20,884
Total risk-based capital	$	298,454		$	286,289		$	277,429		$	270,855

Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value

Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows:

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
June 30, 2017:
Measured at Fair Value on a Recurring Basis:
Assets
Trading securities	$	286	$	286	$	-	$	-
Securities available for sale
U.S. agency		28,398		-		28,398		-
U.S. agency residential mortgage-backed		144,484		-		144,484		-
U.S. agency commercial mortgage-backed		11,577		-		11,577		-
Private label mortgage-backed		25,332		-		25,332		-
Other asset backed		126,898		-		126,898		-
Obligations of states and political subdivisions		179,764		-		179,764		-
Corporate		62,409		-		62,409		-
Trust preferred		2,761		-		2,761		-
Foreign government		2,102		-		2,102		-
Loans held for sale		45,693		-		45,693		-
Capitalized mortgage loan servicing rights		14,515		-		-		14,515
Derivatives (1)		2,222		-		2,222		-
Liabilities
Derivatives (2)		1,116		-		1,116		-

Measured at Fair Value on a Non-recurring basis:
Assets
Impaired loans (3)
Commercial
Income producing - real estate		287		-		-		287
Land, land development & construction-real estate		12		-		-		12
Commercial and industrial		1,241		-		-		1,241
Mortgage
1-4 family		378		-		-		378
Other real estate (4)
Mortgage
1-4 family		162		-		-		162
Resort lending		5		-		-		5

(1)	Included in accrued income and other assets

(2)	Included in accrued expenses and other liabilities

(3)	Only includes impaired loans with specific loss allocations based on collateral value.

(4)	Only includes other real estate with subsequent write downs to fair value.

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
December 31, 2016:
Measured at Fair Value on a Recurring Basis:
Assets
Trading securities	$	410	$	410	$	-	$	-
Securities available for sale
U.S. agency		28,988		-		28,988		-
U.S. agency residential mortgage-backed		156,289		-		156,289		-
U.S. agency commercial mortgage-backed		12,632		-		12,632		-
Private label mortgage-backed		34,727		-		34,727		-
Other asset backed		146,709		-		146,709		-
Obligations of states and political subdivisions		170,899		-		170,899		-
Corporate		56,180		-		56,180		-
Trust preferred		2,579		-		2,579		-
Foreign government		1,613		-		1,613		-
Loans held for sale		35,946		-		35,946		-
Derivatives (1)		2,251		-		2,251		-
Liabilities
Derivatives (2)		975		-		975		-

Measured at Fair Value on a Non-recurring basis:
Assets
Capitalized mortgage loan servicing rights (3)		8,163		-		-		8,163
Impaired loans (4)
Commercial
Income producing - real estate		255		-		-		255
Land, land development & construction-real estate		54		-		-		54
Commercial and industrial		1,342		-		-		1,342
Mortgage
1-4 family		361		-		-		361
Other real estate (5)
Commercial
Income producing - real estate (6)		2,863		-		2,863		-
Land, land development & construction-real estate		176		-		-		176
Mortgage
1-4 family		98		-		-		98
Resort lending		133		-		-		133

(1)	Included in accrued income and other assets

(2)	Included in accrued expenses and other liabilities

(3)	Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance.

(4)	Only includes impaired loans with specific loss allocations based on collateral value.

(5)	Only includes other real estate with subsequent write downs to fair value.

(6)	Level 2 valuation is based on a signed purchase agreement.

Changes in fair value for financial assets

Changes in fair values for financial assets which we have elected the fair value option for the periods presented were as follows:

		Changes in Fair Values for the Six-Month Periods Ended June 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
		2017											2016
										Total Change in Fair Values Included							Total Change in Fair Values Included
		Net Gains (Losses) on Assets					Mortgage Loan			in Current Period			Net Gains (Losses) on Assets				in Current Period
		Securities			Loans		Servicing, net			Earnings			Securities		Loans		Earnings
	(In thousands)
Trading securities		$	(124	)	$	-	$	-		$	(124	)	$	64	$	-	$	64
Loans held for sale			-			666		-			666			-		478		478
Capitalized mortgage loan servicing rights			-			-		(1,495	)		(1,495	)		-		-		-

Reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follows:

	Capitalized Mortgage Loan Servicing Rights
	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016

Beginning balance	$	14,727		$	-	$	-		$	-
Change in accounting		-			-		14,213			-
Beginning balance, as adjusted		14,727			-		14,213			-
Total losses realized and unrealized:
Included in results of operations		(1,231	)		-		(1,495	)		-
Included in other comprehensive income		-			-		-			-
Purchases, issuances, settlements, maturities and calls		1,019			-		1,797			-
Transfers in and/or out of Level 3		-			-		-			-
Ending balance	$	14,515		$	-	$	14,515		$	-

Amount of total losses for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at June 30	$	(1,231	)	$	-	$	(1,495	)	$	-

Quantitative information about Level 3 fair value measurements measured on a non-recurring basis

Quantitative information about our Level 3 fair value measurements measured on a recurring basis follows:

	Asset Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average
	(In thousands)
June 30, 2017
Capitalized mortgage loan servicing rights	$	14,515	Present value of net	Discount rate		10.09	%
			servicing revenue	Cost to service	$	81
				Ancillary income		24
				Float rate		1.96	%

Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows:

	Asset Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average
	(In thousands)
June 30, 2017
Impaired loans
Commercial	$	1,540	Sales comparison approach	Adjustment for differences between comparable sales	(2.3		)%
Mortgage		378	Sales comparison approach	Adjustment for differences between comparable sales		(2.9	)

Other real estate
Mortgage		167	Sales comparison approach	Adjustment for differences between comparable sales		(14.1	)

December 31, 2016
Capitalized mortgage loan servicing rights	$	8,163	Present value of net servicing revenue	Discount rate		10.07	%
				Cost to service	$	83
				Ancillary income		24
				Float rate		1.97	%
Impaired loans
Commercial (1)		1,446	Sales comparison approach	Adjustment for differences between comparable sales		(1.5	)%
Mortgage		361	Sales comparison approach	Adjustment for differences between comparable sales		(4.7	)

Other real estate
Commercial		176	Sales comparison approach	Adjustment for differences between comparable sales		(22.5	)
Mortgage		231	Sales comparison approach	Adjustment for differences between comparable sales		(5.1	)

(1)

Aggregate fair value and aggregate remaining contractual principal balance for loans held for sale

	Aggregate Fair Value		Difference		Contractual Principal
	(In thousands)
Loans held for sale
June 30, 2017	$	45,693	$	1,103	$	44,590
December 31, 2016		35,946		437		35,509

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Estimated recorded book balances and fair values

The estimated recorded book balances and fair values follow:

					Fair Value Using
	Recorded Book				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Un- observable Inputs
	Balance		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
June 30, 2017
Assets
Cash and due from banks	$	35,513	$	35,513	$	35,513	$	-	$	-
Interest bearing deposits		24,255		24,255		24,255		-		-
Interest bearing deposits - time		5,339		5,346		-		5,346		-
Trading securities		286		286		286		-		-
Securities available for sale		583,725		583,725		-		583,725		-
Federal Home Loan Bank and Federal
Reserve Bank Stock		15,543		NA		NA		NA		NA
Net loans and loans held for sale		1,836,784		1,798,133		-		45,693		1,752,440
Accrued interest receivable		7,713		7,713		1		2,460		5,252
Derivative financial instruments		2,222		2,222		-		2,222		-

Liabilities
Deposits with no stated maturity (1)	$	1,769,406	$	1,769,406	$	1,769,406	$	-	$	-
Deposits with stated maturity (1)		476,813		474,172		-		474,172		-
Other borrowings		85,524		86,206		-		86,206		-
Subordinated debentures		35,569		28,379		-		28,379		-
Accrued interest payable		1,118		1,118		18		1,100		-
Derivative financial instruments		1,116		1,116		-		1,116		-

December 31, 2016
Assets
Cash and due from banks	$	35,238	$	35,238	$	35,238	$	-	$	-
Interest bearing deposits		47,956		47,956		47,956		-		-
Interest bearing deposits - time		5,591		5,611		-		5,611		-
Trading securities		410		410		410		-		-
Securities available for sale		610,616		610,616		-		610,616		-
Federal Home Loan Bank and Federal
Reserve Bank Stock		15,543		NA		NA		NA		NA
Net loans and loans held for sale (2)		1,655,335		1,629,587		-		67,321		1,562,266
Accrued interest receivable		7,316		7,316		5		2,364		4,947
Derivative financial instruments		2,251		2,251		-		2,251		-

Liabilities
Deposits with no stated maturity (1)	$	1,740,601	$	1,740,601	$	1,740,601	$	-	$	-
Deposits with stated maturity (1)		485,118		483,469		-		483,469		-
Other borrowings		9,433		10,371		-		10,371		-
Subordinated debentures		35,569		25,017		-		25,017		-
Accrued interest payable		932		932		21		911		-
Derivative financial instruments		975		975		-		975		-

(1)

(2)	Net loans and loans held for sale include $31.4 million of payment plan receivables and commercial loans held for sale at December 31, 2016.

Accumulated Other Comprehensive Loss ("AOCL") (Tables)

6 Months Ended

Jun. 30, 2017

Accumulated Other Comprehensive Loss ("AOCL") [Abstract]

Schedule of accumulated other comprehensive loss (AOCL), net of tax

A summary of changes in AOCL follows:

	Unrealized Gains (Losses) on Securities Available for Sale			Dispropor- tionate Tax Effects from Securities Available for Sale			Total
	(In thousands)
For the three months ended June 30,
2017
Balances at beginning of period	$	(738	)	$	(5,798	)	$	(6,536	)
Other comprehensive income before reclassifications		2,731			-			2,731
Amounts reclassified from AOCL		(7	)		-			(7	)
Net current period other comprehensive income		2,724			-			2,724
Balances at end of period	$	1,986		$	(5,798	)	$	(3,812	)

2016
Balances at beginning of period	$	999		$	(5,798	)	$	(4,799	)
Other comprehensive income before reclassifications		1,588			-			1,588
Amounts reclassified from AOCL		(72	)		-			(72	)
Net current period other comprehensive income		1,516			-			1,516
Balances at end of period	$	2,515		$	(5,798	)	$	(3,283	)

For the six months ended June 30,
2017
Balances at beginning of period	$	(3,310	)	$	(5,798	)	$	(9,108	)
Cumulative effect of change in accounting		300			-			300
Balances at beginning of period, as adjusted		(3,010	)		(5,798	)		(8,808	)
Other comprehensive income before reclassifications		5,072			-			5,072
Amounts reclassified from AOCL		(76	)		-			(76	)
Net current period other comprehensive income		4,996			-			4,996
Balances at end of period	$	1,986		$	(5,798	)	$	(3,812	)

2016
Balances at beginning of period	$	(238	)	$	(5,798	)	$	(6,036	)
Other comprehensive income before reclassifications		2,937			-			2,937
Amounts reclassified from AOCL		(184	)		-			(184	)
Net current period other comprehensive income		2,753			-			2,753
Balances at end of period	$	2,515		$	(5,798	)	$	(3,283	)

Summary of reclassifications out of each component of AOCL

A summary of reclassifications out of each component of AOCL for the three months ended June 30 follows:

	Amount Reclassified From		Affected Line Item in Condensed
AOCL Component	AOCL		Consolidated Statements of Operations
	(In thousands)
2017
Unrealized gains on securities available for sale
	$	11	Net gains on securities
		-	Net impairment loss recognized in earnings
		11	Total reclassifications before tax
		4	Income tax expense
	$	7	Reclassifications, net of tax

2016
Unrealized gains on securities available for sale
	$	109	Net gains on securities
		-	Net impairment loss recognized in earnings
		109	Total reclassifications before tax
		37	Income tax expense
	$	72	Reclassifications, net of tax

A summary of reclassifications out of each component of AOCL for the six months ended June 30 follows:

	Amount Reclassified From		Affected Line Item in Condensed
AOCL Component	AOCL		Consolidated Statements of Operations
	(In thousands)
2017
Unrealized gains on securities available for sale
	$	117	Net gains on securities
		-	Net impairment loss recognized in earnings
		117	Total reclassifications before tax
		41	Income tax expense
	$	76	Reclassifications, net of tax

2016
Unrealized gains on securities available for sale
	$	283	Net gains on securities
		-	Net impairment loss recognized in earnings
		283	Total reclassifications before tax
		99	Income tax expense
	$	184	Reclassifications, net of tax

Payment Plan Receivables and Other Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2017

Payment Plan Receivables and Other Assets Held for Sale [Abstract]

Assets sold and liabilities assumed

Assets sold and liabilities assumed were as follows:

	May 1, 2017		December 31, 2016
	(In thousands)
Assets sold
Payment plan receivables	$	33,128	$	30,582
Commerical loans		525		794
Other assets		1,765		1,984
Total assets	$	35,418	$	33,360

Liabilities assumed	$	1,972	$	718

New Accounting Standards (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2017

Jun. 30, 2017

Dec. 31, 2016

Jun. 30, 2016

Dec. 31, 2015

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

$ 25,201

$ 32,818

14,515

2,665,367

2,548,950

(57,966)

(65,657)

(3,812)

(9,108)

262,453

248,980

$ 246,923

$ 251,092

Originally Presented [Member]

$ 2,665,367

2,548,950

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

32,818

13,671

2,548,950

(65,657)

(9,108)

248,980

Cumulative Retrospective Adjustments [Member]

2,548,950

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

352

Change in Accounting Method and ASU 2017-08 [Member]

352

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

249,332

Change in Accounting Method [Member]

2,549,302

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

32,628

14,213

Change in Accounting Method [Member] | Cumulative Retrospective Adjustments [Member]

2,549,302

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

^[1]

(190)

^[1]

542

352

New Accounting Pronouncement, Effect of Early Adoption [Member] | Additional Premium Amortization on AFS Securities, Pre-tax [Member]

^[1]

352

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

Cumulative effect of adjustments

460

New Accounting Pronouncement, Effect of Early Adoption [Member] | Additional Premium Amortization on AFS Securities, Net of Tax [Member]

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

Cumulative effect of adjustments

300

New Accounting Pronouncement, Effect of Early Adoption [Member] | AOCI Decrease, Unrealized Losses AFS Securities, After Tax [Member]

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

Cumulative effect of adjustments

300

ASU 2017-08 [Member]

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

(65,605)

Increase in premium amortization on securities available for sale

(8,808)

$ 30

ASU 2017-08 [Member] | Cumulative Retrospective Adjustments [Member]

Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]

^[2]

(300)

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

^[2]

$ 300

[1]	Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights.
[2]	Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08.

Securities (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Securities (Details) $ in Thousands	Jun. 30, 2017 USD ($) Security	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) Security	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 580,670		$ 580,670		$ 615,709
Unrealized Gains	5,060		5,060		2,548
Unrealized Losses	2,005		2,005		7,641
Fair Value	583,725		583,725		610,616
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	135,340		135,340		286,522
Less Than Twelve Months, Unrealized Losses	1,149		1,149		5,739
Twelve Months or More, Fair Value	50,180		50,180		68,405
Twelve Months or More, Unrealized Losses	856		856		1,902
Total, Fair Value	185,520		185,520		354,927
Total, Unrealized Losses	2,005		2,005		7,641
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value	2,159		2,159
Amortized cost	1,891		1,891
Non-credit unrealized loss	0		0
Unrealized gain	268		268
Cumulative credit related OTTI	1,594		1,594
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at beginning of period	1,844	$ 1,844	1,844	$ 1,844	1,844
Additions to credit losses on securities for which no previous OTTI was recognized	0	0	0	0
Increases to credit losses on securities for which OTTI was previously recognized	0	0	0	0
Balance at end of period	1,844	1,844	1,844	1,844	1,844
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
Maturing within one year	30,555		30,555
Maturing after one year but within five years	99,193		99,193
Maturing after five years but within ten years	86,846		86,846
Maturing after ten years	56,975		56,975
Available-for-sale securities, debt maturities, amortized cost basis	273,569		273,569
U.S. agency residential mortgage-backed	143,670		143,670
U.S. agency commercial mortgage-backed	11,573		11,573
Private label mortgage-backed	25,150		25,150
Other asset backed	126,708		126,708
Total	580,670		580,670
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Maturing within one year	30,608		30,608
Maturing after one year but within five years	99,956		99,956
Maturing after five years but within ten years	88,012		88,012
Maturing after ten years	56,858		56,858
Total available-for-sale securities fair value	275,434		275,434
U.S. agency residential mortgage-backed	144,484		144,484
U.S. agency commercial mortgage-backed	11,577		11,577
Private label mortgage-backed	25,332		25,332
Other asset backed	126,898		126,898
Total	583,725		583,725
Gain and losses realized on sale of securities available for sale [Abstract]
Proceeds			7,830	55,362
Realized gains			117	336
Realized losses			0	53
Credit related OTTI recognized in earnings	0	$ 0	0	0
Trading securities, realized gains (losses)			(124)	$ 64
Cumulative Retrospective Adjustments [Member] \| ASU 2017-08 [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Adjustment in amortized cost of available for sale securities					(460)
U.S. Agency [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	28,179		28,179		28,909
Unrealized Gains	248		248		159
Unrealized Losses	29		29		80
Fair Value	28,398		28,398		28,988
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	2,841		2,841		4,179
Less Than Twelve Months, Unrealized Losses	17		17		41
Twelve Months or More, Fair Value	4,920		4,920		8,217
Twelve Months or More, Unrealized Losses	12		12		39
Total, Fair Value	7,761		7,761		12,396
Total, Unrealized Losses	$ 29		$ 29		80
Number of securities with market fair value less than amortized cost \| Security	21		21
U.S. Agency Residential Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 143,670		$ 143,670		156,053
Unrealized Gains	1,309		1,309		1,173
Unrealized Losses	495		495		937
Fair Value	144,484		144,484		156,289
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	32,667		32,667		62,524
Less Than Twelve Months, Unrealized Losses	260		260		732
Twelve Months or More, Fair Value	21,433		21,433		20,857
Twelve Months or More, Unrealized Losses	235		235		205
Total, Fair Value	54,100		54,100		83,381
Total, Unrealized Losses	$ 495		$ 495		937
Number of securities with market fair value less than amortized cost \| Security	103		103
U.S. Agency Commercial Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 11,573		$ 11,573		12,799
Unrealized Gains	107		107		28
Unrealized Losses	103		103		195
Fair Value	11,577		11,577		12,632
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	6,147		6,147		6,079
Less Than Twelve Months, Unrealized Losses	102		102		194
Twelve Months or More, Fair Value	122		122		143
Twelve Months or More, Unrealized Losses	1		1		1
Total, Fair Value	6,269		6,269		6,222
Total, Unrealized Losses	$ 103		$ 103		195
Number of securities with market fair value less than amortized cost \| Security	11		11
Private Label Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 25,150		$ 25,150		35,035
Unrealized Gains	426		426		216
Unrealized Losses	244		244		524
Fair Value	25,332		25,332		34,727
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	5,002		5,002		20,545
Less Than Twelve Months, Unrealized Losses	66		66		281
Twelve Months or More, Fair Value	1,143		1,143		1,413
Twelve Months or More, Unrealized Losses	178		178		243
Total, Fair Value	6,145		6,145		21,958
Total, Unrealized Losses	$ 244		$ 244		524
Number of securities with market fair value less than amortized cost \| Security	14		14
Number of securities purchased prior to 2016 \| Security	3		3
Number of securities with impairment in excess of ten percent \| Security	1		1
Percentage of excess impairment on securities	10.00%		10.00%
Number of securities with impairment for more than 12 months \| Security	3		3
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Number of private label mortgage backed securities currently with OTTI unrealized gains \| Security	3		3
Number of private label mortgage backed securities complete recovery of cost basis \| Security	3		3
Senior Security [Member]
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value	$ 1,133		$ 1,133
Amortized cost	1,003		1,003
Non-credit unrealized loss	0		0
Unrealized gain	130		130
Cumulative credit related OTTI	757		757
Super Senior Security [Member]
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value	955		955
Amortized cost	888		888
Non-credit unrealized loss	0		0
Unrealized gain	67		67
Cumulative credit related OTTI	457		457
Senior Support Security [Member]
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value	71		71
Amortized cost	0		0
Non-credit unrealized loss	0		0
Unrealized gain	71		71
Cumulative credit related OTTI	380		380
Other Asset Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	126,708		126,708		146,829
Unrealized Gains	327		327		271
Unrealized Losses	137		137		391
Fair Value	126,898		126,898		146,709
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	25,998		25,998		52,958
Less Than Twelve Months, Unrealized Losses	38		38		172
Twelve Months or More, Fair Value	11,035		11,035		17,763
Twelve Months or More, Unrealized Losses	99		99		219
Total, Fair Value	37,033		37,033		70,721
Total, Unrealized Losses	$ 137		$ 137		391
Number of securities with market fair value less than amortized cost \| Security	69		69
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 178,729		$ 178,729		175,180
Unrealized Gains	1,787		1,787		478
Unrealized Losses	752		752		4,759
Fair Value	179,764		179,764		170,899
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	50,302		50,302		113,078
Less Than Twelve Months, Unrealized Losses	611		611		4,014
Twelve Months or More, Fair Value	6,788		6,788		14,623
Twelve Months or More, Unrealized Losses	141		141		745
Total, Fair Value	57,090		57,090		127,701
Total, Unrealized Losses	$ 752		$ 752		4,759
Number of securities with market fair value less than amortized cost \| Security	183		183
Corporate [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 61,629		$ 61,629		56,356
Unrealized Gains	856		856		223
Unrealized Losses	76		76		399
Fair Value	62,409		62,409		56,180
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	10,281		10,281		25,546
Less Than Twelve Months, Unrealized Losses	51		51		292
Twelve Months or More, Fair Value	1,978		1,978		2,810
Twelve Months or More, Unrealized Losses	25		25		107
Total, Fair Value	12,259		12,259		28,356
Total, Unrealized Losses	$ 76		$ 76		399
Number of securities with market fair value less than amortized cost \| Security	13		13
Trust Preferred [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 2,926		$ 2,926		2,922
Unrealized Gains	0		0		0
Unrealized Losses	165		165		343
Fair Value	2,761		2,761		2,579
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	0		0		0
Less Than Twelve Months, Unrealized Losses	0		0		0
Twelve Months or More, Fair Value	2,761		2,761		2,579
Twelve Months or More, Unrealized Losses	165		165		343
Total, Fair Value	2,761		2,761		2,579
Total, Unrealized Losses	$ 165		$ 165		343
Number of securities with market fair value less than amortized cost \| Security	3		3
Number of issues rated as investment grade \| Security	1		1
Number of securities rated as below investment grade \| Security	1		1
Number of major credit rating agencies rating securities with fair value less than amortized cost \| Security	2		2
Number of securities non-rated \| Security	1		1
Non-rated trust preferred securities, amortized cost	$ 1,000		$ 1,000
Non-rated trust preferred securities, fair value	900		900
Rated Issues [Member]
Trust preferred securities [Abstract]
Fair Value	1,844		1,844		1,800
Net Unrealized Loss			(82)		(123)
Unrated Issues [Member]
Trust preferred securities [Abstract]
Fair Value	917		917		779
Net Unrealized Loss			(83)		(220)
Foreign Government [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized Cost	2,106		2,106		1,626
Unrealized Gains	0		0		0
Unrealized Losses	4		4		13
Fair Value	2,102		2,102		1,613
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	2,102		2,102		1,613
Less Than Twelve Months, Unrealized Losses	4		4		13
Twelve Months or More, Fair Value	0		0		0
Twelve Months or More, Unrealized Losses	0		0		0
Total, Fair Value	2,102		2,102		1,613
Total, Unrealized Losses	$ 4		$ 4		$ 13
Number of securities with market fair value less than amortized cost \| Security	2		2

Loans (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

Dec. 31, 2016

$ 20,038

$ 22,495

$ 20,234

$ 22,570

583

(734)

224

(1,264)

657

1,759

1,786

2,718

(692)

(808)

(1,658)

(1,312)

20,586

22,712

20,586

22,712

7,244

$ 9,152

13,342

11,082

20,586

20,234

71,894

79,831

1,745,219

1,533,530

1,817,113

1,613,361

5,436

5,113

1,811,677

1,608,248

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

5,088

5,622

4,880

5,670

(39)

(663)

(100)

(1,067)

202

1,114

606

1,470

(151)

(34)

(286)

(34)

5,100

6,039

5,100

6,039

1,094

2,244

4,006

2,636

5,100

4,880

11,351

15,767

819,442

790,228

830,793

805,995

2,015

1,978

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

828,778

804,017

Mortgage [Member]

8,109

10,296

8,681

10,391

(359)

(661)

(638)

191

294

677

676

(193)

(275)

(552)

(473)

8,145

9,956

8,145

9,956

5,873

6,579

2,272

2,102

8,145

8,681

56,106

59,151

621,015

481,828

677,121

540,979

^[1]

2,622

2,364

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

674,499

538,615

Installment [Member]

911

1,161

1,011

1,181

126

206

191

264

351

503

572

(348)

(499)

(820)

(805)

900

1,139

900

1,139

277

329

623

682

900

1,011

4,437

4,913

304,762

261,474

309,199

266,387

^[1]

799

771

Payment Plan Receivables [Member]

308,400

265,616

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

^[2]

^[2]

(1)

^[2]

(4)

^[2]

^[2]

Subjective Allocation [Member]

^[2]

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

5,930

5,363

5,662

5,272

511

163

779

254

6,441

$ 5,526

6,441

$ 5,526

6,441

5,662

$ 6,441

$ 5,662

[1]	Credit scores have been updated within the last twelve months.
[2]	Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15.

Loans, Receivables Past Due (Details) - USD ($)
$ in Thousands

Jun. 30, 2017

Dec. 31, 2016

$ 0

8,542

13,364

8,542

13,364

13,405

15,597

1,803,708

1,597,764

1,817,113

1,613,361

Loans Past Due, 30-59 days [Member]

5,436

5,113

3,669

4,257

Loans Past Due, 60-89 days [Member]

1,797

2,659

Loans Past Due, 90+ days [Member]

7,939

8,681

Loans Past Due Total [Member]

Loans Not Past Due [Member]

5,358

5,049

830,793

805,995

Commercial [Member] | Income Producing - Real Estate [Member]

2,015

1,978

203

628

203

628

383

280,018

287,255

Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 30-59 days [Member]

280,084

287,638

Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 60-89 days [Member]

Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 90+ days [Member]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member]

383

105

105

105

58,353

51,670

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 30-59 days [Member]

58,353

51,775

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 60-89 days [Member]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 90+ days [Member]

Commercial [Member] | Commercial and Industrial [Member]

541

4,430

541

4,430

375

1,551

491,981

465,031

Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 30-59 days [Member]

492,356

466,582

Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 60-89 days [Member]

254

100

Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 90+ days [Member]

1,385

121

Mortgage [Member]

677,121

540,979

^[1]

2,622

2,364

5,481

5,248

5,481

5,248

8,382

8,478

448,747

306,063

457,129

314,541

Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 30-59 days [Member]

^[1]

1,761

1,466

Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 60-89 days [Member]

1,894

2,361

Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 90+ days [Member]

1,007

869

5,481

5,248

1,043

1,507

1,043

1,507

1,443

1,507

94,764

101,541

96,207

103,048

Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 30-59 days [Member]

^[1]

379

450

Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 60-89 days [Member]

136

Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 90+ days [Member]

264

Mortgage [Member] | Home Equity - 1st Lien [Member]

1,043

1,507

198

222

198

222

334

371

33,697

28,645

34,031

29,016

Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member]

^[1]

137

111

Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member]

149

Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member]

Mortgage [Member] | Home Equity - 2nd Lien [Member]

198

222

312

317

312

317

1,133

1,005

52,598

54,232

53,731

55,237

Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member]

^[1]

244

226

Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member]

644

470

Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member]

177

218

Mortgage [Member] | Purchased Loans [Member]

312

317

36,014

39,122

36,023

39,137

Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 30-59 days [Member]

^[1]

101

111

Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 60-89 days [Member]

Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 90+ days [Member]

Installment [Member]

309,199

266,387

Installment [Member] | Home Equity - 1st Lien [Member]

^[1]

799

771

203

266

203

266

387

625

10,589

12,025

10,976

12,650

Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member]

^[1]

Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member]

124

311

Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member]

Installment [Member] | Home Equity - 2nd Lien [Member]

203

266

308

289

308

289

611

568

10,791

13,390

11,402

13,958

Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member]

^[1]

Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member]

163

238

Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member]

140

308

289

219

219

278

436

126,150

102,489

126,428

102,925

Installment [Member] | Boat Lending [Member] | Loans Past Due, 30-59 days [Member]

^[1]

291

264

Installment [Member] | Boat Lending [Member] | Loans Past Due, 60-89 days [Member]

173

184

Installment [Member] | Boat Lending [Member] | Loans Past Due, 90+ days [Member]

Installment [Member] | Recreational Vehicle Lending [Member]

219

122

89,132

74,413

89,215

74,535

Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 30-59 days [Member]

^[1]

215

203

Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 60-89 days [Member]

Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 90+ days [Member]

130

112

130

112

304

431

70,874

61,888

71,178

62,319

Installment [Member] | Other [Member] | Loans Past Due, 30-59 days [Member]

^[1]

200

191

Installment [Member] | Other [Member] | Loans Past Due, 60-89 days [Member]

130

289

Installment [Member] | Other [Member] | Loans Past Due, 90+ days [Member]

Impaired loan with no allocated allowance [Abstract]

$ 130

$ 112

[1]	Credit scores have been updated within the last twelve months.

Loans, Impaired Financing Receivables (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

^[2]

Jun. 30, 2017

Jun. 30, 2016

^[3]

Dec. 31, 2016

TDR

$ 602

$ 1,782

Non - TDR

1,107

Impaired loans with an allocated allowance [Abstract]

TDR allowances based on collateral

2,375

3,527

TDR - allowances based on present value cash flow

68,350

72,613

Non - TDR - allowance based on collateral

262

491

Total impaired loans

71,589

79,520

Amount of allowance for loan losses allocated [Abstract]

TDR - allowance based on collateral

683

1,868

TDR - allowance based on present value cash flow

6,525

7,146

Non - TDR - allowance based on collateral

138

Allowance for loan losses allocated

7,244

9,152

Unpaid Principal Balance, with no related allowance

^[1]

606

2,891

^[1]

1,339

5,191

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

71,288

76,940

^[1]

73,416

79,520

^[1]

71,894

79,831

^[1]

74,755

84,711

^[1]

7,244

9,152

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

305

311

Average Recorded Investment, with No Related Allowance

489

^[2]

$ 1,636

1,289

^[3]

$ 1,999

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

72,193

^[2]

85,773

73,774

^[3]

85,983

866

^[2]

905

1,714

^[3]

1,808

72,682

^[2]

87,409

75,063

^[3]

87,982

Commercial [Member] | Income Producing - Real Estate [Member]

881

^[2]

910

1,734

^[3]

1,845

Unpaid Principal Balance, with no related allowance

^[1]

517

^[1]

768

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

7,647

7,737

^[1]

7,835

7,880

^[1]

7,647

8,254

^[1]

7,835

8,648

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

594

554

Average Recorded Investment, with No Related Allowance

185

^[2]

673

296

^[3]

662

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

7,694

^[2]

8,210

7,708

^[3]

8,266

104

^[2]

100

209

^[3]

207

7,879

^[2]

8,883

8,004

^[3]

8,928

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member]

104

^[2]

100

209

^[3]

209

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

709

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

172

239

^[1]

199

244

^[1]

172

270

^[1]

199

953

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with No Related Allowance

^[2]

335

^[3]

496

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

170

^[2]

1,664

193

^[3]

1,673

^[2]

^[3]

170

^[2]

1,999

203

^[3]

2,169

Commercial [Member] | Commercial and Industrial [Member]

^[2]

^[3]

Unpaid Principal Balance, with no related allowance

^[1]

354

2,341

^[1]

352

3,261

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

3,178

4,902

^[1]

3,256

5,246

^[1]

3,532

7,243

^[1]

3,608

8,507

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

489

1,654

Average Recorded Investment, with No Related Allowance

177

^[2]

609

898

^[3]

821

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

3,237

^[2]

6,203

3,792

^[3]

5,501

^[2]

^[3]

3,414

^[2]

6,812

4,690

^[3]

6,322

^[2]

^[3]

103

Unpaid Principal Balance, with no related allowance

^[1]

251

^[1]

915

387

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

39,194

41,701

^[1]

40,728

43,479

^[1]

39,445

41,703

^[1]

41,643

43,866

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

3,590

4,100

Average Recorded Investment, with No Related Allowance

126

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

39,646

^[2]

46,041

40,331

^[3]

46,625

494

^[2]

475

958

^[3]

977

39,772

^[2]

46,052

40,416

^[3]

46,640

499

^[2]

480

967

^[3]

983

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

16,251

16,898

^[1]

16,318

16,931

^[1]

16,251

16,898

^[1]

16,318

16,931

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

2,249

2,453

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

16,471

^[2]

17,689

16,613

^[3]

17,842

150

^[2]

159

311

^[3]

319

16,471

^[2]

17,689

16,613

^[3]

17,842

Mortgage [Member] | Home Equity - 1st Lien [Member]

150

^[2]

159

311

^[3]

319

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

230

235

^[1]

239

242

^[1]

230

235

^[1]

239

242

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

232

^[2]

243

233

^[3]

218

^[2]

^[3]

232

^[2]

243

233

^[3]

218

Mortgage [Member] | Home Equity - 2nd Lien [Member]

^[2]

^[3]

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

180

315

^[1]

214

398

^[1]

180

315

^[1]

214

398

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

186

^[2]

181

229

^[3]

202

^[2]

^[3]

186

^[2]

181

229

^[3]

202

Installment [Member] | Home Equity - 1st Lien [Member]

^[2]

^[3]

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

1,825

1,994

^[1]

1,952

2,117

^[1]

1,826

1,994

^[1]

2,024

2,183

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

118

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

1,855

^[2]

2,230

1,901

^[3]

2,274

^[2]

^[3]

1,856

^[2]

2,231

1,901

^[3]

2,274

Installment [Member] | Home Equity - 2nd Lien [Member]

^[2]

^[3]

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

2,147

2,415

^[1]

2,173

2,443

^[1]

2,147

2,415

^[1]

2,173

2,443

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

165

182

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

2,228

^[2]

2,751

2,290

^[3]

2,810

^[2]

^[3]

2,228

^[2]

2,758

2,290

^[3]

2,815

^[2]

^[3]

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

^[1]

^[1]

^[1]

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

^[2]

^[3]

^[2]

^[3]

^[2]

^[3]

Installment [Member] | Recreational Vehicle Lending [Member]

^[2]

^[3]

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

102

109

^[1]

102

108

^[1]

102

109

^[1]

102

108

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

104

^[2]

117

106

^[3]

119

^[2]

^[3]

104

^[2]

117

106

^[3]

119

^[2]

^[3]

Unpaid Principal Balance, with no related allowance

^[1]

^[1]

^[1]

Unpaid Principal Balance, with an allowance recorded

^[1]

361

394

^[1]

394

426

^[1]

361

394

^[1]

394

426

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

$ 23

Average Recorded Investment, with No Related Allowance

^[2]

^[3]

Interest Income Recognized, with No Related Allowance

^[2]

^[3]

Average Recorded Investment, with Related Allowance

369

^[2]

442

377

^[3]

451

^[2]

^[3]

369

^[2]

442

377

^[3]

451

Financing Receivable, Modifications [Line Items]

$ 6

^[2]

$ 9

$ 13

^[3]

$ 16

[1]	There were no impaired purchased mortgage loans at June 30, 2017 or December 31, 2016.
[2]	There were no impaired purchased mortgage loans during the three month periods ended June 30, 2017 and 2016, respectively.
[3]	There were no impaired purchased mortgage loans during the six month periods ended June 30, 2017 and 2016, respectively.

Loans, Troubled Debt Restructurings (Details)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

USD ($)

Contract

Jun. 30, 2016

USD ($)

Contract

Jun. 30, 2017

USD ($)

Payments

Contract

Jun. 30, 2016

USD ($)

Contract

Dec. 31, 2016

USD ($)

Troubled debt restructuring, specific reserve

$ 71,327

$ 77,922

$ 7,200

9,000

Number of Consecutive Timely Payments Required | Payments

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 889

^[1]

$ 221

^[1]

$ 1,307

^[2]

$ 2,480

^[2]

Increase (decrease) in allowance for loan losses

890

^[1]

224

^[1]

1,312

^[2]

2,527

^[2]

100

300

Charge offs due to troubled debt restructurings

$ 0

TDR that subsequently defaulted [Abstract]

Past due period for modified loans

90 days

Charge-offs on TDRs that subsequently defaulted

$ 0

Minimum [Member]

Financing Receivable, Modifications [Line Items]

Modification of stated interest rate of loans, range of period

9 months

Modifications involving extension of maturity date, period range

1 month

Maximum [Member]

Financing Receivable, Modifications [Line Items]

Modification of stated interest rate of loans, range of period

36 months

Modification of stated interest rate of loans, range of period in certain circumstances

480 months

Modifications involving extension of maturity date, period range

60 months

Modifications involving extension of maturity date, period range in certain circumstances

230 months

Performing TDRs [Member]

Financing Receivable, Modifications [Line Items]

Non-performing TDRs [Member]

66,651

$ 66,651

70,286

Financing Receivable, Modifications [Line Items]

^[3]

4,676

7,636

Financing Receivable, Modifications [Line Items]

Commercial [Member] | Performing TDRs [Member]

11,043

14,125

Financing Receivable, Modifications [Line Items]

Commercial [Member] | Non-performing TDRs [Member]

10,551

10,560

Financing Receivable, Modifications [Line Items]

Commercial [Member] | Income Producing - Real Estate [Member]

^[3]

$ 492

3,565

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 110

^[2]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 110

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

Commercial [Member] | Commercial and Industrial [Member]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 653

^[1]

$ 0

^[1]

$ 786

^[2]

$ 1,758

^[2]

$ 653

^[1]

$ 0

^[1]

$ 786

^[2]

$ 1,758

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 32

^[1]

$ 109

^[1]

$ 49

^[2]

$ 192

^[2]

$ 32

^[1]

$ 110

^[1]

$ 49

^[2]

$ 263

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 0

^[1]

$ 189

^[2]

$ 116

^[2]

Mortgage [Member] | Home Equity - 1st Lien [Member]

$ 0

^[1]

$ 0

^[1]

$ 189

^[2]

$ 117

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 107

^[2]

Mortgage [Member] | Home Equity - 2nd Lien [Member]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 78

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

Installment [Member] | Home Equity - 1st Lien [Member]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 29

^[1]

$ 34

^[2]

$ 59

^[2]

Installment [Member] | Home Equity - 2nd Lien [Member]

$ 0

^[1]

$ 29

^[1]

$ 37

^[2]

$ 60

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 204

^[1]

$ 71

^[1]

$ 249

^[2]

$ 126

^[2]

$ 205

^[1]

$ 73

^[1]

$ 251

^[2]

$ 129

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

Installment [Member] | Recreational Vehicle Lending [Member]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

$ 0

^[1]

$ 0

^[1]

$ 0

^[2]

$ 0

^[2]

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[2]

$ 0

^[1]

$ 12

^[1]

$ 0

^[2]

$ 12

^[2]

Financing Receivable, Modifications [Line Items]

^[1]

$ 12

^[1]

^[2]

$ 12

^[2]

Retail [Member]

Retail [Member] | Performing TDRs [Member]

^[4]

60,284

63,797

Financing Receivable, Modifications [Line Items]

Retail [Member] | Non-performing TDRs [Member]

^[4]

56,100

59,726

Financing Receivable, Modifications [Line Items]

Loan ratings/credit scores by loan class [Abstract]

^[3],[4],[5]

$ 4,184

$ 4,071

[1]	There were no purchased mortgage loans classified as troubled debt restructurings during the three month periods ended June 30, 2017 and 2016, respectively.
[2]	There were no purchased mortgage loans classified as troubled debt restructurings during the six month periods ended June 30, 2017 and 2016, respectively.
[3]	Included in non-performing loans table above.
[4]	Retail loans include mortgage and installment loan segments.
[5]	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

Loans, Loan Ratings by Loan Class, Commercial Segment (Details) - USD ($)
$ in Thousands

Jun. 30, 2017

Dec. 31, 2016

$ 828,778

$ 804,017

Other Real Estate and Foreclosed Assets [Abstract]

5,436

5,113

Foreclosed residential real estate properties

2,000

1,900

Retail mortgage loans in process of foreclosure

1,200

1,000

Loan ratings/credit scores by loan class [Abstract]

830,793

805,995

Commercial [Member] | Non-Watch 1-6 [Member]

2,015

1,978

Loan ratings/credit scores by loan class [Abstract]

809,868

783,854

Commercial [Member] | Watch 7-8 [Member]

1,952

1,915

Loan ratings/credit scores by loan class [Abstract]

16,580

13,642

Commercial [Member] | Substandard Accrual 9 [Member]

Loan ratings/credit scores by loan class [Abstract]

3,592

3,335

Commercial [Member] | Non-Accrual 10-11 [Member]

Loan ratings/credit scores by loan class [Abstract]

753

5,164

Commercial [Member] | Income Producing - Real Estate [Member]

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Income Producing - Real Estate [Member] | Non-Watch 1-6 [Member]

280,084

287,638

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Income Producing - Real Estate [Member] | Watch 7-8 [Member]

276,218

282,886

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Income Producing - Real Estate [Member] | Substandard Accrual 9 [Member]

3,344

3,787

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Income Producing - Real Estate [Member] | Non-Accrual 10-11 [Member]

320

337

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member]

202

628

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non-Watch 1-6 [Member]

58,353

51,775

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Watch 7-8 [Member]

58,278

51,603

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Substandard Accrual 9 [Member]

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non-Accrual 10-11 [Member]

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Commercial and Industrial [Member]

105

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Commercial and Industrial [Member] | Non-Watch 1-6 [Member]

492,356

466,582

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Commercial and Industrial [Member] | Watch 7-8 [Member]

475,372

449,365

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Commercial and Industrial [Member] | Substandard Accrual 9 [Member]

13,171

9,788

Loan ratings/credit scores by loan class [Abstract]

Commercial [Member] | Commercial and Industrial [Member] | Non-Accrual 10-11 [Member]

3,272

2,998

Loan ratings/credit scores by loan class [Abstract]

Loan ratings/credit scores by loan class [Abstract]

541

4,431

Mortgage [Member]

^[1]

87,695

69,920

^[1]

262,540

195,484

^[1]

150,820

121,245

^[1]

93,782

77,129

^[1]

35,974

35,780

^[1]

20,421

18,931

^[1]

12,238

12,120

^[1]

4,364

5,771

^[1]

9,287

4,599

^[1]

677,121

540,979

^[1]

2,622

2,364

Loan ratings/credit scores by loan class [Abstract]

^[1]

51,751

36,534

^[1]

175,169

102,382

^[1]

98,924

69,337

^[1]

69,420

50,621

^[1]

27,633

25,270

^[1]

15,598

13,747

^[1]

8,948

9,215

^[1]

3,839

5,145

^[1]

5,847

2,290

^[1]

457,129

314,541

^[1]

1,761

1,466

Loan ratings/credit scores by loan class [Abstract]

^[1]

11,770

10,484

^[1]

34,856

41,999

^[1]

25,749

24,727

^[1]

13,070

13,798

^[1]

4,790

5,769

^[1]

2,790

3,030

^[1]

1,407

1,438

^[1]

^[1]

1,685

1,711

^[1]

96,207

103,048

Mortgage [Member] | Home Equity - 1st Lien [Member]

^[1]

379

450

Loan ratings/credit scores by loan class [Abstract]

^[1]

7,477

6,048

^[1]

14,175

10,006

^[1]

6,019

5,706

^[1]

3,501

4,106

^[1]

1,080

1,674

^[1]

478

455

^[1]

543

486

^[1]

253

255

^[1]

505

280

^[1]

34,031

29,016

Mortgage [Member] | Home Equity - 2nd Lien [Member]

^[1]

137

111

Loan ratings/credit scores by loan class [Abstract]

^[1]

8,575

8,392

^[1]

19,038

20,113

^[1]

12,087

12,360

^[1]

7,359

8,167

^[1]

2,471

3,067

^[1]

1,555

1,699

^[1]

1,340

981

^[1]

182

279

^[1]

1,124

179

^[1]

53,731

55,237

Mortgage [Member] | Purchased Loans [Member]

^[1]

244

226

Loan ratings/credit scores by loan class [Abstract]

^[1]

8,122

8,462

^[1]

19,302

20,984

^[1]

8,041

9,115

^[1]

432

437

^[1]

^[1]

^[1]

^[1]

^[1]

126

139

^[1]

36,023

39,137

Loan ratings/credit scores by loan class [Abstract]

^[1]

101

111

Installment [Member]

^[1]

64,797

56,347

^[1]

138,923

114,065

^[1]

56,182

48,883

^[1]

25,935

25,070

^[1]

8,049

8,402

^[1]

3,961

4,289

^[1]

2,169

2,813

^[1]

367

634

^[1]

8,816

5,884

^[1]

309,199

266,387

Installment [Member] | Home Equity - 1st Lien [Member]

^[1]

799

771

Loan ratings/credit scores by loan class [Abstract]

^[1]

1,182

1,354

^[1]

2,168

2,478

^[1]

1,713

1,920

^[1]

2,312

2,852

^[1]

1,506

1,691

^[1]

1,295

1,231

^[1]

677

981

^[1]

114

^[1]

^[1]

10,976

12,650

Installment [Member] | Home Equity - 2nd Lien [Member]

^[1]

Loan ratings/credit scores by loan class [Abstract]

^[1]

925

1,626

^[1]

3,030

3,334

^[1]

2,438

2,686

^[1]

1,991

2,541

^[1]

1,506

1,775

^[1]

945

1,063

^[1]

501

692

^[1]

220

^[1]

^[1]

11,402

13,958

^[1]

Loan ratings/credit scores by loan class [Abstract]

^[1]

26,334

21,422

^[1]

64,018

50,508

^[1]

24,380

20,045

^[1]

8,913

7,559

^[1]

1,754

1,846

^[1]

510

882

^[1]

289

440

^[1]

^[1]

164

150

^[1]

126,428

102,925

Installment [Member] | Recreational Vehicle Lending [Member]

^[1]

291

264

Loan ratings/credit scores by loan class [Abstract]

^[1]

25,972

23,034

^[1]

44,949

35,827

^[1]

12,980

11,049

^[1]

3,825

3,205

^[1]

863

821

^[1]

255

280

^[1]

189

^[1]

^[1]

170

114

^[1]

89,215

74,535

^[1]

215

203

Loan ratings/credit scores by loan class [Abstract]

^[1]

10,384

8,911

^[1]

24,758

21,918

^[1]

14,671

13,183

^[1]

8,894

8,913

^[1]

2,420

2,269

^[1]

956

833

^[1]

513

511

^[1]

133

211

^[1]

8,449

5,570

^[1]

71,178

62,319

Earnings Per Share Reconciliation [Abstract]

^[1]

$ 200

$ 191

[1]	Credit scores have been updated within the last twelve months.

Shareholders' Equity and Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

Jan. 23, 2017

Net income

$ 5,931

$ 6,438

$ 11,905

$ 10,538

Weighted average shares outstanding (in shares)

^[1]

21,331

21,281

21,320

21,516

Effect of stock options (in shares)

143

148

147

150

Stock units for deferred compensation plan for non-employee directors (in shares)

119

114

119

114

Performance share units (in shares)

Restricted stock units (in shares)

Weighted average shares outstanding for calculation of diluted earnings per share (in shares)

21,647

21,639

21,643

21,887

Net income per common share [Abstract]

Basic (in dollars per share)

^[1]

$ 0.28

$ 0.30

$ 0.56

$ 0.49

Diluted (in dollars per share)

$ 0.27

$ 0.30

$ 0.55

$ 0.48

Common Stock [Member]

Class of Stock [Line Items]

Stock repurchase program percentage of shares authorized to be repurchased

5.00%

Stock Options [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive shares excluded from computation of diluted loss per share (in shares)

[1]	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

Derivative Financial Instruments (Details) - No Hedge Designation [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount	$ 240,237	$ 187,092
Average Maturity	3 years 9 months 18 days	4 years 4 months 24 days
Fair Value	$ 1,106	$ 1,276
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives	2,222	2,251
Liability Derivatives	1,116	975
Rate-Lock Mortgage Loan Commitments [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount	$ 44,985	$ 26,658
Average Maturity	1 month 6 days	1 month 6 days
Fair Value	$ 1,082	$ 646
Rate-Lock Mortgage Loan Commitments [Member] \| Other Assets [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives	1,082	646
Rate-Lock Mortgage Loan Commitments [Member] \| Other Liabilities [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives	0	0
Mandatory Commitments to Sell Mortgage Loans [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount	$ 80,760	$ 61,954
Average Maturity	1 month 6 days	1 month 6 days
Fair Value	$ 24	$ 630
Mandatory Commitments to Sell Mortgage Loans [Member] \| Other Assets [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives	24	630
Mandatory Commitments to Sell Mortgage Loans [Member] \| Other Liabilities [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives	0	0
Interest Rate Swap [Member] \| Fixed Income Interest Rate [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount	$ 54,127	$ 46,121
Average Maturity	8 years	8 years 7 months 6 days
Fair Value	$ 0	$ 249
Interest Rate Swap [Member] \| Fixed Income Interest Rate [Member] \| Other Assets [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives	422	493
Interest Rate Swap [Member] \| Fixed Income Interest Rate [Member] \| Other Liabilities [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives	422	244
Interest Rate Swap [Member] \| Variable Income Interest Rate [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount	$ 54,127	$ 46,121
Average Maturity	8 years	8 years 7 months 6 days
Fair Value	$ 0	$ (249)
Interest Rate Swap [Member] \| Variable Income Interest Rate [Member] \| Other Assets [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives	422	244
Interest Rate Swap [Member] \| Variable Income Interest Rate [Member] \| Other Liabilities [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives	422	493
Purchased Options [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount	$ 3,119	$ 3,119
Average Maturity	4 years 3 months 18 days	4 years 6 months
Fair Value	$ 272	$ 238
Purchased Options [Member] \| Other Assets [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives	272	238
Purchased Options [Member] \| Other Liabilities [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives	0	0
Written Options [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount	$ 3,119	$ 3,119
Average Maturity	4 years 3 months 18 days	4 years 6 months
Fair Value	$ (272)	$ (238)
Written Options [Member] \| Other Assets [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives	0	0
Written Options [Member] \| Other Liabilities [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives	$ 272	$ 238

Derivative Financial Instruments, Effect on Statement of Operations (Details) - No Hedge Designation [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	$ 255	$ (110)	$ (170)	$ (97)
Rate-Lock Mortgage Loan Commitments [Member] \| Net Gains on Mortgage Loans [Member]
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	65	130	436	349
Mandatory Commitments to Sell Mortgage Loans [Member] \| Net Gains on Mortgage Loans [Member]
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	190	(240)	(606)	(446)
Purchased Options [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	(35)	3	34	81
Written Options [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	35	(3)	(34)	(81)
Fixed Income Interest Rate [Member] \| Interest Rate Swap [Member] \| Interest Income [Member]
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	(359)	(590)	(249)	(1,708)
Variable Income Interest Rate [Member] \| Interest Rate Swap [Member] \| Interest Income [Member]
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	$ 359	$ 590	$ 249	$ 1,708

Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Amortized intangible assets - core deposits [Abstract]
Gross Carrying Amount	$ 6,118	$ 6,118
Accumulated Amortization	4,359	$ 4,186
Summary of estimated intangible amortization [Abstract]
Six months ending December 31, 2017	173
2018	346
2019	346
2020	346
2021	346
2022	202
Total	$ 1,759

Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares approved for grant (in shares)					500,000
Total compensation cost not yet recognized	$ 2,700				$ 2,700
Total compensation cost not yet recognized, period for recognition					2 years 4 months 24 days
Information regarding options exercised [Abstract]
Intrinsic value	195		$ 60		$ 474	$ 177
Cash proceeds received	33		27		99	59
Tax benefit realized	$ 68		$ 21		166	62
Long-Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units or restricted shares issued in period (in shares)	0		0
Total compensation expense recognized	$ 400		$ 400		800	800
Tax benefit relating to compensation expense recognized	$ 200		100		$ 300	$ 300
Stock Options [Member]
Number of Shares [Roll Forward]
Outstanding, beginning balance (in shares)		211,018			211,018
Granted (in shares)					0
Exercised (in shares)					(26,224)
Forfeited (in shares)					0
Expired (in shares)					0
Outstanding, ending balance (in shares)	184,794				184,794
Vested and expected to vest, period end (in shares)	184,794				184,794
Exercisable, period end (in shares)	184,794				184,794
Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)		$ 5.05			$ 5.05
Exercised (in dollars per share)					3.76
Outstanding, ending balance (in dollars per share)	$ 5.23				5.23
Vested and expected to vest, period end (in dollars per share)	5.23				5.23
Exercisable, period end (in dollars per share)	$ 5.23				$ 5.23
Weighted-Average Remaining Contractual Term (Years) [Abstract]
Outstanding, Weighted Average Remaining Contractual Term					4 years 7 months 6 days
Vested and Expected to Vest, Weighted-Average Remaining Contractual Term					4 years 7 months 6 days
Exercisable, Weighted Average Remaining Contractual Term					4 years 7 months 6 days
Aggregate Intrinsic Value [Abstract]
Outstanding, Aggregate Intrinsic Value	$ 3,053				$ 3,053
Vested and Expected to Vest, Aggregate Intrinsic Value	3,053				3,053
Exercisable, Aggregate Intrinsic Value	$ 3,053				$ 3,053
Non-Vested Restricted Stock and PSUs [Member]
Number of Shares [Roll Forward]
Outstanding, beginning balance (in shares)		296,422			296,422
Granted (in shares)					68,473
Vested (in shares)					(56,681)
Forfeited (in shares)					(7,321)
Outstanding, ending balance (in shares)	300,893				300,893
Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding, beginning balance (in dollars per share)		$ 14.52			$ 14.52
Granted (in dollars per share)					21.07
Vested (in dollars per share)					14.85
Forfeited (in dollars per share)					15.73
Outstanding, ending balance (in dollars per share)	$ 15.86				$ 15.86
Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issues as retainer fees (in shares)					5,000	4,000
Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares approved for grant (in shares)					200,000
Total compensation expense recognized	$ 40		30		$ 70	$ 60
Tax benefit relating to compensation expense recognized	$ 10		$ 10		$ 30	$ 20
Officers [Member] \| Restricted Stock [Member] \| Long-Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units or restricted shares issued in period (in shares)		50,000		70,000
Vesting period					3 years	3 years
Officers [Member] \| Performance Stock Units [Member] \| Long-Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units or restricted shares issued in period (in shares)		20,000		30,000
Vesting period					3 years	3 years

Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Tax (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax [Abstract]
Income tax expense	$ 2,663	$ 2,611	$ 5,284	$ 4,568
Gross unrecognized tax benefits	$ 800		$ 800		$ 800
Mepco [Member]
Valuation Allowance [Line Items]
Valuation allowance against deferred tax assets					$ 1,100
ASU 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Tax benefit relating to compensation expense recognized		$ (300)		$ (300)

Regulatory Matters (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Regulatory Matters [Abstract]
Undivided profits	$ 11,800
Components of regulatory capital [Abstract]
Total shareholders' equity	262,453	$ 248,980	$ 246,923	$ 251,092
Add (deduct) [Abstract]
Accumulated other comprehensive (gain) loss for regulatory purposes	(3,812)	(9,108)
Intangible assets	(1,759)	(1,932)
Consolidated [Member]
Total capital to risk-weighted assets [Abstract]
Total risk-based capital	298,454	286,289
Minimum for Adequately Capitalized Institutions, Amount	$ 154,583	$ 144,413
Actual, Ratio	15.45%	15.86%
Minimum for Adequately Capitalized Institutions, Ratio	8.00%	8.00%
Tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount	$ 276,978	$ 265,405
Minimum for Adequately Capitalized Institutions, Amount	$ 115,937	$ 108,309
Actual, Ratio	14.33%	14.70%
Minimum for Adequately Capitalized Institutions, Ratio	6.00%	6.00%
Common equity tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount	$ 245,795	$ 238,996
Minimum for Adequately Capitalized Institutions, Amount	$ 86,953	$ 81,232
Actual, Ratio	12.72%	13.24%
Minimum for Adequately Capitalized Institutions, Ratio	4.50%	4.50%
Tier 1 capital to average assets [Abstract]
Tier 1 capital	$ 276,978	$ 265,405
Minimum for Adequately Capitalized Institutions, Amount	$ 103,173	$ 101,112
Actual, Ratio	10.74%	10.50%
Minimum for Adequately Capitalized Institutions, Ratio	4.00%	4.00%
Components of regulatory capital [Abstract]
Total shareholders' equity	$ 262,453	$ 248,980
Add (deduct) [Abstract]
Accumulated other comprehensive (gain) loss for regulatory purposes	(1,985)	3,310
Intangible assets	(1,407)	(1,159)
Disallowed deferred tax assets	(13,266)	(12,135)
Common equity tier 1 capital	245,795	238,996
Qualifying trust preferred securities	34,500	34,500
Disallowed deferred tax assets	(3,317)	(8,091)
Tier 1 capital	276,978	265,405
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets	21,476	20,884
Total risk-based capital	298,454	286,289
Independent Bank [Member]
Total capital to risk-weighted assets [Abstract]
Total risk-based capital	277,429	270,855
Minimum for Adequately Capitalized Institutions, Amount	154,410	144,223
Minimum for Well Capitalized Institutions, Amount	$ 193,013	$ 180,279
Actual, Ratio	14.37%	15.02%
Minimum for Adequately Capitalized Institutions, Ratio	8.00%	8.00%
Minimum for Well-Capitalized Institutions, Ratio	10.00%	10.00%
Tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount	$ 255,953	$ 249,971
Minimum for Adequately Capitalized Institutions, Amount	115,808	108,167
Minimum for Well-Capitalized Institutions, Amount	$ 154,410	$ 144,223
Actual, Ratio	13.26%	13.87%
Minimum for Adequately Capitalized Institutions, Ratio	6.00%	6.00%
Minimum for Well Capitalized Institutions, Ratio	8.00%	8.00%
Common equity tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount	$ 255,953	$ 249,971
Minimum for Adequately Capitalized Institutions, Amount	86,856	81,126
Minimum for Well-Capitalized Institutions, Amount	$ 125,459	$ 117,181
Actual, Ratio	13.26%	13.87%
Minimum for Adequately Capitalized Institutions, Ratio	4.50%	4.50%
Minimum for Well Capitalized Institutions, Ratio	6.50%	6.50%
Tier 1 capital to average assets [Abstract]
Tier 1 capital	$ 255,953	$ 249,971
Minimum for Adequately Capitalized Institutions, Amount	103,115	101,019
Minimum for Well-Capitalized Institutions, Amount	$ 128,894	$ 126,274
Actual, Ratio	9.93%	9.90%
Minimum for Adequately Capitalized Institutions, Ratio	4.00%	4.00%
Minimum for Well-Capitalized Institutions, Ratio	5.00%	5.00%
Components of regulatory capital [Abstract]
Total shareholders' equity	$ 266,093	$ 258,814
Add (deduct) [Abstract]
Accumulated other comprehensive (gain) loss for regulatory purposes	(1,985)	3,310
Intangible assets	(1,407)	(1,159)
Disallowed deferred tax assets	(6,748)	(10,994)
Common equity tier 1 capital	255,953	249,971
Qualifying trust preferred securities	0	0
Disallowed deferred tax assets	0	0
Tier 1 capital	255,953	249,971
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets	21,476	20,884
Total risk-based capital	$ 277,429	$ 270,855

Fair Value Disclosures, Significant Assumptions (Details) - USD ($)
$ in Thousands

Jun. 30, 2017

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Value of collateral-dependent impaired loans that will be reviewed by independent third party, minimum

$ 250

Value of collateral-dependent impaired loans that will be reviewed by special assets group, maximum

250

286

$ 410

583,725

610,616

45,693

35,946

U.S. Agency [Member]

U.S. Agency Residential Mortgage-Backed [Member]

28,398

28,988

U.S. Agency Commercial Mortgage-Backed [Member]

144,484

156,289

Private Label Mortgage-Backed [Member]

11,577

12,632

Other Asset Backed [Member]

25,332

34,727

Obligations of States and Political Subdivisions [Member]

126,898

146,709

179,764

170,899

Corporate [Member]

62,409

56,180

Trust Preferred [Member]

Foreign Government [Member]

2,761

2,579

Fair Value, Measurements, Recurring [Member]

2,102

1,613

286

410

45,693

35,946

14,515

^[1]

2,222

2,251

Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]

^[2]

1,116

975

Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]

28,398

28,988

Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]

144,484

156,289

Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]

11,577

12,632

Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]

25,332

34,727

Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]

126,898

146,709

Fair Value, Measurements, Recurring [Member] | Corporate [Member]

179,764

170,899

Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]

62,409

56,180

Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]

2,761

2,579

Fair Value, Measurements, Nonrecurring [Member]

2,102

1,613

Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]

^[3]

8,163

Land, land development & construction - real estate

^[4]

287

255

^[4]

^[4]

1,241

1,342

Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]

^[4]

378

361

Land, land development & construction - real estate

^[5],[6]

2,863

^[6]

176

^[6]

162

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]

^[6]

133

286

410

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member]

286

410

^[1]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]

^[2]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]

^[3]

Land, land development & construction - real estate

^[4]

^[4]

^[4]

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]

^[4]

Land, land development & construction - real estate

^[5],[6]

^[6]

^[6]

Significant Other Observable Inputs (Level 2) [Member]

^[6]

583,725

610,616

2,222

2,251

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]

1,116

975

45,693

35,946

^[1]

2,222

2,251

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]

^[2]

1,116

975

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]

28,398

28,988

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]

144,484

156,289

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]

11,577

12,632

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]

25,332

34,727

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]

126,898

146,709

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member]

179,764

170,899

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]

62,409

56,180

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]

2,761

2,579

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member]

2,102

1,613

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]

^[3]

Land, land development & construction - real estate

^[4]

^[4]

^[4]

Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]

^[4]

Land, land development & construction - real estate

^[5],[6]

2,863

^[6]

^[6]

Significant Unobservable Inputs (Level 3) [Member]

^[6]

14,515

8,163

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]

14,515

^[1]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]

^[2]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member]

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]

^[3]

8,163

Land, land development & construction - real estate

^[4]

287

255

^[4]

^[4]

1,241

1,342

Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]

^[4]

378

361

Land, land development & construction - real estate

^[5],[6]

^[6]

176

^[6]

162

Impaired Loans Commercial [Member]

^[6]

$ 5

$ 133

[1]	Included in accrued income and other assets
[2]	Included in accrued expenses and other liabilities
[3]	Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance.
[4]	Only includes impaired loans with specific loss allocations based on collateral value.
[5]	Level 2 valuation is based on a signed purchase agreement.
[6]	Only includes other real estate with subsequent write downs to fair value.

Fair Value Disclosures, Changes in Fair Value for Financial Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Impairment charges recognized [Abstract]
Capitalized mortgage loan servicing rights, carrying amount					$ 8,200
Capitalized mortgage loan servicing rights, valuation allowance					2,300
Capitalized mortgage loan servicing rights		$ 600		$ 2,100
Collateral dependent loans, carrying amount	$ 2,600		$ 2,600		4,000
Collateral dependent loans, valuation allowance	700		700		2,000
Additional provision for loan losses on impaired loans	100	(100)	300	300
Other real estate, carrying amount	200		200		3,200
Other real estate, valuation allowance	100		100		$ 800
Other real estate, additional charge	$ 30	$ 40	40	60
Trading Securities [Member]
Changes in fair value for financial assets [Abstract]
Net Gains (Losses) on Assets			(124)	64
Total Change in Fair Values Included in Current Period Earnings			(124)	64
Loans Held For Sale [Member]
Changes in fair value for financial assets [Abstract]
Net Gains (Losses) on Assets			666	478
Total Change in Fair Values Included in Current Period Earnings			666	$ 478
Capitalized Mortgage Loan Servicing Rights [Member]
Changes in fair value for financial assets [Abstract]
Mortgage Loan Servicing, net			(1,495)
Total Change in Fair Values Included in Current Period Earnings			$ (1,495)

Fair Value Disclosures, Reconciliation for all Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward]
Change in accounting	$ 14,515		$ 14,515
Capitalized Mortgage Loan Servicing Rights [Member]
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward]
Beginning balance	14,727	$ 0	0	$ 0
Change in accounting					$ 0	$ 14,213	$ 0	$ 0
Total losses realized and unrealized [Abstract]
Included in results of operations	(1,231)	0	(1,495)	0
Included in other comprehensive income	0	0	0	0
Purchases, issuances, settlements, maturities and calls	1,019	0	1,797	0
Transfers in and/or out of Level 3	0	0	0	0
Ending balance	14,515	0	14,515	0
Amount of total losses for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at June 30	(1,231)	0	(1,495)	0
Capitalized Mortgage Loan Servicing Rights [Member] \| As Adjusted [Member]
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward]
Beginning balance	$ 14,727	$ 0	$ 14,213	$ 0

Fair Value Disclosures, Quantitative Information About Level 3 (Details) - USD ($)

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Unobservable Inputs Weighted Average [Abstract]

Total impaired collateral value

$ 200,000

Impaired Loans Commercial [Member] | Minimum [Member]

Unobservable Inputs Weighted Average [Abstract]

Discount rate

0.00%

Impaired Loans Commercial [Member] | Maximum [Member]

Unobservable Inputs Weighted Average [Abstract]

Discount rate

100.00%

Significant Unobservable Inputs (Level 3) [Member]

Asset (Liability) Fair Value [Abstract]

$ 14,515,000

$ 8,163,000

Impaired loan [Abstract]

1,540,000

1,446,000

^[1]

Mortgage

378,000

361,000

Other real estate [Abstract]

Present Value of Net Servicing Revenue [Member]

176,000

Mortgage

$ 167,000

$ 231,000

Unobservable Inputs Weighted Average [Abstract]

Discount rate

10.09%

10.07%

Cost to service

$ 81

$ 83

Ancillary income

$ 24

Float rate

1.96%

1.97%

Sales Comparison Approach [Member] | Impaired Loans Commercial [Member]

Unobservable Inputs Weighted Average [Abstract]

Adjustment for differences between comparable sales

(2.30%)

(1.50%)

^[1]

Sales Comparison Approach [Member] | Impaired Loans Mortgage [Member]

Unobservable Inputs Weighted Average [Abstract]

Adjustment for differences between comparable sales

(2.90%)

(4.70%)

Sales Comparison Approach [Member] | Other Real Estate Commercial [Member]

Unobservable Inputs Weighted Average [Abstract]

Adjustment for differences between comparable sales

(22.50%)

Sales Comparison Approach [Member] | Other Real Estate Mortgage [Member]

Unobservable Inputs Weighted Average [Abstract]

Adjustment for differences between comparable sales

(14.10%)

(5.10%)

[1]

Fair Value Disclosures, Difference Between Aggregate Fair Value and Aggregate Remaining Contractual Principal (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Loans held for sale [Abstract]
Aggregate Fair Value	$ 45,693	$ 35,946
Difference	1,103	437
Contractual Principal	$ 44,590	$ 35,509

Fair Values of Financial Instruments (Details) - USD ($)
$ in Thousands

Jun. 30, 2017

Dec. 31, 2016

$ 5,339

$ 5,591

286

410

Federal Home Loan Bank and Federal Reserve Bank Stock

583,725

610,616

15,543

85,524

9,433

Payment plan receivables and commercial loans held for sale

35,569

31,400

Reciprocal deposits included in deposits with no stated maturity

13,200

7,400

Reciprocal deposits included in deposits with stated maturity

33,400

31,300

Recorded Book Balance [Member]

35,513

35,238

24,255

47,956

5,339

5,591

286

410

Federal Home Loan Bank and Federal Reserve Bank Stock

583,725

610,616

15,543

1,836,784

1,655,335

^[1]

7,713

7,316

2,222

2,251

^[2]

1,769,406

1,740,601

^[2]

476,813

485,118

85,524

9,433

35,569

1,118

932

1,116

975

Fair Value [Member]

35,513

35,238

24,255

47,956

5,346

5,611

286

410

583,725

610,616

1,798,133

1,629,587

^[1]

7,713

7,316

2,222

2,251

^[2]

1,769,406

1,740,601

^[2]

474,172

483,469

86,206

10,371

28,379

25,017

1,118

932

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]

1,116

975

35,513

35,238

24,255

47,956

286

410

^[1]

^[2]

1,769,406

1,740,601

^[2]

Significant Other Observable Inputs (Level 2) [Member]

5,346

5,611

583,725

610,616

45,693

67,321

^[1]

2,460

2,364

2,222

2,251

^[2]

^[2]

474,172

483,469

86,206

10,371

28,379

25,017

1,100

911

Significant Unobservable Inputs (Level 3) [Member]

1,116

975

1,752,440

1,562,266

^[1]

5,252

4,947

^[2]

^[2]