v3.5.0.2

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest income:
Loans, including fees	$ 2,406	$ 2,439	$ 4,703	$ 4,842
Investment securities:
Taxable	466	470	976	977
Tax-exempt	199	218	408	453
Federal funds sold	28		56
Interest-bearing deposits	56	37	115	66
Total interest income	3,155	3,164	6,258	6,338
Interest expense:
Deposits	159	179	325	363
Other borrowings	6		9
Total interest expense	165	179	334	363
Net interest income	2,990	2,985	5,924	5,975
Provision for (recovery of) loan losses	(175)	50	(100)	125
Net interest income after provision for loan losses	3,165	2,935	6,024	5,850
Noninterest income:
Service charges on deposits	659	665	1,303	1,333
Gain on sales of securities		121		312
Other operating income	544	273	803	578
Total noninterest income	1,203	1,059	2,106	2,223
Noninterest expense:
Salaries and employee benefits	1,685	1,689	3,419	3,365
Net occupancy and equipment	506	524	981	1,025
Amortization of core deposit intangible		118	118	236
FDIC insurance	61	75	147	168
Other real estate owned, net	(3)	92	(136)	111
Other operating expenses	1,086	1,082	2,134	2,233
Total noninterest expense	3,335	3,580	6,663	7,138
Income before income taxes	1,033	414	1,467	935
Income tax expense	284	66	360	159
Net income	749	348	1,107	776
Preferred dividends	59	59	118	118
Net income available to common stockholders	$ 690	$ 289	$ 989	$ 658
Net income per common share - basic (in dollars per share)	$ 0.31	$ 0.13	$ 0.45	$ 0.3
Net income per common share - diluted (in dollars per share)	$ 0.31	$ 0.13	$ 0.45	$ 0.3
Weighted average common outstanding shares - basic (in shares)	2,207	2,183	2,205	2,180
Weighted average common outstanding shares - diluted (in shares)	2,209	2,212	2,207	2,209

The aggregate expense charged against earnings to allocate the cost of intangible assets (nonphysical assets not used in production) in a systematic and rational manner to the periods expected to benefit from such assets. As a noncash expense, this element is added back to net income when calculating cash provided by or used in operations using the indirect method.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6388964&loc=d3e16225-109274

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=66902209&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275

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