10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2016

Commission File Number: 0-28846

Centrue Financial Corporation

(Exact name of Registrant as specified in its charter)

Delaware	36-3145350
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification number)

122 W. Madison Street, Ottawa, IL 61350

(Address of principal executive offices including zip code)

(815) 431-8400

(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ü] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ü] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[ ]	Accelerated filer	[ ]
Non-accelerated filer	[ ]	Smaller reporting company	[ ü]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [ü].

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Shares outstanding at November 9, 2016
Common Stock, Par Value $0.01	6,513,694

Centrue Financial Corporation

Form 10-Q Index

September 30, 2016

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Income and Comprehensive Income	2
	Consolidated Statements of Cash Flows	4
	Notes to the Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	41
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	42
SIGNATURES		43

CENTRUE FINANCIAL CORPORATION

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

UNAUDITED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT FOR PAR VALUE AND SHARE DATA)

	September 30, 2016			December 31, 2015
ASSETS
Cash and cash equivalents	$	44,745		$	27,655
Securities available-for-sale	183,646			171,440
Restricted securities	10,098			9,116
Loans held for sale	—			735
Loans, net of allowance for loan loss: 2016 - $9,021; 2015 - $8,591	657,774			624,956
Branch assets held for sale	—			16,673
Bank-owned life insurance	35,768			35,103
Mortgage servicing rights	2,052			2,129
Premises and equipment, net	16,500			16,852
Intangible assets, net	166			880
Other real estate owned, net	5,541			8,401
Deferred tax assets, net	35,432			38,180
Other assets	8,361			9,098
Total assets	$	1,000,083		$	961,218
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest-bearing	$	149,537		$	164,137
Interest-bearing	611,414			554,367
Total deposits	760,951			718,504
Federal funds purchased and securities sold under agreements to repurchase	13,093			18,730
Federal Home Loan Bank advances	75,000			76,000
Series B mandatory redeemable preferred stock	209			268
Subordinated debentures	20,620			20,620
Other liabilities	4,328			5,815
Total liabilities	874,201			839,937
Commitments and contingent liabilities	—			—
Stockholders' equity
Series D Fixed Rate, Non-Cumulative Perpetual Preferred Stock,
2,636 shares authorized and issued at September 30, 2016 and
December 31, 2015; aggregate liquidation preference of $2,636	2,636			2,636
Common stock, $0.01 par value; 215,000,000 shares authorized;
6,581,544 shares issued at September 30, 2016 and December 31, 2015	66			66
Surplus	140,687			140,609
Retained earnings (accumulated deficit)	896			(2,958		)
Accumulated other comprehensive loss	(2,277		)	(2,946		)
	142,008			137,407
Treasury stock, at cost, 67,850 shares at September 30, 2016
and December 31, 2015	(16,126		)	(16,126		)
Total stockholders' equity	125,882			121,281
Total liabilities and stockholders' equity	$	1,000,083		$	961,218

See Accompanying Notes to Consolidated Financial Statements

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CENTRUE FINANCIAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Interest income
Loans	$	7,185	$	6,476	$	21,287	$	18,868
Securities
Taxable	679		794		2,242		2,020
Exempt from federal income taxes	23		46		68		122
Federal funds sold and other	41		20		106		67
Total interest income	7,928		7,336		23,703		21,077
Interest expense
Deposits	376		316		955		940
Federal funds purchased and securities sold under
agreements to repurchase	7		13		30		37
Federal Home Loan Bank advances	178		138		578		368
Series B mandatory redeemable preferred stock	3		4		11		12
Subordinated debentures	148		128		435		413
Notes payable	—		—		—		84
Total interest expense	712		599		2,009		1,854
Net interest income	7,216		6,737		21,694		19,223
Provision for loan losses	—		—		300		—
Net interest income after provision for loan losses	7,216		6,737		21,394		19,223
Noninterest income
Service charges	1,010		1,075		2,927		3,010
Mortgage banking income	331		315		810		972
Electronic banking services	624		651		1,924		1,895
Bank-owned life insurance	224		232		665		683
Securities gains, net	79		196		139		297
Income from real estate	53		114		277		434
Gain on sale of OREO	24		47		99		50
Gain on sale of branches	—		—		1,877		—
Gain on sale of other assets	100		—		102		—
Gain on extinguishment of debt	—		—		—		1,750
Other income	54		608		184		750
	2,499		3,238		9,004		9,841

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CENTRUE FINANCIAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Noninterest expense
Salaries and employee benefits	4,176			4,086			12,745			12,394
Occupancy, net	648			706			2,050			2,142
Furniture and equipment	282			259			813			746
Marketing	56			105			143			263
Supplies and printing	51			50			168			170
Telephone	216			204			639			592
Data processing	472			442			1,311			1,258
FDIC insurance	62			281			373			925
Loan processing and collection costs	107			225			256			638
OREO carrying costs	104			187			398			655
OREO valuation adjustment	56			47			86			195
Amortization of intangible assets	238			238			714			714
Other expenses	1,273			2,012			4,023			4,286
	7,741			8,842			23,719			24,978
Income before income taxes	$	1,974		$	1,133		$	6,679		$	4,086
Income tax expense	919			45			2,578			78
Net income	$	1,055		$	1,088		$	4,101		$	4,008
Preferred stock dividends	82			395			247			1,401
Discount on redemption of preferred stock	—			—			—			(13,668		)
Net income for common stockholders	$	973		$	693		$	3,854		$	16,275
Basic earnings per common share(1)	$	0.15		$	0.11		$	0.59		$	3.68
Diluted earnings per common share(1)	$	0.15		$	0.11		$	0.59		$	3.68
Total comprehensive income:
Net income	$	1,055		$	1,088		$	4,101		$	4,008
Change in unrealized gains
on securities available for sale	(137		)	425			1,234			130
Reclassification adjustment for losses (gains)
recognized in income	(79		)	(196		)	(139		)	(297		)
Net unrealized gains (loss)	(216		)	229			1,095			(167		)
Tax effect	(84		)	1			426			—
Other comprehensive income (loss)	(132		)	228			669			(167		)
Total comprehensive income	$	923		$	1,316		$	4,770		$	3,841

⁽¹⁾ Share and per share amounts have been adjusted to reflect the Company's 1:30 reverse stock split effective May 29, 2015

See Accompanying Notes to Consolidated Financial Statements

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CENTRUE FINANCIAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

(IN THOUSANDS)

	Nine Months Ended September 30,
	2016		2015
Cash flows from operating activities
Net income	4,101		4,008
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation	848		868
Amortization of intangible assets	714		714
Amortization of mortgage servicing rights, net	219		257
Amortization of bond premiums, net	1,157		1,045
Share based compensation	77		—
Provision for loan losses	300		—
Provision for deferred income taxes	2,322		—
Earnings on bank-owned life insurance	(665	)	(683	)
OREO valuation adjustment	86		195
Securities gains, net	(139	)	(297	)
Gain on sale of OREO	(99	)	(50	)
Gain on extinguishment of debt	—		(1,750	)
Gain on sale of branches	(1,877	)	—
Gain on sale of other assets	(102	)	—
Proceeds from sales of loans held for sale	18,813		26,561
Origination of loans held for sale	(17,578	)	(21,901	)
Gain on sale of loans	(500	)	(664	)
Change in assets and liabilities
Decrease in other assets	316		92
Decrease in other liabilities	(173	)	(4,449	)
Net cash provided by operating activities	7,820		3,946
Cash flows from investing activities
Proceeds from paydowns of securities available for sale	29,192		24,794
Proceeds from calls and maturities of securities available for sale	9,765		3,530
Proceeds from sales of securities available for sale	36,198		49,584
Purchases of securities available for sale	(87,243	)	(149,842	)
Redemption of Federal Reserve Bank stock	72		179
Purchase of Federal Home Loan Bank stock	—		(1,229	)
Purchase of Federal Reserve Bank stock	(1,054	)	(1,119	)
Net increase in loans	(34,753	)	(62,434	)
Purchase of premises and equipment	(411	)	(483	)
Proceeds from sale of OREO	3,048		639
Sale of branches, net of premium received	(31,444	)	—
Net cash used in investing activities	(76,630	)	(136,381	)

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CENTRUE FINANCIAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

(IN THOUSANDS)

	Nine Months Ended September 30,
	2016			2015
Cash flows from financing activities
Net increase in deposits (1)	92,784			10,711
Net decrease in federal funds purchased
and securities sold under agreements to repurchase	(5,637		)	(7,822		)
Net proceeds (repayments) of advances from the Federal Home Loan Bank	(1,000		)	85,000
Repayment of Notes Payable	—			(8,500		)
Net proceeds from the issuance of Common Stock	—			68,960
Redemption of Series C Cumulative Perpetual Preferred Stock	—			(19,000		)
Dividends paid on preferred stock	(247		)	(395		)
Net cash provided by financing activities	85,900			128,954
Net decrease in cash and cash equivalents	17,090			(3,481		)
Cash and cash equivalents
Beginning of period	27,655			49,167
End of period	$	44,745		$	45,686
Supplemental disclosures of cash flow information
Cash payments for
Interest	$	2,004		$	6,710
Income taxes	232			81
Transfers from loans to other real estate owned	28			292
Transfers from loan portfolio and sold in secondary market	—			315
Loan transfers to branch assets held for sale	1,607			—

⁽¹⁾ Deposits impacted by branch sales during 2016. See Note 10 for additional information.

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Note 1. Summary of SignificantAccounting Policies

Centrue Financial Corporation is a bank holding company organized under the laws of the State of Delaware.  When we use the terms “Centrue,” the “Company,” “we,” “us,” and “our,” we mean Centrue Financial Corporation, a Delaware corporation, and its consolidated subsidiary. When we use the term the “Bank,” we are referring to our wholly owned banking subsidiary, Centrue Bank. The Company and the Bank provide a full range of banking services to individual and corporate customers located in markets extending from the far western and southern suburbs of the Chicago metropolitan area across Central Illinois and metropolitan St. Louis.  These services include demand, time, and savings deposits; business and consumer lending; and mortgage banking. The Company is subject to competition from other financial institutions and nonfinancial institutions providing financial services.  Additionally, the Company and the Bank are subject to regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies.

Basis of presentation

The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities and other-than-temporary impairment of securities, the determination of the allowance for loan losses and valuation of other real estate owned.

For further information with respect to significant accounting policies followed by the Company in the preparation of its consolidated financial statements, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The consolidated financial statements include the accounts of the Company and Centrue Bank. Intercompany balances and transactions have been eliminated in consolidation and certain 2015 amounts have been reclassified to conform to the 2016 presentation. The annualized results of operations during the three and nine months ended September 30, 2016 are not necessarily indicative of the results expected for the year ending December 31, 2016. All financial information in the following tables is in thousands (000s), except share and per share data. In the opinion of management, all normal and recurring adjustments which are necessary to fairly present the results for the interim periods presented have been included.

Reverse Stock Split

Common shares and per share amounts for all periods shown have been restated to reflect the impact of the 1:30 reverse stock split the Company completed effective May 29, 2015.

Capital Event

On March 31, 2015, the Company completed the issuance of $76.0 million of new common stock in a private placement offering, $68.2 million of net proceeds after issuance and registration costs of $7.8 million. A total of 6.3 million shares were sold in the offering at a price of $12.00 per share. In conjunction with the stock offering the Company used the proceeds in part to pay $4.9 million in accrued but unpaid interest on its subordinated debentures, redeemed all $32.7 million of Series C Preferred Stock for $19.0 million, settled $10.3 million in notes payable with a financial institution for $8.5 million and made a $36.0 million capital contribution into Centrue Bank. The remaining proceeds have been and will be used for general corporate purposes.

Recent Accounting Pronouncements

In June 2016 the FASB issued accounting standards update 2016-13 Financial Instruments - Credit Losses, commonly referred to as CECL. The provisions of the update eliminate the probable initial recognition threshold under current GAAP which requires reserves to be based on an incurred loss methodology. Under CECL reserves required for financial assets measured at amortized cost will reflect an organization’s estimate of all expected credit losses over the contractual term of the financial asset and thereby require the use of reasonable and supportable forecasts to estimate future credit losses. Because CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity (HTM) debt securities. Under the provisions of the update credit losses recognized on available for sale (AFS) debt securities will be presented as an allowance as opposed to a write-down. In addition, CECL will modify the accounting for purchased loans, with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Under current GAAP a purchased loan’s contractual balance is adjusted to fair value through a credit discount and no reserve is recorded on the purchased loan upon acquisition. Since under CECL reserves will be established for purchased loans at the time of acquisition the accounting for purchased loans is made more comparable to the accounting for originated loans. Finally, increased disclosure requirements under CECL oblige organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. FASB expects that the evaluation of underwriting standards and credit quality trends by financial statement users will be enhanced with the additional

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

vintage disclosures. For public business entities that are SEC filers the amendments of the update are effective beginning January 1, 2020. Management is in the process of evaluating the impact of CECL on the Company’s financial position, results of operations and cash flows as well as its required disclosures.

In March 2016, the FASB issued an update (ASU No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting.) The guidance in this update affects any entity that issues share-based payment awards to its employees and is intended to simplify several aspects of the accounting for share-based payment awards including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position.

In February 2016, the FASB issued an update (ASU No. 2016-02, Leases) creating FASB Topic 842, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring more disclosures related to leasing transactions. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact on the consolidated financial statements and related disclosures.

In January 2016, the FASB issued an update, ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance in this update requires 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. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently determining the impact of this new guidance on the consolidated financial statements.

In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update will become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. In evaluating this standard, management has determined that the majority of revenue earned by the Company are from revenue streams not included in the scope of this standard and thus no material impact is expected with the adoption of this standard.

Note 2. Earnings Per Share

A reconciliation of the numerators and denominators for earnings per common share computations for the three and nine months ended September 30, 2016 and 2015 is presented below. Common shares, options, and per share amounts for all periods shown have been restated to reflect the impact of the 1:30 reverse stock split the Company completed effective May 29, 2015. Options to purchase 498 and 3,488 shares of common stock were outstanding for September 30, 2016 and 2015, respectively; but were not included in the computation of diluted earnings per share because the exercise price was greater than the average market price and, therefore, were anti-dilutive. Of the 33,321 shares of restricted stock units issued, 3,190 shares and 1,554 shares were considered dilutive for the three and nine month periods ended September 30, 2016, respectively.

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Basic Earnings Per Common Share
Net income	$	1,055		$	1,088		$	4,101		$	4,008
Preferred stock dividends	(82		)	(395		)	(247		)	(1,401		)
Discount on redemption of preferred stock	—			—			—			13,668
Net income for common shareholders	$	973		$	693		$	3,854		$	16,275
Weighted average common shares outstanding	6,513,694			6,485,218			6,513,694			4,420,000
Basic earnings per common share	$	0.15		$	0.11		$	0.59		$	3.68
Diluted Earnings Per Common Share
Weighted average common shares outstanding	6,513,694			6,485,218			6,513,694			4,420,000
Add: dilutive effect of restricted stock units	3,190			—			1,554			—
Weighted average common and dilutive
potential shares outstanding	6,516,884			6,485,218			6,515,248			4,420,000
Diluted earnings per common share	$	0.15		$	0.11		$	0.59		$	3.68

Note 3. Securities

The primary strategic objective related to the Company's securities portfolio is to assist with liquidity and interest rate risk management. The fair value of the securities classified as available-for-sale was $183.6 million at September 30, 2016 compared to $171.4 million at December 31, 2015. The carrying value of securities classified as restricted (Federal Reserve and Federal Home Loan Bank stock) was $10.1 million at September 30, 2016 compared to $9.1 million at December 31, 2015. The Company does not have any securities classified as trading or held-to-maturity.

The following table summarizes the fair value of available-for-sale securities, the related gross unrealized gains and losses recognized in accumulated other comprehensive income, and the amortized cost at September 30, 2016 and December 31, 2015:

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	12,680	$	—	$	(89	)	$	12,591
States and political subdivisions	13,062		76		(11		)	13,127
U.S. government agency residential
mortgage-backed securities	139,627		165		(438		)	139,354
Collateralized residential mortgage obligations:
Agency	15,549		62		(1		)	15,610
Equity securities	2,673		291		—			2,964
	$	183,591	$	594	$	(539	)	$	183,646

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	14,629	$	13	$	(35	)	$	14,607
States and political subdivisions	10,190		16		(25		)	10,181
U.S. government agency residential
mortgage-backed securities	127,039		7		(1,017		)	126,029
Collateralized residential mortgage obligations:
Agency	17,990		—		(157		)	17,833
Equity securities	2,632		158		—			2,790
	$	172,480	$	194	$	(1,234	)	$	171,440

The amounts below include the activity for available-for-sale securities related to sales, maturities and calls:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016			2015
Proceeds from calls and maturities	$	—	$	2,000		$	9,765		$	3,530
Proceeds from sales	16,528		34,959			36,198			49,584
Realized gains	79		272			159			397
Realized losses	—		(76		)	(20		)	(100		)
Net impairment loss recognized in earnings	—		—			—			—

The amortized cost and fair value of the investment securities portfolio are shown below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date and equity securities are shown separately.

	September 30, 2016
	Amortized Cost		Fair Value
Due in one year or less	$	4,311	$	4,321
Due after one year through five years	6,033		6,041
Due after five years through ten years	15,398		15,356
Due after ten years	—		—
U.S. government agency residential mortgage-backed securities	139,627		139,354
Collateralized residential mortgage obligations	15,549		15,610
Equity	2,673		2,964
	$	183,591	$	183,646

Securities with unrealized losses not recognized in income are as follows presented by length of time individual securities have been in a continuous unrealized loss position:

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

	September 30, 2016
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government agencies	$	12,591	$	(89	)	$	—	$	—		$	12,591	$	(89	)
States and political subdivisions	5,586		(11		)	—		—			5,586		(11		)
U.S. government agency residential
mortgage-backed securities	63,962		(355		)	13,412		(83		)	77,374		(438		)
Collateralized residential mortgage
obligations: Agency	3,612		(1		)	—		—			3,612		(1		)
Total temporarily impaired	$	85,751	$	(456	)	$	13,412	$	(83	)	$	99,163	$	(539	)

	December 31, 2015
	Less than 12 Months					12 Months or More				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government agencies	$	10,394	$	(35	)	$	—	$	—	$	10,394	$	(35	)
States and political subdivisions	6,057		(25		)	—		—		6,057		(25		)
U.S. government agency residential
mortgage-backed securities	124,411		(1,017		)	—		—		124,411		(1,017		)
Collateralized residential mortgage
obligations: Agency	17,833		(157		)	—		—		17,833		(157		)
Total temporarily impaired	$	158,695	$	(1,234	)	$	—	$	—	$	158,695	$	(1,234	)

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Note 4. Loans

The major classifications of loans follow:

	Aggregate Principal Amount
	September 30, 2016			December 31, 2015
Commercial	$	68,046		67,360
Agricultural & AG RE	45,520			50,121
Construction, land & development	32,046			26,016
Commercial RE	427,761			391,918
1-4 family mortgages	90,260			95,227
Consumer	3,162			2,905
Total Loans	$	666,795		633,547
Allowance for loan losses	(9,021		)	(8,591	)
Loans, net	$	657,774		624,956

The credit quality indicator utilized by the Company to internally analyze the loan portfolio is the internal risk rating. Internal risk ratings of 0 to 5 are considered pass credits, a risk rating of a 6 is special mention, a risk rating of a 7 is substandard, and a risk rating of an 8 is doubtful. Loans classified as pass credits have no material weaknesses and are performing as agreed. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following table presents the commercial loan portfolio by internal risk rating:

September 30, 2016
	Commercial								Commercial Real Estate
Internal Risk Rating	Closed-end		Lines of Credit		Agriculture & AG RE		Construction, Land & Development		Owner- Occupied		Non-Owner Occupied		Total
Pass	$	23,659	$	42,225	$	45,188	$	31,905	$	192,864	$	224,941	$	560,782
Special Mention	712		740		—		—		1,931		7,342		10,725
Substandard	165		545		332		141		251		432		1,866
Doubtful	—		—		—		—		—		—		—
Total	$	24,536	$	43,510	$	45,520	$	32,046	$	195,046	$	232,715	$	573,373

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

December 31, 2015
	Commercial								Commercial Real Estate
Internal Risk Rating	Closed-end		Lines of Credit		Agriculture & AG RE		Construction, Land & Development		Owner- Occupied		Non-Owner Occupied		Total
Pass	$	24,303	$	42,374	$	50,121	$	25,825	$	164,538	$	203,679	$	510,840
Special Mention	304		250		—		64		7,701		11,512		19,831
Substandard	129		—		—		127		412		4,076		4,744
Doubtful	—		—		—		—		—		—		—
Total	$	24,736	$	42,624	$	50,121	$	26,016	$	172,651	$	219,267	$	535,415

The following table presents the Retail Residential Loan Portfolio by Internal Risk Rating:

	Residential -- 1-4 family
	Senior Lien		Jr. Lien & Lines of Credit		Total
September 30, 2016
Unrated	$	46,719	$	38,144	$	84,863
Special mention	3,208		93		3,301
Substandard	1,334		762		2,096
Doubtful	—		—		—
Total	$	51,261	$	38,999	$	90,260

	Residential -- 1-4 family
	Senior Lien		Jr. Lien & Lines of Credit		Total
December 31, 2015
Unrated	$	48,319	$	41,380	$	89,699
Special mention	4,011		168		4,179
Substandard	1,036		313		1,349
Doubtful	—		—		—
Total	$	53,366	$	41,861	$	95,227

The retail residential loan portfolio is generally unrated. Delinquency is a typical factor in adversely risk rating a credit to a special mention or substandard.

An analysis of activity in the allowance for loan losses for the three months ended September 30, 2016 and 2015 follows:

	Commercial			Agriculture & AG RE		Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2016
Beginning Balance	$	1,185		$	103	$	452	$	5,243		$	1,933		$	9		$	8,925
Charge-offs	(20		)	—		—		—			(73		)	—			(93		)
Recoveries	91			—		4		24			69			1			189
Provision	12			5		152		(234		)	70			(5		)	—
Ending Balance	$	1,268		$	108	$	608	$	5,033		$	1,999		$	5		$	9,021

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

	Commercial			Agriculture & AG RE			Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2015
Beginning Balance	$	1,036		$	65		$	396	$	5,185		$	1,951		$	12		$	8,645
Charge-offs	—			—			—		(24		)	(325		)	(1		)	(350		)
Recoveries	54			2			16		9			24			3			108
Provision	(121		)	(1		)	66		35			25			(4		)	—
Ending Balance	$	969		$	66		$	478	$	5,205		$	1,675		$	10		$	8,403

An analysis of activity in the allowance for loan losses for the nine months ended September 30, 2016 and 2015 follows:

	Commercial			Agriculture & AG RE			Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2016
Beginning Balance	$	648		$	97		$	523	$	5,681		$	1,628		$	14		$	8,591
Charge-offs	(38		)	—			—		(520		)	(170		)	(3		)	(731		)
Recoveries	160			55			28		495			120			3			861
Provision	498			(44		)	57		(623		)	421			(9		)	300
Ending Balance	$	1,268		$	108		$	608	$	5,033		$	1,999		$	5		$	9,021

	Commercial			Agriculture & AG RE			Construction, Land & Development			Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2015
Beginning Balance	$	1,117		$	69		$	711		$	3,999		$	2,075		$	10		$	7,981
Charge-offs	(357		)	—			(3		)	(639		)	(455		)	(4		)	(1,458		)
Recoveries	144			2			43			1,616			45			30			1,880
Provision	65			(5		)	(273		)	229			10			(26		)	—
Ending Balance	$	969		$	66		$	478		$	5,205		$	1,675		$	10		$	8,403

The following is an analysis on the balance in the allowance for loan losses and the recorded investment in impaired loans by portfolio segment based on impairment method as of September 30, 2016 and December 31, 2015:

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

September 30, 2016	Commercial		Agriculture & AG RE		Construction, Land & Development		Commercial RE		1-4 Family Residential		Consumer		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	553	$	—	$	57	$	314	$	582	$	2	$	1,508
Loans collectively evaluated for impairment	715		108		551		4,719		1,417		3		7,513
Total allowance balance:	$	1,268	$	108	$	608	$	5,033	$	1,999	$	5	$	9,021
Loan balances:
Loans individually evaluated for impairment	$	711	$	341	$	141	$	686	$	2,097	$	2	$	3,978
Loans collectively evaluated for impairment	67,335		45,179		31,905		427,075		88,163		3,160		662,817
Total loans balance:	$	68,046	$	45,520	$	32,046	$	427,761	$	90,260	$	3,162	$	666,795

December 31, 2015	Commercial		Agriculture & AG RE		Construction, Land & Development		Commercial RE		1-4 Family Residential		Consumer		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	80	$	—	$	10	$	1,178	$	325	$	1	$	1,594
Loans collectively evaluated for impairment	568		97		513		4,503		1,303		13		6,997
Total allowance balance:	$	648	$	97	$	523	$	5,681	$	1,628	$	14	$	8,591
Loan balances:
Loans individually evaluated for impairment	$	129	$	—	$	127	$	4,488	$	1,348	$	1	$	6,093
Loans collectively evaluated for impairment	67,231		50,121		25,889		387,430		93,879		2,904		627,454
Total loans balance:	$	67,360	$	50,121	$	26,016	$	391,918	$	95,227	$	2,905	$	633,547

Troubled Debt Restructurings:

The Company had troubled debt restructurings (“TDRs”) of $0.23 million and $0.24 million as of September 30, 2016 and December 31, 2015, respectively. Specific reserves were immaterial at September 30, 2016 and December 31, 2015. At September 30, 2016 nonaccrual TDR loans were $0.23 million and $0.24 million at December 31, 2015. There were no TDRs on accrual at September 30, 2016 and December 31, 2015. The Company had no commitments to lend additional amounts to a customer with an outstanding loan that is classified as TDR as of September 30, 2016 and December 31, 2015.

Over the course of a period, the terms of certain loans may be modified as troubled debt restructurings. The modification of the terms of such loans may include one or a combination of the following: a reduction of the stated interest rate of the loan to a below market rate or the payment modification to interest only. A modification involving a reduction of the stated interest rate of the

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

loan would be for periods ranging from 6 months to 16 months. During the three months ended September 30, 2016 and September 30, 2015, there were no loans modified as troubled debt restructurings. During the nine months ended September 30, 2016, there were no loans modified as troubled debt restructurings, compared to the same nine month period ended September 30, 2015 when there were two senior lien 1-4 family residential loan modified as troubled debt restructurings with a pre-modification and post-modification recorded investment of $0.1 million.

The troubled debt restructurings described above did not have a material impact to the allowance for loan losses and did not result in any additional charge-offs during the nine months ended September 30, 2015.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In the nine months ended September 30, 2016 and the nine months ended September 30, 2015 there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification.

The Company evaluates loan modifications to determine if the modification constitutes a troubled debt restructure. A loan modification constitutes a troubled debt restructure if the borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its loans with the Company’s debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting guidelines. TDRs are separately identified for impairment disclosures. If a loan is considered to be collateral dependent loan, the TDR is reported, net, at the fair value of the collateral.

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

The following tables present data on impaired loans:

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Loans with no related allowance recorded:
Commercial
Closed-end	$	—	$	—	$	—	$	—	$	—	$	—
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	341		341		—		85		18		5
Construction, land & development	79		257		—		20		—		—
CRE - all other
Owner occupied	3		3		—		9		—		2
Non-owner occupied	—		—		—		—		—		—
1-4 family residential
Senior lien	252		252		—		218		—		—
Jr. lien & lines of credit	192		192		—		119		4		4
Consumer	—		—		—		—		—		—
Subtotal	867		1,045		—		451		22		11
Loans with an allowance recorded:
Commercial
Closed-end	$	164	$	164	$	102	$	165	$	2	$	2
Line of credit	547		547		451		286		20		19
Agricultural & AG RE	—		—		—		80		—		—
Construction, land & development	62		62		57		115		3		1
CRE - all other
Owner occupied	252		252		113		415		10		7
Non-owner occupied	431		431		201		2,129		—		—
1-4 family residential
Senior lien	1,082		1,100		284		1,079		15		14
Jr. lien & lines of credit	571		571		298		419		12		12
Consumer	2		2		2		2		—		—
Subtotal	3,111		3,129		1,508		4,690		62		55
Total	$	3,978	$	4,174	$	1,508	$	5,141	$	84	$	66

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Loans with no related allowance recorded:
Commercial
Closed-end	$	2	$	2	$	—	$	15	$	1	$	1
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	—		—		—		—		—		—
Construction, land & development	—		—		—		299		—		—
CRE - all other
Owner occupied	6		6		—		78		—		—
Non-owner occupied	—		—		—		—		—		—
1-4 family residential
Senior lien	176		176		—		277		—		—
Jr. lien & lines of credit	71		71		—		88		3		3
Consumer	—		—		—		—		—		—
Subtotal	255		255		—		757		4		4
Loans with an allowance recorded:
Commercial
Closed-end	$	127	$	127	$	80	$	199	$	2	$	2
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	—		—		—		—		—		—
Construction, land & development	127		419		10		120		—		—
CRE - all other
Owner occupied	406		541		100		586		11		9
Non-owner occupied	4,076		4,955		1,078		4,101		17		17
1-4 family residential
Senior lien	859		984		215		1,003		14		10
Jr. lien & lines of credit	242		242		110		230		5		5
Consumer	1		—		1		—		—		—
Subtotal	5,838		7,268		1,594		6,239		49		43
Total	$	6,093	$	7,523	$	1,594	$	6,996	$	53	$	47

The Company determined that there were $1.7 million of loans that were classified as impaired but were considered to be performing (i.e., loans which are accruing interest) loans at September 30, 2016 compared to $0.1 million at December 31, 2015.

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

The following table represents information related to loan portfolio aging:

September 30, 2016	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days Past Due or Nonaccrual		Total Past Due		Current		Total Loans
Commercial
Closed-end	$	—	$	—	$	108	$	108	$	24,428	$	24,536
Line of credit	—		—		—		—		43,510		43,510
Agricultural & AG RE	331		—		—		331		45,189		45,520
Construction, land & development	—		—		79		79		31,967		32,046
CRE - all other
Owner occupied	173		—		20		193		194,853		195,046
Non-owner occupied	—		—		432		432		232,283		232,715
1-4 family residential
Senior lien	—		296		965		1,261		50,000		51,261
Jr. lien & lines of credit	214		35		718		967		38,032		38,999
Consumer	—		—		—		—		3,162		3,162
Total	$	718	$	331	$	2,322	$	3,371	$	663,424	$	666,795

December 31, 2015	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days Past Due or Nonaccrual		Total Past Due		Current		Total Loans
Commercial
Closed-end	$	58	$	—	$	130	$	188	$	24,548	$	24,736
Line of credit	—		—		—		—		42,624		42,624
Agricultural & AG RE	—		—		—		—		50,121		50,121
Construction, land & development	—		—		127		127		25,889		26,016
CRE - all other
Owner occupied	985		—		412		1,397		171,254		172,651
Non-owner occupied	—		—		4,076		4,076		215,191		219,267
1-4 family residential
Senior lien	1,481		21		994		2,496		50,870		53,366
Jr. lien & lines of credit	230		258		268		756		41,105		41,861
Consumer	1		1		—		2		2,903		2,905
Total	$	2,755	$	280	$	6,007	$	9,042	$	624,505	$	633,547

Nonperforming loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. There were no loans past due over 90 days and still accruing interest at September 30, 2016 or at December 31, 2015.

Note 5. Fair Value

The Company measures, monitors, and discloses certain of its assets and liabilities on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Fair value guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value into three broad levels based on the reliability of the input assumptions. The hierarchy gives the highest priority to level 1 measurements and the lowest priority to level 3 measurements and the categorization of where an asset or liability falls within the hierarchy is based on the

18

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows:

Level 1 - Unadjusted quoted prices for identical assets or liabilities traded in active markets.

Level 2 - Observable inputs other than level 1 prices, such as quoted prices for similar instruments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Securities

Available for Sale Securities. The fair value of securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). If the securities could not be priced using quoted market prices, observable market activity or comparable trades, the financial market was considered not active and the assets were classified as Level 3.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes, by measurement hierarchy, the various assets and liabilities of the Company that are measured at fair value on a recurring basis:

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2016
U.S. government agencies	$	12,591	$	—	$	12,591	$	—
State and political subdivisions	13,127		—		8,109		5,018
U.S. government agency residential
mortgage-backed securities	139,354		—		139,354		—
Collateralized mortgage obligations:
Agency	15,610		—		15,610		—
Equities	2,964		—		2,964		—
Available-for-sale securities	$	183,646	$	—	$	178,628	$	5,018

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2015
U.S. government agencies	$	14,607	$	—	$	14,607	$	—
State and political subdivisions	10,181		—		5,160		5,021
U.S. government agency residential
mortgage-backed securities	126,029		—		126,029		—
Collateralized mortgage obligations:
Agency	17,833		—		17,833		—
Equities	2,790		—		2,790		—
Available-for-sale securities	$	171,440	$	—	$	166,419	$	5,021

There were no transfers between Level 1 and Level 2 during the first nine months of 2016 and all of 2015.

Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The following table reconciles the beginning and ending balances of the assets of the Company that are measured at fair value on a recurring basis using significant unobservable inputs.

	Securities Available for Sale
	2016
Beginning balance, January 1	$	5,021
Transfers into Level 3	—
Total gains or losses (realized/unrealized) included in earnings
Sales	—
Security impairment	—
Payment received	—
Other changes in fair value	(3		)
Included in other comprehensive income	—
Ending Balance, September 30	$	5,018

For the period ended September 30, 2016, the Company had $5.0 million of local school district bonds that are measured at fair value on a recurring basis using unobservable inputs. The fair value was obtained from third party sources, and was not adjusted by management.

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CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Assets Measured at Fair Value on a Non-Recurring Basis

The following table summarizes, by measurement hierarchy, financial assets of the Company that are measured at fair value on a non-recurring basis.

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2016
Impaired loans
Commercial
Line of credit	114		—		—		114
CRE - all other
Owner occupied	$	139	$	—	$	—	$	139
1-4 family residential
Senior lien	131		—		—		131
Jr. lien & lines of credit	—		—		—		—
OREO property
CRE - construction, land & development	2,765		—		—		2,765
CRE - all other
Non-owner occupied	1,301		—		—		1,301
1-4 family residential
Senior lien	167		—		—		167

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2015
Impaired loans
1-4 family residential
Senior lien	$	572	$	—	$	—	$	572
OREO property
CRE - construction, land & development	1,140		—		—		1,140
CRE - all other
Non-owner occupied	468		—		—		468
1-4 family residential
Senior lien	131		—		—		131

At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. 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 are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

21

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Impaired loans carried at fair value had a net carrying amount of $0.4 million at September 30, 2016, which is made up of the outstanding balance of $1.0 million with $0.6 million specific loan loss allocation. The effect of these impaired loans carried at fair value on the provision for loans losses was $0.6 million for the nine month period. In 2015 impaired loans carried at fair value had a net carrying amount of $0.6 million which was made up of the outstanding balance of $0.9 million with a specific loan loss allocation of $0.3 million during 2015, resulting in an additional provision for loan losses of $0.1 million for the year ended December 31, 2015. The majority of the Bank's impaired loans are collateralized by real estate.

Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Any write-downs in the carrying value of a property at the time of acquisition are charged against the allowance for loan losses. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Management periodically reviews the carrying value of other real estate owned. Any write-downs of the properties subsequent to acquisition, as well as gains or losses on disposition and income or expense from the operations of other real estate owned, are recognized in operating results in the period they are realized. Fair value is commonly based on recent real estate appraisals. 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 are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

OREO properties measured at fair value, less costs to sell, had a net carrying amount of $2.9 million which is made up of the outstanding balance of $3.6 million, net of a valuation allowance of $0.7 million at September 30, 2016. This compares to 2015 when OREO properties with an outstanding balance of $2.9 million was written down to a fair value of $1.7 million.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015:

September 30, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Line of credit	$	114			20% - 100% (78%)
CRE - all other
Owner occupied	$	139			10% - 55% (41%)
1-4 family residential
Senior lien	131				10% - 60% (54%)
OREO property
CRE - construction, land & development	2,765				5% - 70% (35%)
CRE - all other
Non-owner occupied	1,301				5% - 50% (18%)
1-4 family residential
Senior lien	167				6% - 55% (54%)

22

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

December 31, 2015	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
1-4 family residential
Senior lien	$	572			10% - 60% (17%)
OREO property
CRE - construction, land & development	1,140				5% - 70% (27%)
CRE - all other
Non-owner occupied	468				5% - 50% (16%)
1-4 family residential
Senior lien	131				6% - 55% (30%)

The estimated fair values of the Company’s financial instruments are as follows:

			Fair Value measurements at September 30, 2016 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	44,745	$	44,745	$	—	$	—	$	44,745
Securities	183,646		—		178,628		5,018		183,646
Restricted securities	10,098		—		—		—		NA
Loans held for sale	—		—		—		—		—
Net loans	657,774		—		—		663,761		663,761
Accrued interest receivable	2,275		—		684		1,591		2,275
Financial liabilities
Deposits	$	760,951	$	—	$	761,198	$	—	$	761,198
Federal funds purchased and
securities sold under
agreements to repurchase	13,093		—		13,093		—		13,093
Federal Home Loan Bank advances	75,000		—		75,397		—		75,397
Subordinated debentures	20,620		—		—		16,511		16,511
Series B mandatory redeemable
preferred stock	209		—		211		—		211
Accrued interest payable	241		—		168		73		241

23

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

			Fair Value measurements at December 31, 2015 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	27,655	$	27,655	$	—	$	—	$	27,655
Securities	171,440		—		166,419		5,021		171,440
Restricted securities	9,116		—		—		—		NA
Loans held for sale	735		—		760		—		760
Net loans	624,956		—		—		629,017		629,017
Accrued interest receivable	3,012		—		402		2,610		3,012
Financial liabilities
Deposits	$	718,504	$	—	$	718,689	$	—	$	718,689
Federal funds purchased and
securities sold under
agreements to repurchase	18,730		—		18,730		—		18,730
Federal Home Loan Bank advances	76,000		—		76,271		—		76,271
Notes payable	—		—		—		—		—
Subordinated debentures	20,620		—		—		13,933		13,933
Series B mandatory redeemable
preferred stock	268		—		273		—		273
Accrued interest payable	235		—		169		66		235

Other assets and liabilities of the Company that are not defined as financial instruments are not included in the above disclosures, such as property and equipment. In addition, nonfinancial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earning potential of core deposit accounts, the earnings potential of loan servicing rights, the earnings potential of the trust operations, customer goodwill and similar items.

The methods and assumptions, not previously presented, used to estimate fair values are described as follows:

(a) Cash and Cash Equivalents

The carrying amounts of cash and short-term instruments approximate fair values and are classified as either Level 1 or Level 2. As of September 30, 2016 and December 31, 2015; $44.7 million and $27.7 million was classified as Level 1.

(b) Restricted securities

It is not practical to determine the fair value of restricted securities due to the restrictions placed on its transferability.

(c) Loans

Fair values of loans, excluding loans held for sale, are estimated as follows: Fair values for loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.

(d) Deposits

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

24

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

(e) Short-term Borrowings

The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification.

(f) Other Borrowings

The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification.

(g) Accrued Interest Receivable/Payable

The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification which is consistent with the underlying asset/liability they are associated with.

(h) Off-balance Sheet Instruments

Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

Note 6. Borrowed Funds and Debt Obligations

The scheduled maturities of advances from the FHLB at September 30, 2016 and December 31, 2015 are as follows:

	September 30, 2016				December 31, 2015
Year	Average Interest Rate		Amount		Average Interest Rate		Amount
2016	—	%	—		0.70	%	60,000
2017	1.14		11,000		1.14		11,000
2018	0.48		49,000		3.64		5,000
2019	1.41		10,000		—		—
2020	—		—		—		—
Thereafter	2.46		5,000		—		—
	0.83		$	75,000	0.96		$	76,000

At September 30, 2016 and December 31, 2015no FHLB advances had any call provisions. The Company had two variable rate advances at September 30, 2016, both at 0.25%, and none at year-end 2015. The remaining advances are at fixed rates ranging from 1.06% to 2.46% at September 30, 2016 and 0.21% to 3.64% at year-end 2015.

In connection with the Company completing a $76.0 million recapitalization event on March 31, 2015, a settlement of obligations involving a financial institution was reached in which the Company recognized a gain of $1.8 million representing the difference between the fair value of the consideration issued in the settlement transaction and the carrying value of the amounts due to a financial institution. As a result, the gain has been included as ‘‘gain on extinguishment of debt’’ within income from continuing operations in the accompanying Consolidated Statements of Income for the period ended March 31, 2015 and year ended December 31, 2015. See Note 1 for additional disclosure related to the recapitalization event.

As of September 30, 2016 and December 31, 2015, the Company had no outstanding loan agreements.

Note 7. Income Taxes

In accordance with current income tax accounting guidance, the Company assessed whether a valuation allowance should be established against their deferred tax assets (DTAs) based on consideration of all available evidence using a “more likely than not” standard. The most significant portions of the deductible temporary differences relate to (1) net operating loss carryforwards and (2) the allowance for loan losses.

25

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

In assessing the need for a valuation allowance, both the positive and negative evidence about the realization of DTAs were evaluated. The ultimate realization of DTAs is based on the Company’s ability to carryback net operating losses to prior tax periods, tax planning strategies that are prudent and feasible, the reversal of deductible temporary differences that can be offset by taxable temporary differences and future taxable income.

After evaluating all of the factors previously summarized and considering the weight of the positive evidence compared to the negative evidence, the Company has determined that no valuation allowance was necessary as of September 30, 2016 and December 31, 2015.

Below is a summary of items included in the deferred tax inventory as of September 30, 2016 and December 31, 2015:

	September 30, 2016			December 31, 2015
Deferred tax assets
Allowance for loan losses	$	3,510		$	3,342
Deferred compensation, other	430			74
Stock based expense	117			87
Net operating loss carryforwards	30,924			34,180
Securities available-for-sale	—			405
Deferred tax credits	1,030			823
OREO valuation allowance	922			1,059
Depreciation	211			—
Other	205			255
Total deferred tax assets	37,349			40,225
Deferred tax liabilities
Depreciation	$	—		$	(58	)
Adjustments arising from acquisitions	(95		)	(146		)
Mortgage servicing rights	(799		)	(828		)
Securities available-for-sale	(21		)	—
Federal Home Loan Bank dividend received in stock	(450		)	(450		)
Deferred loan fees & costs	(388		)	(399		)
Prepaid expenses	(164		)	(164		)
Total deferred tax liabilities	(1,917		)	(2,045		)
Valuation allowance	—			—
Net deferred tax assets	$	35,432		$	38,180

Note 8. Share Based Compensation

In April 2003, the Company adopted the 2003 Option Plan. Under the 2003 Option Plan, as amended on April 24, 2007, nonqualified options, incentive stock options, restricted stock and/or stock appreciation rights may be granted to employees and outside directors of the Company and its subsidiaries to purchase the Company's common stock at an exercise price to be determined by the executive and compensation committee. Pursuant to the 2003 Option Plan, 19,000 shares of the Company's unissued common stock had been reserved and were available for issuance upon the exercise of options and rights granted under the 2003 Option Plan. The granted options have an exercise period of seven to ten years from the date of grant.

In May 2015, the Company adopted the 2015 Stock Compensation Plan. Under the 2015 Stock Compensation Plan nonqualified options, incentive stock options, restricted stock and/or stock appreciation rights may be granted to employees and outside directors of the Company and its subsidiaries to purchase the Company's common stock at an exercise price to be determined by the compensation committee. A total of 430,000 shares have been made available under the 2015 Stock Compensation Plan. There are currently 356,236 shares available to grant.

There were 33,321 units of restricted stock granted at a grant date fair value of $16.72 per unit for the nine months ended September 30, 2016. At September 30, 2016, none of the restricted stock units were vested. There were 40,443 shares of restricted stock granted for the year ended December 31, 2015.

26

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

There was no compensation cost charged against income for the stock options portion of the equity incentive plans for the nine months ended September 30, 2016 and for the year ended December 31, 2015. There was $0.08 million compensation cost charged against income for the restricted stock portion of the equity incentive plan for the nine months ended September 30, 2016 and $0.5 million charged for the year ended December 31, 2015.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock prior to its deregistration. The Company uses historical data to estimate option exercise and post-vesting termination behavior. (Employee and management options are tracked separately.) The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted for the nine months ended September 30, 2016 and the year ended December 31, 2015.

A status summary of the option plan as of September 30, 2016 and changes during the period ended on that date are presented below:

	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2016	3,156		$	338.72
Granted	—		—
Exercised	—		—
Forfeited	(2,658	)	293.87
Outstanding at end of period	498		$	578.10	0.4 years	$	—
Vested or expected to vest	498		$	578.10	0.4 years	$	—
Options exercisable at period end	498		$	578.10	0.4 years	$	—

Options outstanding at September 30, 2016 and year-end 2015 were as follows:

	Outstanding		Exercisable
Range of Exercise Prices	Number	Weighted Average Remaining Contractual Life	Number	Weighted Average Exercise Price
September 30, 2016
$390.01 - $578.10	498	0.4 years	498	$	578.10
December 31, 2015:
$157.20 - $390.00	2,160	0.2 years	2,160	$	228.33
390.01 - 578.10	996	0.9 years	996	578.10
	3,156	0.4 years	3,156	$	338.72

As of September 30, 2016, there was $0.5 million of total unrecognized compensation cost related to non-vested shares granted under the 2015 Stock Compensation Plan.

Note 9. Regulatory Matters

The Company and Centrue Bank are subject to regulatory capital requirements administered by federal and state banking agencies that involve the quantitative measure of their assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices.  Quantitative measures established by regulations to ensure capital adequacy require the Company and Centrue Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 capital and Common Equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations), and, for the Bank, Tier 1 capital (as defined in the regulations) to average assets (as defined in the regulations).  Failure to meet minimum capital requirements may cause regulatory bodies to initiate certain discretionary and/or mandatory actions that, if undertaken, may have a direct material

27

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

effect on our financial statements.  As of September 30, 2016, Centrue Bank met all capital adequacy requirements to which they were subject, including the guidelines to be considered “well capitalized.”

On July 2, 2013, the Federal Reserve Board and the FDIC approved rules that implement the “Basel III” regulatory capital reforms, as well as certain changes required by the Dodd-Frank Act.  The rules include a common equity Tier 1 capital ratio and conservation buffer of 2.5% of risk-weighted assets, which is in addition to the Tier 1 and Tier 2 risk-based capital requirements.  The capital conservation buffer will be phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk-weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter.  Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. Capital ratios shown for September 30, 2016 are in excess of the Basel III 2016 phase-in level for the capital conservation buffer.

On February 16, 2016 the Company received a formal order terminating the written agreement between the Company, the Bank, and the Federal Reserve Bank of Chicago and the Illinois Department of Financial and Professional Regulation.

	Actual				To Be Adequately Capitalized		To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount	Ratio	Amount	Ratio
As of September 30, 2016
Total capital (to risk-weighted assets)
Centrue Financial	$	126,049	16.2	%	N/A	N/A	N/A	N/A
Centrue Bank	122,180		15.7		62,338	8.0	77,923	10.0
Common equity tier I (to risk-weighted assets)
Centrue Financial	$	106,820	13.7		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		35,065	4.5	50,650	6.5
Tier I capital (to risk-weighted assets)
Centrue Financial	$	117,028	15.0		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		46,754	6.0	62,338	8.0
Tier I leverage ratio (to average assets)
Centrue Financial	$	117,028	12.2		N/A	N/A	N/A	N/A
Centrue Bank	113,159		11.8		38,302	4.0	47,878	5.0

	Actual				To Be Adequately Capitalized				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount	Ratio
As of December 31, 2015
Total capital (to risk-weighted assets)
Centrue Financial	$	118,359	15.6	%	$	60,525	8.0	%	N/A	N/A
Centrue Bank	117,807		15.6		60,463		8.0		75,579	10.0
Common equity tier I (to risk-weighted assets)
Centrue Financial	$	107,678	14.2		$	34,045	4.5		N/A	N/A
Centrue Bank	109,216		14.5		34,011		4.5		49,126	6.5
Tier I capital (to risk-weighted assets)
Centrue Financial	$	109,768	14.5		$	45,394	6.0		N/A	N/A
Centrue Bank	109,216		14.5		45,347		6.0		60,463	8.0
Tier I leverage ratio (to average assets)
Centrue Financial	$	109,768	12.1		$	36,284	4.0		N/A	N/A
Centrue Bank	109,216		12.0		36,505		4.0		45,631	5.0

28

CENTRUE FINANCIAL CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Note 10. Business Acquisitions and Divestitures

On June 17, 2016, Centrue Bank completed the sales of its Fairview Heights, Aviston and St. Rose, Illinois branches. The sales resulted in a reduction of $51.7 million of deposits, $13.1 million of loans and $5.1 million of fixed assets. These transactions generated a net gain of $1.1 million.

Note 11. Subsequent Events

On October 27, 2016, the Company completed the settlement of one of its $10.3 million trust preferred issuances for $9.3 million plus accrued interest. This transaction has created a gain on debt extinguishment of $1.0 million that will be recognized in the fourth quarter of 2016.

29

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

The following management discussion and analysis (“MD&A”) is intended to address the significant factors affecting the Company’s results of operations and financial condition for the three and nine months ended September 30, 2016 as compared to the same period in 2015. In the opinion of management, all normal and recurring adjustments which are necessary to fairly present the results for the interim periods presented have been included. The preparation of financial statements requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. When we use the terms “Centrue,” the “Company,” “we,” “us,” and “our,” we mean Centrue Financial Corporation, a Delaware corporation, and its consolidated subsidiaries. When we use the term the “Bank,” we are referring to our wholly owned banking subsidiary, Centrue Bank.

The MD&A should be read in conjunction with the consolidated financial statements of the Company, and the accompanying notes thereto. Actual results could differ from those estimates. All financial information in the following tables is displayed in thousands (000s), except per share data.

General

Centrue Financial Corporation is a bank holding company organized under the laws of the State of Delaware. The Company provides a full range of products and services to individual and corporate customers extending from the far western and southern suburbs of the Chicago metropolitan area across Central Illinois down to the metropolitan St. Louis area. These products and services include demand, time, and savings deposits; lending; mortgage banking, brokerage, asset management, and trust services. Brokerage, asset management, and trust services are provided to our customers on a referral basis to third party providers. The Company is subject to competition from other financial institutions, including banks, thrifts and credit unions, as well as nonfinancial institutions providing financial services. Additionally, the Company and its subsidiary, Centrue Bank, are subject to regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies.

On June 17, 2016, Centrue Bank completed the sales of its Fairview Heights, Aviston, and St. Rose, Illinois branches. The sales resulted in a reduction of $51.7 million of deposits, $13.1 million of loans and $5.1 million of fixed assets. These transactions generated a net after tax gain of $1.1 million.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. By their nature, changes in these assumptions and estimates could significantly affect the Company's financial position or results of operations. Actual results could differ from those estimates. Information about our critical accounting policies and estimates that are of particular significance to the Company are included under Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2015. There have been no changes during 2016 to the critical accounting policies listed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

30

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Results of Operations

Net Income

Net income for the three months ended September 30, 2016 equaled $1.1 million or $0.15 per common diluted share as compared to net income of $1.1 million or $0.11 per common diluted share in the third quarter of 2015. For the first nine months of 2016, the Company had net income of $4.1 million or $0.59 per common diluted share as compared to net income of $4.0 million or $3.68 per common diluted share for the same period in 2015.

The results for the first nine months of 2016 were positively impacted by the sale of three branches generating a net after tax gain on sale of $1.1 million. During the first nine months of 2015, the Company had a $1.8 million gain on extinguishment of debt, representing the difference between the fair value of the consideration issued in the settlement transaction and the carrying value of the amounts due to a financial institution in connection with the settlement obligation.

Net Interest Income/ Margin

Net interest income is the difference between income earned on interest-earning assets and the interest expense incurred for the funding sources used to finance these assets. Changes in net interest income generally occur due to fluctuations in the volume of earning assets and paying liabilities and rates earned and paid, respectively, on those assets and liabilities. The net yield on total interest-earning assets, also referred to as net interest margin, represents net interest income divided by average interest-earning assets. Net interest margin measures how efficiently the Company uses its earning assets and underlying capital. The Company’s long-term objective is to manage those assets and liabilities to provide the largest possible amount of income while balancing interest rate, credit, liquidity and capital risks. For purposes of this discussion, both net interest income and margin have been adjusted to a fully tax equivalent basis for certain tax-exempt securities and loans.

Fully tax equivalent net interest income for the third quarter 2016 totaled $7.2 million, representing an increase of $0.4 million or 5.88% compared to $6.8 million for the same period in 2015. This increase in income is primarily due to an increase in interest earning assets.

The net interest margin was 3.38% for the third quarter of 2016, representing an increase of four basis points from the 3.34% recorded in the third quarter of 2015. The improvement in the net interest margin is being driven by the growth in the loan portfolio.

Fully tax equivalent net interest income for the nine months ended September 30, 2016 totaled $21.7 million, representing an increase of $2.4 million or 12.44% compared to $19.3 million earned during the same period in 2015. The net interest margin was 3.45% for the nine months ended September 30, 2016, representing an increase of three basis points from 3.42% recorded in the same period of 2015. The increase in net interest income and the net interest margin was driven by the same factor impacting the third quarter.

31

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

AVERAGE BALANCE SHEET
AND ANALYSIS OF NET INTEREST INCOME
	Three Months Ended September 30,
	2016						2015
	Average Balance		Interest/Income Expense		Average Rate		Average Balance		Interest/Income Expense		Average Rate		Change due to:
													Volume			Rate		Net
ASSETS
Interest-earning assets
Interest-earning deposits	$	1,059	$	37	13.90	%	$	2,011	$	17	3.35	%	$	(45	)	$	65	$	20
Securities
Taxable(1)	184,543		679		1.46		196,193		794		1.61		(115		)	—		(115		)
Exempt from federal income taxes(1)(2)	4,052		34		3.34		7,145		70		3.89		(36		)	—		(36		)
Total securities (tax equivalent)	188,595		713		1.50		203,338		864		1.69		(151		)	—		(151		)
Federal funds sold and other	620		4		2.57		620		3		1.92		—			1		1
Loans(3)(4)(5)
Commercial	97,826		1,018		4.14		104,347		1,062		4.04		(96		)	52		(44		)
Real estate	558,673		6,121		4.36		490,627		5,368		4.34		706			47		753
Installment and other	3,553		51		5.71		2,911		48		6.54		(2		)	5		3
Gross loans (tax equivalent)	660,052		7,190		4.33		597,885		6,478		4.30		608			104		712
Total interest-earnings assets	850,326		7,944		3.72		803,854		7,362		3.63		412			170		582
Noninterest-earning assets
Cash and cash equivalents	44,212						46,200
Premises and equipment, net	16,572						22,341
Other assets	78,740						47,308
Total nonearning assets	139,524						115,849
Total assets	$	989,850					$	919,703

LIABILITIES & STOCKHOLDERS’
EQUITY
Interest-bearing liabilities
NOW accounts	131,874		33		0.10		131,685		30		0.09		(2		)	5			3
Money market accounts	131,684		90		0.27		119,833		54		0.18		(12		)	48			36
Savings deposits	118,885		3		0.01		124,089		3		0.01		—			—			—
Time deposits	205,375		250		0.48		193,727		229		0.47		32			(11		)	21
Federal funds purchased and repurchase
Agreements	12,871		7		0.22		18,510		13		0.28		(5		)	(1		)	(6		)
Advances from FHLB	90,261		178		0.78		75,000		138		0.73		22			18			40
Notes payable	20,829		151		2.88		20,888		132		2.51		(13		)	32			19
Total interest-bearing liabilities	711,779		712		0.40		683,732		599		0.35		22			91			113
Noninterest-bearing liabilities
Noninterest-bearing deposits	148,105						147,363
Other liabilities	4,692						5,114
Total noninterest-bearing liabilities	152,797						152,477
Stockholders’ equity	125,274						83,494
Total liabilities and stockholders’ equity	$	989,850					$	919,703
Net interest income (tax equivalent)			$	7,232					$	6,763			$	390		$	79		$	469
Net interest income (tax equivalent)
to total earning assets					3.38	%					3.34	%
Interest-bearing liabilities to earning assets					83.71	%					85.06	%

⁽¹⁾ Average balance and average rate on securities classified as available-for-sale is based on historical amortized cost balances.

⁽²⁾ Interest income and average rate on tax exempt securities and loans are reflected on a tax equivalent basis based upon a statutory federal income tax

rate of 34%.

⁽³⁾ In third quarter 2016 there was $14 in tax equivalent interest included in gross loans and $10 in the same period in 2015.

⁽⁴⁾ Nonaccrual loans are included in the average balances; overdraft loans are excluded in the balances.

⁽⁵⁾ Loan fees are included in the specific loan category.

⁽⁶⁾ Average balances are derived from daily balances.

32

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

AVERAGE BALANCE SHEET
AND ANALYSIS OF NET INTEREST INCOME
	Nine Months Ended September 30, 2016
	2016						2015
	Average Balance		Interest/Income Expense		Average Rate		Average Balance		Interest/Income Expense		Average Rate		Change due to:
													Volume			Rate			Net
ASSETS
Interest-earning assets
Interest-earning deposits	$	2,399	$	93	5.18	%	$	2,983	$	51	2.29	%	$	(39	)	$	81		$	42
Securities
Taxable(1)	176,708		2,242		1.69		168,089		2,020		1.61		59			163			222
Exempt from federal income taxes(1)(2)	4,057		103		3.39		5,905		185		4.19		(64		)	(18		)	(82		)
Total securities (tax equivalent)	180,765		2,345		1.73		173,994		2,205		1.69		(5		)	145			140
Federal funds sold and other	620		13		2.80		2,543		16		0.84		(28		)	25			(3		)
Loans(3)(4)(5)
Commercial	104,084		3,211		4.12		101,279		3,087		4.08		73			51			124
Real estate	550,634		17,940		4.35		471,568		15,664		4.44		2,451			(175		)	2,276
Installment and other	3,203		146		6.09		2,932		132		6.02		5			9			14
Gross loans (tax equivalent)	657,921		21,297		4.32		575,779		18,883		4.38		2,529			(115		)	2,414
Total interest-earnings assets	841,705		23,748		3.77		755,299		21,155		3.74		2,457			136			2,593
Noninterest-earning assets
Cash and cash equivalents	41,519						46,262
Premises and equipment, net	19,784						22,446
Other assets	80,818						48,528
Total nonearning assets	142,121						117,236
Total assets	$	983,826					$	872,535

LIABILITIES & STOCKHOLDERS’
EQUITY
Interest-bearing liabilities
NOW accounts	129,912		84		0.09		118,842		67		0.08		1			16			17
Money market accounts	116,489		191		0.22		119,721		159		0.18		(23		)	55			32
Savings deposits	125,967		11		0.01		122,587		10		0.01		—			1			1
Time deposits	202,490		669		0.44		197,760		704		0.48		13			(48		)	(35		)
Federal funds purchased and repurchase
Agreements	15,042		30		0.27		17,856		37		0.28		(6		)	(1		)	(7		)
Advances from FHLB	89,500		578		0.86		49,737		368		0.99		235			(25		)	210
Notes payable	20,868		446		2.85		24,230		509		2.81		(76		)	13			(63		)
Total interest-bearing liabilities	700,268		2,009		0.38		650,733		1,854		0.38		144			11			155
Noninterest-bearing liabilities
Noninterest-bearing deposits	154,858						148,838
Other liabilities	5,287						6,804
Total noninterest-bearing liabilities	160,145						155,642
Stockholders’ equity	123,413						66,160
Total liabilities and stockholders’ equity	$	983,826					$	872,535
Net interest income (tax equivalent)			$	21,739					$	19,301			$	2,313		$	125		$	2,438
Net interest income (tax equivalent)
to total earning assets					3.45	%					3.42	%
Interest-bearing liabilities to earning assets					83.20	%					86.16	%

⁽¹⁾ Average balance and average rate on securities classified as available-for-sale is based on historical amortized cost balances.

⁽²⁾ Interest income and average rate on tax exempt securities and loans are reflected on a tax equivalent basis based upon a statutory federal income tax

rate of 34%.

⁽³⁾ In 2016 there was $32 in tax equivalent interest included in gross loans and $46 in the same period in 2015.

⁽⁴⁾ Nonaccrual loans are included in the average balances; overdraft loans are excluded in the balances.

⁽⁵⁾ Loan fees are included in the specific loan category.

⁽⁶⁾ Average balances are derived from daily balances.

33

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Provision for Loan Losses

The amount of the provision for loan losses is based on management’s evaluations of the loan portfolio, with particular attention directed toward nonperforming, impaired and other potential problem loans. During these evaluations, consideration is also given to such factors as management's evaluation of specific loans, the level and composition of impaired loans, other nonperforming loans, other identified potential problem loans, historical loss experience, results of examinations by regulatory agencies, results of the independent asset quality review process, the market value of collateral, the estimate of discounted cash flows, the strength and availability of guarantees, concentrations of credits and various other factors, including concentration of credit risk in various industries and current economic conditions.

There was no provision for loan losses taken during both the third quarter 2016 and 2015. As for the first nine months of 2016, the Company recorded $0.3 million for provision for loan losses in comparison to none for the same period in 2015. The lack of need for a provision charge in the third quarter 2016 was driven by the following factors:

• Trends in, and the level of, recoveries realized

• Continued improvements in asset quality metrics

Management continues to update collateral values and evaluate the level of specific allocations for impaired loans. As impaired loans have moved through the liquidation process, many of the previously established specific allocations have been charged off.

Noninterest Income

Noninterest income consists of a wide variety of fee-based revenues, including bank-related service charges on deposits, mortgage revenues and increases in cash surrender value on bank-owned life insurance. Noninterest income totaled $2.5 million for the three months ended September 30, 2016, compared to $3.2 million for the same period in 2015. Excluding gains related to the sale of branches, OREO, securities and other irregularly occurring income, noninterest income decreased $0.2 million. The $0.2 million decrease is mainly attributed to a decrease in income from service charges and from real estate owned.

For the nine months ended September 30, 2016, noninterest income totaled $9.0 million, compared to $9.8 million for the same period in 2015. Excluding gains related to the sale of branches, OREO, securities and other non-recurring gains, noninterest income decreased $0.5 million. The $0.5 million decrease is attributed to a decrease in mortgage banking income along with the same reasons as stated for the quarter.

Noninterest Expense

Noninterest expense is comprised primarily of compensation and employee benefits, occupancy, and other operating expense. Total noninterest expense for the third quarter of 2016 was $7.7 million, compared to $8.8 million recorded during the same period in 2015. Excluding OREO valuation adjustments and other irregularly occurring items from both periods, noninterest expense levels decreased by $0.1 million, or 1.3%. This $0.1 million decrease was mainly driven by lower FDIC insurance premiums, loan processing and collection costs, marketing and OREO carrying costs.

For the nine months ended September 30, 2016, noninterest expense totaled $23.7 million, compared to $25.0 million for the same period in 2015. Excluding OREO valuation adjustments recorded in both periods and other non-recurring items, noninterest expense levels decreased by $0.2 million, or 0.8%. This $0.2 million decrease was attributed to the same reasons as stated above.

Applicable Income Taxes

The Company recorded $2.6 million in income tax expense for the nine months ended September 30, 2016 on pre-tax income of $6.7 million, resulting in an effective tax rate of 38.8%. This increase from the 35.3% for the six months ended June 30, 2016 was due to the execution of a tax planning strategy. The Company’s effective tax rate was lower than the combined statutory rate of 38.9% due to several factors. First, the Company derives interest income from municipal securities and loans, which are exempt from federal tax and certain U.S. government agency securities, which are exempt from state tax. Second, the Company derives income from bank owned life insurance policies, which is exempt from federal and state tax. Finally, state income taxes are recorded net of the federal tax benefit, which lowers the combined effective tax rate.

The Company recorded an immaterial tax expense for the nine months ended September 30, 2015 despite having a full valuation allowance on its deferred tax assets. This was due to estimated Alternative Minimum Tax due on taxable income that could not be offset with net operating loss carry-forwards or credits per IRS guidelines. Excluding this expense, no tax expense or benefit was recorded for the nine months ended September 30, 2015.

34

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Financial Condition

General

Following are highlights of the September 30, 2016 balance sheet when compared to December 31, 2015:

Securities. The primary strategic objective of the Company’s $183.6 million securities available-for-sale from September 30, 2016, which excludes restricted securities, is to minimize interest rate risk, maintain sufficient liquidity, and maximize return. In managing the securities portfolio, the Company minimizes any credit risk and avoids investments in sophisticated and complex investment products. The portfolio includes several callable agency debentures, adjustable rate mortgage pass-throughs, municipal bonds and collateralized mortgage obligations. Collateralized mortgage obligations currently owned are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. The Company does not have any securities classified as trading or held-to-maturity.

The Company’s financial planning anticipates income streams generated by the securities portfolio based on normal maturity and reinvestment. Securities classified as available-for-sale, carried at fair value, were $183.6 million at September 30, 2016 compared to $171.4 million at December 31, 2015. The Company also holds Federal Reserve Board and Federal Home Loan Bank stock which are classified as restricted securities of $10.1 million at September 30, 2016 and $9.1 million at December 31, 2015.

Loans. Total loans, including loans held for sale, equaled $666.8 million, representing an increase of $21.7 million, or 3.36% from December 31, 2015. The net increase from year-end 2015 was related to a combination of new organic loan growth and deeper lending relationships with existing customers that outpaced the $13.1 million in loans that were sold as part of the branch sales and paydowns on existing loans. Competition for new commercial loan opportunities and loan renewals continues to be strong and pressures loan yields.

Deposits. Total deposits equaled $761.0 million at September 30, 2016 compared to $718.5 million recorded at December 31, 2015. The September 30, 2016 deposit balance represents an increase of $42.5 million or 5.92% from December 31, 2015. The net increase from year-end 2015 was largely related to an increase in brokered deposits and public fund accounts. On June 17, 2016, the Company sold three branches which included $51.7 million of deposits.

Nonperforming Assets

The Company's financial statements are prepared on the accrual basis of accounting, including the recognition of interest income on its loan portfolio, unless a loan is placed on nonaccrual status. Loans are placed on nonaccrual status when there are serious doubts regarding the collectibility of all principal and interest due under the terms of the loans. If a loan is placed on nonaccrual status, the loan does not generate current period income for the Company and any amounts received are generally applied first to principal and then to interest. It is the policy of the Company not to renegotiate the terms of a loan because of a delinquent status. Rather, a loan is generally transferred to nonaccrual status if it is not in the process of collection and is delinquent in payment of either principal or interest beyond 90 days.

The classification of a loan as nonaccrual does not necessarily indicate that the principal is uncollectible, in whole or in part. The Bank makes a determination as to collectibility on a case-by-case basis and considers both the adequacy of the collateral and the other resources of the borrower in determining the steps to be taken to collect nonaccrual loans. The final determination as to the steps taken is made based upon the specific facts of each situation. Alternatives that are typically considered to collect nonaccrual loans are foreclosure, collection under guarantees, loan restructuring, or judicial collection actions.

Each of the Company's commercial loans is assigned a rating based upon an internally developed grading system. A separate credit administration department also reviews selected grade assignments on a quarterly basis. Management continuously monitors nonperforming, impaired, and past due loans in an effort to prevent further deterioration of these loans. In addition to our credit administration department, the Company has an independent loan review function which is separate from the lending function and is responsible for the review of new and existing loans.

35

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

The following table sets forth a summary of nonperforming assets:

	September 30,			December 31,
	2016			2015
Nonaccrual loans (including TDRs)	$	2,322		$	6,007
TDRs still accruing interest	—			—
Loans 90 days past due and still accruing interest	—			—
Total nonperforming loans	$	2,322		$	6,007
Other real estate owned	5,541			8,401
Total nonperforming assets	$	7,863		$	14,408
Nonperforming loans to total end of period loans	0.35		%	0.93		%
Nonperforming assets to total end of period loans	1.18			2.23
Nonperforming assets to total end of period assets	0.79			1.50

Total nonperforming assets declined $6.5 million to $7.9 million, or 0.79% of total assets, at September 30, 2016 from $14.4 million at December 31, 2015. Total nonperforming assets included $5.5 million of foreclosed assets and repossessed real estate, and $2.3 million of nonaccrual loans at September 30, 2016 compared to $8.4 million of foreclosed assets and $6.0 million of nonaccrual loans at December 31, 2015.

Nonperforming Loans

Nonperforming loans (nonaccrual, 90 days past due and troubled debt restructures) decreased $3.7 million from December 31, 2015 to September 30, 2016, driven by the resolution of a large non-performing loan relationship.

The level of nonperforming loans to end of period loans was 0.35% as of September 30, 2016 as compared to 0.93% as of December 31, 2015. As a result of the decrease in the nonperforming loans, the allowance to nonperforming loan coverage ratio increased to 388.50% for the period ended September 30, 2016 from 143.02% for the year ended December 31, 2015.

Allowance for Loan Losses

At September 30, 2016, the allowance for loan losses was $9.0 million, or 1.35% of total loans, as compared to $8.6 million, or 1.33% of total loans, at December 31, 2015. The Company recorded $0.3 million of provision to the allowance for loan losses for the nine months ended September 30, 2016. Management believes we are recognizing losses in our portfolio through provisions and charge-offs as credit developments warrant.

Liquidity

The Company manages its liquidity position with the objective of maintaining sufficient funds to respond to the needs of depositors and borrowers and to take advantage of earnings enhancement opportunities. In addition to the normal inflow of funds from core-deposit growth together with repayments and maturities of loans and investments, the Company utilizes other short-term funding sources such as brokered time deposits, securities sold under agreements to repurchase, overnight federal funds purchased from correspondent banks and the acceptance of short-term deposits from public entities, and Federal Home Loan Bank advances.

The Company monitors and manages its liquidity position on several bases, which vary depending upon the time period. As the time period is expanded, other data is factored in, including estimated loan funding requirements, estimated loan payoffs, investment portfolio maturities or calls, and anticipated depository buildups or runoffs.

The Company classifies all of its securities as available-for-sale, thereby maintaining significant liquidity. The Company’s liquidity position is further enhanced by structuring its loan portfolio interest payments as monthly and by the significant representation of retail credit and residential mortgage loans in the Company’s loan portfolio, resulting in a steady stream of loan repayments. In managing its investment portfolio, the Company provides for staggered maturities so that cash flows are provided as such investments mature.

The Company’s cash flows are comprised of three classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Cash flows provided by operating and financing activities offset by cash flows used in investing activities resulted in a net decrease in cash and cash equivalents of $17.1 million from December 31, 2015 to September 30, 2016.

36

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

For the period ended September 30, 2016, the Company experienced a positive net cash flow of $85.9 million in financing activities primarily due to the net increase in deposits. In contrast, net cash outflows of $76.6 million were used by investing activities due to the sale of branches and a net increase in loans. Net cash provided by operating activities was $7.8 million.

Contractual Obligations, Commitments, Contingencies, and Off-Balance Sheet Financial Instruments

The Company has entered into contractual obligations and commitments and off-balance sheet financial instruments. The following tables summarize the Company’s contractual cash obligations and other commitments and off balance sheet instruments as of September 30, 2016:

	Payments Due by Period
	Within 1 Year		1-3 Years		4-5 Years		After 5 Years		Total
Contractual Obligations
Certificates of deposit	$	170,389	$	37,060	$	6,519	$	—	$	213,968
Operating leases	312		499		—		—		811
Series B mandatory redeemable preferred stock	—		209		—		—		209
Subordinated debentures	—		—		—		20,620		20,620
FHLB advances	—		70,000		5,000		—		75,000
Total contractual cash obligations	$	170,701	$	107,768	$	11,519	$	20,620	$	310,608

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, often including obtaining collateral at exercise of the commitment. At September 30, 2016, the Company had $142.7 million in outstanding loan commitments including outstanding commitments for various lines of credit and $2.1 million of standby letters of credit.

Capital Resources

Stockholders' Equity

Stockholders' equity at September 30, 2016 was $125.9 million, an increase of $4.6 million from $121.3 million at December 31, 2015. The change in stockholders’ equity during 2016 was the result of net income for the period and a decrease in accumulated other comprehensive loss. Preferred dividends of $0.2 million where paid on Series D preferred stock during the period ended September 30, 2016.

37

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Capital Measurements

As reflected in the following table, the Bank was considered “well-capitalized” under regulatory defined capital ratios as of September 30, 2016. Capital ratios shown for September 30, 2016 are in excess of the BASEL III 2016 phase-in level for the capital conservation buffer. See Note 9 to the Unaudited Consolidated Financial Statements for additional disclosure on the capital threshold levels:

	Actual				To Be Adequately Capitalized		To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount	Ratio	Amount	Ratio
As of September 30, 2016
Total capital (to risk-weighted assets)
Centrue Financial	$	126,049	16.2	%	N/A	N/A	N/A	N/A
Centrue Bank	122,180		15.7		62,338	8.0	77,923	10.0
Common equity tier I (to risk-weighted assets)
Centrue Financial	$	106,820	13.7		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		35,065	4.5	50,650	6.5
Tier I capital (to risk-weighted assets)
Centrue Financial	$	117,028	15.0		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		46,754	6.0	62,338	8.0
Tier I leverage ratio (to average assets)
Centrue Financial	$	117,028	12.2		N/A	N/A	N/A	N/A
Centrue Bank	113,159		11.8		38,302	4.0	47,878	5.0

Recent Accounting Developments

See Note 1 to the Unaudited Consolidated Financial Statements for information concerning recent accounting developments.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934 as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "estimate," "project," “planned” or “potential” or similar expressions.

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company is hereby identifying important factors that could effect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any forward-looking statements.

Among the factors that could have an impact on the Company’s ability to achieve operating results and the growth plan goals are as follows:

• management’s ability to reduce and effectively manage interest rate risk and the impact of interest rates in general on the volatility of the Company’s net interest income;

• fluctuations in the value of the Company’s investment securities;

• the Company’s ability to ultimately collect on any downgraded loan relationships;

• the Company’s ability to respond and adapt to economic conditions in our geographic market;

• the Company’s ability to adapt successfully to technological changes to compete effectively in the marketplace;

• credit risks and risks from concentrations (by geographic area and by industry) within the Company’s loan portfolio and individual large loans;

• volatility of rate sensitive deposits;

• operational risks, including data processing system failures, fraud or cyber attacks;

38

CENTRUE FINANCIAL CORPORATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

• asset/liability matching risks and liquidity risks;

• the ability to successfully acquire low cost deposits or funding;

• the ability to successfully execute strategies to increase noninterest income;

• the ability to successfully grow non-commercial real estate loans;

• the ability of the Company to continue to realize cost savings and revenue generation opportunities in connection with the synergies of centralizing operations;

• the ability to adopt and implement new regulatory requirements as dictated by the SEC, FASB or other rule-making bodies which govern our industry;

• changes in the general economic or industry conditions, nationally or in the communities in which the Company conducts business;

• the Company’s ability to raise additional capital, if available, to sustain growth or operating results;

• the Company’s ability to dispose of OREO at reasonable values;

• the Company's reliance on third parties for information such as appraisal values, credit scores, and IT capabilities.

39

CENTRUE FINANCIAL CORPORATION

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

(TABLE AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

Item 3.Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Sensitivity Management

The Company performs a net interest income analysis as part of its asset/liability management practices. The net interest income analysis measures the change in net interest income in the event of hypothetical changes in interest rates. This analysis assesses the risk of changes in net interest income in the event of a sudden and sustained 100, 200 and 300 basis point increase in market interest rates or a 100 basis point decrease in market rates. The interest rates scenarios are used for analytical purposes and do not necessarily represent management’s view of future market movements. The tables below present the Company's projected changes in net interest income for the various rate shock levels at September 30, 2016 and December 31, 2015, respectively:

	Change in Net Interest Income Over One Year Horizon
	September 30, 2016					December 31, 2015
	Change					Change
	$			%		$			%
+300 bp	$	1,266		4.42	%	$	1,966		6.89	%
+200 bp	888			3.10		1,264			4.43
+100 bp	445			1.55		649			2.27
Base	—			—		—			—
- 100 bp	(1,435		)	(5.01	)	(1,550		)	(5.43	)

As shown above, the effect of an immediate 200 basis point increase in interest rates as of September 30, 2016 would increase the Company’s net interest income by $0.9 million or 3.10%. The effect of an immediate 100 basis point decrease in rates would decrease the Company’s net interest income by $1.4 million or 5.01%.

40

CENTRUE FINANCIAL CORPORATION

ITEM 4. CONTROLS AND PROCEDURES

Item 4. Controls and Procedures

As of the end of the period covered by this report, the Company carried out an evaluation under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended). Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective in timely alerting them to material information relating to the Company required to be included in the Company’s periodic filings with the Securities and Exchange Commission. It should be noted that in designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. The Company has designed its disclosure controls and procedures to reach a level of reasonable assurance of achieving the desired control objectives and, based on the evaluation described above, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at reaching that level of reasonable assurance.

There was no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the Company’s most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

41

PART II - OTHER INFORMATION

Item 1.Legal Proceedings

In the normal course of business the Company may be involved in various legal proceedings from time to time. The Company does not believe it is currently involved in any claim or action the ultimate disposition of which would have a material adverse affect on the Company’s financial statements.

Item 1A. Risk Factors

The Company did not experience any material changes in the Risk Factors during the Company’s most recently completed fiscal quarter. For specific information about the risks facing the Company refer to the Company’s registration statement on Form S-1 filed with the SEC on October 15, 2015 and the Company Annual Report on Form 10-K filed March 15, 2016.

Item 2.    Recent Sales of Unregistered Securities

On July 29, 2014, the Company issued to (i) Dennis McDonnell and Kathleen McDonnell, the Dennis J. McDonnell Trust dated as of May 9, 1991, and the Dennis J. McDonnell IRA (all related persons under Section 382(l)(3) constructive ownership rules); (ii) Jim Miller; and (iii) Wayne Whalen and Paul Wolff, and WPW Associates, L.P. (both related persons under Section 382(l)(3) constructive ownership rules) 2,635.5462 newly issued shares of Fixed Rate Non-Voting Perpetual Non-Cumulative Preferred Stock, Series D of the Company (the “Series D Preferred”), in exchange for 2,762.24 shares of 7.500% Series A Convertible Preferred Stock and 50,993 shares of Common Stock. The shares of Series D Preferred were issued in reliance on the exemption set forth in Section 3(a)(9) of the Securities Act of 1933, and in connection with this exchange (i) the Company was the issuer of both the shares surrendered and the Series D Preferred issued in the exchange; (ii) the only consideration from the security holders for the exchange was surrender of the Common Stock and 7.500% Series A Convertible Preferred Stock referenced above; (iii) all of the recipients of the Series D Preferred were existing stockholders of the Company; and (iv) the Company paid no fees or commissions to any third party in connection with the exchange or the solicitation of the exchange.

On March 31, 2015, 6,333,333 shares of Common Stock were issued to seventy-two (72) investors. Sandler O’Neil & Partners, L.P and Boenning & Scattergood, Inc. assisted the Company in completing the private placement and were paid commissions of $4,826,150. The proceeds of the offering were used to pay the expenses of the offering, to pay commissions to Sandler O’Neil & Partners, L.P and Boenning & Scattergood, Inc. the proceeds of the issuance were used to repay $4,925,000 of TRuPs preferred dividends; and $27,500,000 was used to retire and redeem senior debt, sub debt, preferred stock, dividends and warrants. The offers, sales and issuances of the securities issued on March 31, 2015 were exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Regulation D promulgated thereunder, and a Form D was filed for the issuance. The recipients represented to the Company that they acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof, appropriate legends were affixed to the securities issued in these transactions and the recipients represented to us that they were accredited investors as defined in Rule 501 promulgated under the Securities Act of 1933.

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

None.

Item 5.Other Information

None.

Item 6. Exhibits

Exhibits:

31.1	Certification of Kurt R. Stevenson, President and Chief Executive Officer, required by Rule 13a - 14(a).
31.2	Certification of Daniel R. Kadolph, Executive Vice President and Chief Financial Officer required by Rule 13a - 14(a).
32.1	Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015; (ii) Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and September 30, 2015; (iii) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and September 30, 2015; (iv) Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and September 30, 2015; and (v) Notes to Unaudited Consolidated Financial Statements.

42

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CENTRUE FINANCIAL CORPORATION
Date:	November 9, 2016	By:	/s/ Kurt R. Stevenson
			Kurt R. Stevenson
			President and Chief Executive Officer

		CENTRUE FINANCIAL CORPORATION
Date:	November 9, 2016	By:	/s/ Daniel R. Kadolph
			Daniel R. Kadolph
			Executive Vice President and Chief Financial Officer

43

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kurt R. Stevenson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Centrue Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15 d - 15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:     November 9, 2016

/s/ Kurt R. Stevenson

Kurt R. Stevenson

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel R. Kadolph, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Centrue Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a‑15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13 a - 15 (f) and 15 d - 15 (f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:     November 9, 2016

/s/ Daniel R. Kadolph

Daniel R. Kadolph

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned hereby certifies in his or her capacity as an officer of Centrue Financial Corporation (the "Company") that the Quarterly Report of the Company on Form 10-Q for the period ended September 30, 2016 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such report.

/s/ Kurt R. Stevenson
Name:	Kurt R. Stevenson
Title:	President and Chief Executive Officer (Principal Executive Officer)
Date:	November 9, 2016

/s/ Daniel R. Kadolph
Name:	Daniel R. Kadolph
Title:	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)
Date:	November 9, 2016

XML

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2016	Nov. 09, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Entity Registrant Name	CENTRUE FINANCIAL CORP
Entity Central Index Key	0001019650
Trading Symbol	cfcb
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,513,694

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 44,745	$ 27,655
Securities available-for-sale	183,646	171,440
Restricted securities	10,098	9,116
Loans held for sale	0	735
Loans, net of allowance for loan loss: 2016 - $9,021; 2015 - $8,591	657,774	624,956
Branch assets held for sale	0	16,673
Bank-owned life insurance	35,768	35,103
Mortgage servicing rights	2,052	2,129
Premises and equipment, net	16,500	16,852
Intangible assets, net	166	880
Other real estate owned, net	5,541	8,401
Deferred tax assets, net	35,432	38,180
Other assets	8,361	9,098
Total assets	1,000,083	961,218
Deposits:
Non-interest-bearing	149,537	164,137
Interest-bearing	611,414	554,367
Total deposits	760,951	718,504
Federal funds purchased and securities sold under agreements to repurchase	13,093	18,730
Federal Home Loan Bank advances	75,000	76,000
Series B mandatory redeemable preferred stock	209	268
Subordinated debentures	20,620	20,620
Other liabilities	4,328	5,815
Total liabilities	874,201	839,937
Commitments and contingent liabilities	0	0
Series D Fixed Rate, Non-Cumulative Perpetual Preferred Stock, 2,636 shares authorized and issued at September 30, 2016 and December 31, 2015; aggregate liquidation preference of $2,636	2,636	2,636
Common stock, $0.01 par value; 215,000,000 shares authorized; 6,581,544 shares issued at September 30, 2016 and December 31, 2015	66	66
Surplus	140,687	140,609
Retained earnings (accumulated deficit)	896	(2,958)
Accumulated other comprehensive loss	(2,277)	(2,946)
Stockholders' equity before treasury stock	142,008	137,407
Treasury stock, at cost, 67,850 shares at September 30, 2016 and December 31, 2015	(16,126)	(16,126)
Total stockholders' equity	125,882	121,281
Total liabilities and stockholders' equity	$ 1,000,083	$ 961,218

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 9,021	$ 8,591
Preferred stock authorized (in shares)	2,636	2,636
Preferred stock issued (in shares)	2,636	2,636
Preferred stock, aggregate liquidation preference	$ 2,636	$ 2,636
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	215,000,000	215,000,000
Common stock issued (in shares)	6,581,544	6,581,544
Treasury stock (in shares)	67,850	67,850

XML

Unaudited Consolidated Statements of Income and Comprehensive Income $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016 USD ($) $ / shares	Sep. 30, 2015 USD ($) $ / shares	Sep. 30, 2016 USD ($) $ / shares	Sep. 30, 2015 USD ($) $ / shares
Interest income
Loans		$ 7,185	$ 6,476	$ 21,287	$ 18,868
Securities
Taxable		679	794	2,242	2,020
Exempt from federal income taxes		23	46	68	122
Federal funds sold and other		41	20	106	67
Total interest income		7,928	7,336	23,703	21,077
Interest expense
Deposits		376	316	955	940
Federal funds purchased and securities sold under agreements to repurchase		7	13	30	37
Federal Home Loan Bank advances		178	138	578	368
Series B mandatory redeemable preferred stock		3	4	11	12
Subordinated debentures		148	128	435	413
Notes payable		0	0	0	84
Total interest expense		712	599	2,009	1,854
Net interest income		7,216	6,737	21,694	19,223
Provision for loan losses		0	0	300	0
Net interest income after provision for loan losses		7,216	6,737	21,394	19,223
Noninterest income
Service charges		1,010	1,075	2,927	3,010
Mortgage banking income		331	315	810	972
Electronic banking services		624	651	1,924	1,895
Bank-owned life insurance		224	232	665	683
Securities gains, net		79	196	139	297
Income from real estate		53	114	277	434
Gain on sale of OREO		24	47	99	50
Gain on sale of branches		0	0	1,877	0
Gain on sale of other assets		100	0	102	0
Gain on extinguishment of debt		0	0	0	1,750
Other income		54	608	184	750
Noninterest income		2,499	3,238	9,004	9,841
Noninterest expense
Salaries and employee benefits		4,176	4,086	12,745	12,394
Occupancy, net		648	706	2,050	2,142
Furniture and equipment		282	259	813	746
Marketing		56	105	143	263
Supplies and printing		51	50	168	170
Telephone		216	204	639	592
Data processing		472	442	1,311	1,258
FDIC insurance		62	281	373	925
Loan processing and collection costs		107	225	256	638
OREO carrying costs		104	187	398	655
OREO valuation adjustment		56	47	86	195
Amortization of intangible assets		238	238	714	714
Other expenses		1,273	2,012	4,023	4,286
Noninterest Expense		7,741	8,842	23,719	24,978
Income before income taxes		1,974	1,133	6,679	4,086
Income tax expense		919	45	2,578	78
Net income		1,055	1,088	4,101	4,008
Preferred stock dividends		82	395	247	1,401
Discount on redemption of preferred stock		0	0	0	(13,668)
Net income for common stockholders		$ 973	$ 693	$ 3,854	$ 16,275
Basic earnings per common share (in dollars per share) | $ / shares	[1]	$ 0.15	$ 0.11	$ 0.59	$ 3.68
Diluted earnings per common share (in dollars per share) | $ / shares	[1]	$ 0.15	$ 0.11	$ 0.59	$ 3.68
Total comprehensive income:
Net income		$ 1,055	$ 1,088	$ 4,101	$ 4,008
Change in unrealized gains on securities available for sale		(137)	425	1,234	130
Reclassification adjustment for losses (gains) recognized in income		(79)	(196)	(139)	(297)
Net unrealized gains (loss)		(216)	229	1,095	(167)
Tax effect		(84)	1	426	0
Other comprehensive income (loss)		(132)	228	669	(167)
Total comprehensive income		$ 923	$ 1,316	$ 4,770	$ 3,841

[1] Share and per share amounts have been adjusted to reflect the Company's 1:30 reverse stock split effective May 29, 2015

XML

Unaudited Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016		Sep. 30, 2015
Cash flows from operating activities
Net income	$ 4,101		$ 4,008
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	848		868
Amortization of intangible assets	714		714
Amortization of mortgage servicing rights, net	219		257
Amortization of bond premiums, net	1,157		1,045
Share based compensation	77		0
Provision for loan losses	300		0
Provision for deferred income taxes	2,322		0
Earnings on bank-owned life insurance	(665)		(683)
OREO valuation adjustment	86		195
Securities gains, net	(139)		(297)
Gain on sale of OREO	(99)		(50)
Gain on extinguishment of debt	0		(1,750)
Gain on sale of branches	(1,877)		0
Gain on sale of other assets	(102)		0
Proceeds from sales of loans held for sale	18,813		26,561
Origination of loans held for sale	(17,578)		(21,901)
Gain on sale of loans	(500)		(664)
Change in assets and liabilities
Decrease in other assets	316		92
Decrease in other liabilities	(173)		(4,449)
Net cash provided by operating activities	7,820		3,946
Cash flows from investing activities
Proceeds from paydowns of securities available for sale	29,192		24,794
Proceeds from calls and maturities of securities available for sale	9,765		3,530
Proceeds from sales of securities available for sale	36,198		49,584
Purchases of securities available for sale	(87,243)		(149,842)
Redemption of Federal Reserve Bank stock	72		179
Purchase of Federal Home Loan Bank stock	0		(1,229)
Purchase of Federal Reserve Bank stock	(1,054)		(1,119)
Net increase in loans	(34,753)		(62,434)
Purchase of premises and equipment	(411)		(483)
Proceeds from sale of OREO	3,048		639
Sale of branches, net of premium received	(31,444)		0
Net cash used in investing activities	(76,630)		(136,381)
Cash flows from financing activities
Net increase in deposits	92,784	[1]	10,711
Net decrease in federal funds purchased and securities sold under agreements to repurchase	(5,637)		(7,822)
Net proceeds (repayments) of advances from the Federal Home Loan Bank	(1,000)		85,000
Repayment of Notes Payable	0		(8,500)
Net proceeds from the issuance of Common Stock	0		68,960
Redemption of Series C Cumulative Perpetual Preferred Stock	0		(19,000)
Dividends paid on preferred stock	(247)		(395)
Net cash provided by financing activities	85,900		128,954
Net decrease in cash and cash equivalents	17,090		(3,481)
Cash and cash equivalents
Beginning of period	27,655		49,167
End of period	44,745		45,686
Cash payments for
Interest	2,004		6,710
Income taxes	232		81
Transfers from loans to other real estate owned	28		292
Transfers from loan portfolio and sold in secondary market	0		315
Loan transfers to branch assets held for sale	$ 1,607		$ 0

[1] Deposits impacted by branch sales during 2016.

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Summary of SignificantAccounting Policies

Centrue Financial Corporation is a bank holding company organized under the laws of the State of Delaware.  When we use the terms “Centrue,” the “Company,” “we,” “us,” and “our,” we mean Centrue Financial Corporation, a Delaware corporation, and its consolidated subsidiary. When we use the term the “Bank,” we are referring to our wholly owned banking subsidiary, Centrue Bank. The Company and the Bank provide a full range of banking services to individual and corporate customers located in markets extending from the far western and southern suburbs of the Chicago metropolitan area across Central Illinois and metropolitan St. Louis.  These services include demand, time, and savings deposits; business and consumer lending; and mortgage banking. The Company is subject to competition from other financial institutions and nonfinancial institutions providing financial services.  Additionally, the Company and the Bank are subject to regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies.

Basis of presentation

The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities and other-than-temporary impairment of securities, the determination of the allowance for loan losses and valuation of other real estate owned.

For further information with respect to significant accounting policies followed by the Company in the preparation of its consolidated financial statements, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The consolidated financial statements include the accounts of the Company and Centrue Bank. Intercompany balances and transactions have been eliminated in consolidation and certain 2015 amounts have been reclassified to conform to the 2016 presentation. The annualized results of operations during the three and nine months ended September 30, 2016 are not necessarily indicative of the results expected for the year ending December 31, 2016. All financial information in the following tables is in thousands (000s), except share and per share data. In the opinion of management, all normal and recurring adjustments which are necessary to fairly present the results for the interim periods presented have been included.

Reverse Stock Split

Common shares and per share amounts for all periods shown have been restated to reflect the impact of the 1:30 reverse stock split the Company completed effective May 29, 2015.

Capital Event

On March 31, 2015, the Company completed the issuance of $76.0 million of new common stock in a private placement offering, $68.2 million of net proceeds after issuance and registration costs of $7.8 million. A total of 6.3 million shares were sold in the offering at a price of $12.00 per share. In conjunction with the stock offering the Company used the proceeds in part to pay $4.9 million in accrued but unpaid interest on its subordinated debentures, redeemed all $32.7 million of Series C Preferred Stock for $19.0 million, settled $10.3 million in notes payable with a financial institution for $8.5 million and made a $36.0 million capital contribution into Centrue Bank. The remaining proceeds have been and will be used for general corporate purposes.

Recent Accounting Pronouncements

In June 2016 the FASB issued accounting standards update 2016-13 Financial Instruments - Credit Losses, commonly referred to as CECL. The provisions of the update eliminate the probable initial recognition threshold under current GAAP which requires reserves to be based on an incurred loss methodology. Under CECL reserves required for financial assets measured at amortized cost will reflect an organization’s estimate of all expected credit losses over the contractual term of the financial asset and thereby require the use of reasonable and supportable forecasts to estimate future credit losses. Because CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity (HTM) debt securities. Under the provisions of the update credit losses recognized on available for sale (AFS) debt securities will be presented as an allowance as opposed to a write-down. In addition, CECL will modify the accounting for purchased loans, with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Under current GAAP a purchased loan’s contractual balance is adjusted to fair value through a credit discount and no reserve is recorded on the purchased loan upon acquisition. Since under CECL reserves will be established for purchased loans at the time of acquisition the accounting for purchased loans is made more comparable to the accounting for originated loans. Finally, increased disclosure requirements under CECL oblige organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. FASB expects that the evaluation of underwriting standards and credit quality trends by financial statement users will be enhanced with the additional vintage disclosures. For public business entities that are SEC filers the amendments of the update are effective beginning January 1, 2020. Management is in the process of evaluating the impact of CECL on the Company’s financial position, results of operations and cash flows as well as its required disclosures.

In March 2016, the FASB issued an update (ASU No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting.) The guidance in this update affects any entity that issues share-based payment awards to its employees and is intended to simplify several aspects of the accounting for share-based payment awards including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position.

In February 2016, the FASB issued an update (ASU No. 2016-02, Leases) creating FASB Topic 842, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring more disclosures related to leasing transactions. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact on the consolidated financial statements and related disclosures.

In January 2016, the FASB issued an update, ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance in this update requires 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. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently determining the impact of this new guidance on the consolidated financial statements.

In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update will become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. In evaluating this standard, management has determined that the majority of revenue earned by the Company are from revenue streams not included in the scope of this standard and thus no material impact is expected with the adoption of this standard.

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Earnings Per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

A reconciliation of the numerators and denominators for earnings per common share computations for the three and nine months ended September 30, 2016 and 2015 is presented below. Common shares, options, and per share amounts for all periods shown have been restated to reflect the impact of the 1:30 reverse stock split the Company completed effective May 29, 2015. Options to purchase 498 and 3,488 shares of common stock were outstanding for September 30, 2016 and 2015, respectively; but were not included in the computation of diluted earnings per share because the exercise price was greater than the average market price and, therefore, were anti-dilutive. Of the 33,321 shares of restricted stock units issued, 3,190 shares and 1,554 shares were considered dilutive for the three and nine month periods ended September 30, 2016, respectively.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Basic Earnings Per Common Share
Net income	$	1,055		$	1,088		$	4,101		$	4,008
Preferred stock dividends	(82		)	(395		)	(247		)	(1,401		)
Discount on redemption of preferred stock	—			—			—			13,668
Net income for common shareholders	$	973		$	693		$	3,854		$	16,275
Weighted average common shares outstanding	6,513,694			6,485,218			6,513,694			4,420,000
Basic earnings per common share	$	0.15		$	0.11		$	0.59		$	3.68
Diluted Earnings Per Common Share
Weighted average common shares outstanding	6,513,694			6,485,218			6,513,694			4,420,000
Add: dilutive effect of restricted stock units	3,190			—			1,554			—
Weighted average common and dilutive
potential shares outstanding	6,516,884			6,485,218			6,515,248			4,420,000
Diluted earnings per common share	$	0.15		$	0.11		$	0.59		$	3.68

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Securities

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

The primary strategic objective related to the Company's securities portfolio is to assist with liquidity and interest rate risk management. The fair value of the securities classified as available-for-sale was $183.6 million at September 30, 2016 compared to $171.4 million at December 31, 2015. The carrying value of securities classified as restricted (Federal Reserve and Federal Home Loan Bank stock) was $10.1 million at September 30, 2016 compared to $9.1 million at December 31, 2015. The Company does not have any securities classified as trading or held-to-maturity.

The following table summarizes the fair value of available-for-sale securities, the related gross unrealized gains and losses recognized in accumulated other comprehensive income, and the amortized cost at September 30, 2016 and December 31, 2015:

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	12,680	$	—	$	(89	)	$	12,591
States and political subdivisions	13,062		76		(11		)	13,127
U.S. government agency residential
mortgage-backed securities	139,627		165		(438		)	139,354
Collateralized residential mortgage obligations:
Agency	15,549		62		(1		)	15,610
Equity securities	2,673		291		—			2,964
	$	183,591	$	594	$	(539	)	$	183,646

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	14,629	$	13	$	(35	)	$	14,607
States and political subdivisions	10,190		16		(25		)	10,181
U.S. government agency residential
mortgage-backed securities	127,039		7		(1,017		)	126,029
Collateralized residential mortgage obligations:
Agency	17,990		—		(157		)	17,833
Equity securities	2,632		158		—			2,790
	$	172,480	$	194	$	(1,234	)	$	171,440

The amounts below include the activity for available-for-sale securities related to sales, maturities and calls:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016			2015
Proceeds from calls and maturities	$	—	$	2,000		$	9,765		$	3,530
Proceeds from sales	16,528		34,959			36,198			49,584
Realized gains	79		272			159			397
Realized losses	—		(76		)	(20		)	(100		)
Net impairment loss recognized in earnings	—		—			—			—

The amortized cost and fair value of the investment securities portfolio are shown below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date and equity securities are shown separately.

	September 30, 2016
	Amortized Cost		Fair Value
Due in one year or less	$	4,311	$	4,321
Due after one year through five years	6,033		6,041
Due after five years through ten years	15,398		15,356
Due after ten years	—		—
U.S. government agency residential mortgage-backed securities	139,627		139,354
Collateralized residential mortgage obligations	15,549		15,610
Equity	2,673		2,964
	$	183,591	$	183,646

Securities with unrealized losses not recognized in income are as follows presented by length of time individual securities have been in a continuous unrealized loss position:

	September 30, 2016
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government agencies	$	12,591	$	(89	)	$	—	$	—		$	12,591	$	(89	)
States and political subdivisions	5,586		(11		)	—		—			5,586		(11		)
U.S. government agency residential
mortgage-backed securities	63,962		(355		)	13,412		(83		)	77,374		(438		)
Collateralized residential mortgage
obligations: Agency	3,612		(1		)	—		—			3,612		(1		)
Total temporarily impaired	$	85,751	$	(456	)	$	13,412	$	(83	)	$	99,163	$	(539	)

	December 31, 2015
	Less than 12 Months					12 Months or More				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government agencies	$	10,394	$	(35	)	$	—	$	—	$	10,394	$	(35	)
States and political subdivisions	6,057		(25		)	—		—		6,057		(25		)
U.S. government agency residential
mortgage-backed securities	124,411		(1,017		)	—		—		124,411		(1,017		)
Collateralized residential mortgage
obligations: Agency	17,833		(157		)	—		—		17,833		(157		)
Total temporarily impaired	$	158,695	$	(1,234	)	$	—	$	—	$	158,695	$	(1,234	)

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Loans

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans

Loans

The major classifications of loans follow:

	Aggregate Principal Amount
	September 30, 2016			December 31, 2015
Commercial	$	68,046		67,360
Agricultural & AG RE	45,520			50,121
Construction, land & development	32,046			26,016
Commercial RE	427,761			391,918
1-4 family mortgages	90,260			95,227
Consumer	3,162			2,905
Total Loans	$	666,795		633,547
Allowance for loan losses	(9,021		)	(8,591	)
Loans, net	$	657,774		624,956

The credit quality indicator utilized by the Company to internally analyze the loan portfolio is the internal risk rating. Internal risk ratings of 0 to 5 are considered pass credits, a risk rating of a 6 is special mention, a risk rating of a 7 is substandard, and a risk rating of an 8 is doubtful. Loans classified as pass credits have no material weaknesses and are performing as agreed. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following table presents the commercial loan portfolio by internal risk rating:

September 30, 2016
	Commercial								Commercial Real Estate
Internal Risk Rating	Closed-end		Lines of Credit		Agriculture & AG RE		Construction, Land & Development		Owner- Occupied		Non-Owner Occupied		Total
Pass	$	23,659	$	42,225	$	45,188	$	31,905	$	192,864	$	224,941	$	560,782
Special Mention	712		740		—		—		1,931		7,342		10,725
Substandard	165		545		332		141		251		432		1,866
Doubtful	—		—		—		—		—		—		—
Total	$	24,536	$	43,510	$	45,520	$	32,046	$	195,046	$	232,715	$	573,373

December 31, 2015
	Commercial								Commercial Real Estate
Internal Risk Rating	Closed-end		Lines of Credit		Agriculture & AG RE		Construction, Land & Development		Owner- Occupied		Non-Owner Occupied		Total
Pass	$	24,303	$	42,374	$	50,121	$	25,825	$	164,538	$	203,679	$	510,840
Special Mention	304		250		—		64		7,701		11,512		19,831
Substandard	129		—		—		127		412		4,076		4,744
Doubtful	—		—		—		—		—		—		—
Total	$	24,736	$	42,624	$	50,121	$	26,016	$	172,651	$	219,267	$	535,415

The following table presents the Retail Residential Loan Portfolio by Internal Risk Rating:

	Residential -- 1-4 family
	Senior Lien		Jr. Lien & Lines of Credit		Total
September 30, 2016
Unrated	$	46,719	$	38,144	$	84,863
Special mention	3,208		93		3,301
Substandard	1,334		762		2,096
Doubtful	—		—		—
Total	$	51,261	$	38,999	$	90,260

	Residential -- 1-4 family
	Senior Lien		Jr. Lien & Lines of Credit		Total
December 31, 2015
Unrated	$	48,319	$	41,380	$	89,699
Special mention	4,011		168		4,179
Substandard	1,036		313		1,349
Doubtful	—		—		—
Total	$	53,366	$	41,861	$	95,227

The retail residential loan portfolio is generally unrated. Delinquency is a typical factor in adversely risk rating a credit to a special mention or substandard.

An analysis of activity in the allowance for loan losses for the three months ended September 30, 2016 and 2015 follows:

	Commercial			Agriculture & AG RE		Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2016
Beginning Balance	$	1,185		$	103	$	452	$	5,243		$	1,933		$	9		$	8,925
Charge-offs	(20		)	—		—		—			(73		)	—			(93		)
Recoveries	91			—		4		24			69			1			189
Provision	12			5		152		(234		)	70			(5		)	—
Ending Balance	$	1,268		$	108	$	608	$	5,033		$	1,999		$	5		$	9,021

	Commercial			Agriculture & AG RE			Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2015
Beginning Balance	$	1,036		$	65		$	396	$	5,185		$	1,951		$	12		$	8,645
Charge-offs	—			—			—		(24		)	(325		)	(1		)	(350		)
Recoveries	54			2			16		9			24			3			108
Provision	(121		)	(1		)	66		35			25			(4		)	—
Ending Balance	$	969		$	66		$	478	$	5,205		$	1,675		$	10		$	8,403

An analysis of activity in the allowance for loan losses for the nine months ended September 30, 2016 and 2015 follows:

	Commercial			Agriculture & AG RE			Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2016
Beginning Balance	$	648		$	97		$	523	$	5,681		$	1,628		$	14		$	8,591
Charge-offs	(38		)	—			—		(520		)	(170		)	(3		)	(731		)
Recoveries	160			55			28		495			120			3			861
Provision	498			(44		)	57		(623		)	421			(9		)	300
Ending Balance	$	1,268		$	108		$	608	$	5,033		$	1,999		$	5		$	9,021

	Commercial			Agriculture & AG RE			Construction, Land & Development			Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2015
Beginning Balance	$	1,117		$	69		$	711		$	3,999		$	2,075		$	10		$	7,981
Charge-offs	(357		)	—			(3		)	(639		)	(455		)	(4		)	(1,458		)
Recoveries	144			2			43			1,616			45			30			1,880
Provision	65			(5		)	(273		)	229			10			(26		)	—
Ending Balance	$	969		$	66		$	478		$	5,205		$	1,675		$	10		$	8,403

The following is an analysis on the balance in the allowance for loan losses and the recorded investment in impaired loans by portfolio segment based on impairment method as of September 30, 2016 and December 31, 2015:

September 30, 2016	Commercial		Agriculture & AG RE		Construction, Land & Development		Commercial RE		1-4 Family Residential		Consumer		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	553	$	—	$	57	$	314	$	582	$	2	$	1,508
Loans collectively evaluated for impairment	715		108		551		4,719		1,417		3		7,513
Total allowance balance:	$	1,268	$	108	$	608	$	5,033	$	1,999	$	5	$	9,021
Loan balances:
Loans individually evaluated for impairment	$	711	$	341	$	141	$	686	$	2,097	$	2	$	3,978
Loans collectively evaluated for impairment	67,335		45,179		31,905		427,075		88,163		3,160		662,817
Total loans balance:	$	68,046	$	45,520	$	32,046	$	427,761	$	90,260	$	3,162	$	666,795

December 31, 2015	Commercial		Agriculture & AG RE		Construction, Land & Development		Commercial RE		1-4 Family Residential		Consumer		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	80	$	—	$	10	$	1,178	$	325	$	1	$	1,594
Loans collectively evaluated for impairment	568		97		513		4,503		1,303		13		6,997
Total allowance balance:	$	648	$	97	$	523	$	5,681	$	1,628	$	14	$	8,591
Loan balances:
Loans individually evaluated for impairment	$	129	$	—	$	127	$	4,488	$	1,348	$	1	$	6,093
Loans collectively evaluated for impairment	67,231		50,121		25,889		387,430		93,879		2,904		627,454
Total loans balance:	$	67,360	$	50,121	$	26,016	$	391,918	$	95,227	$	2,905	$	633,547

Troubled Debt Restructurings:

The Company had troubled debt restructurings (“TDRs”) of $0.23 million and $0.24 million as of September 30, 2016 and December 31, 2015, respectively. Specific reserves were immaterial at September 30, 2016 and December 31, 2015. At September 30, 2016 nonaccrual TDR loans were $0.23 million and $0.24 million at December 31, 2015. There were no TDRs on accrual at September 30, 2016 and December 31, 2015. The Company had no commitments to lend additional amounts to a customer with an outstanding loan that is classified as TDR as of September 30, 2016 and December 31, 2015.

Over the course of a period, the terms of certain loans may be modified as troubled debt restructurings. The modification of the terms of such loans may include one or a combination of the following: a reduction of the stated interest rate of the loan to a below market rate or the payment modification to interest only. A modification involving a reduction of the stated interest rate of the loan would be for periods ranging from 6 months to 16 months. During the three months ended September 30, 2016 and September 30, 2015, there were no loans modified as troubled debt restructurings. During the nine months ended September 30, 2016, there were no loans modified as troubled debt restructurings, compared to the same nine month period ended September 30, 2015 when there were two senior lien 1-4 family residential loan modified as troubled debt restructurings with a pre-modification and post-modification recorded investment of $0.1 million.

The troubled debt restructurings described above did not have a material impact to the allowance for loan losses and did not result in any additional charge-offs during the nine months ended September 30, 2015.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In the nine months ended September 30, 2016 and the nine months ended September 30, 2015 there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification.

The Company evaluates loan modifications to determine if the modification constitutes a troubled debt restructure. A loan modification constitutes a troubled debt restructure if the borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its loans with the Company’s debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting guidelines. TDRs are separately identified for impairment disclosures. If a loan is considered to be collateral dependent loan, the TDR is reported, net, at the fair value of the collateral.

The following tables present data on impaired loans:

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Loans with no related allowance recorded:
Commercial
Closed-end	$	—	$	—	$	—	$	—	$	—	$	—
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	341		341		—		85		18		5
Construction, land & development	79		257		—		20		—		—
CRE - all other
Owner occupied	3		3		—		9		—		2
Non-owner occupied	—		—		—		—		—		—
1-4 family residential
Senior lien	252		252		—		218		—		—
Jr. lien & lines of credit	192		192		—		119		4		4
Consumer	—		—		—		—		—		—
Subtotal	867		1,045		—		451		22		11
Loans with an allowance recorded:
Commercial
Closed-end	$	164	$	164	$	102	$	165	$	2	$	2
Line of credit	547		547		451		286		20		19
Agricultural & AG RE	—		—		—		80		—		—
Construction, land & development	62		62		57		115		3		1
CRE - all other
Owner occupied	252		252		113		415		10		7
Non-owner occupied	431		431		201		2,129		—		—
1-4 family residential
Senior lien	1,082		1,100		284		1,079		15		14
Jr. lien & lines of credit	571		571		298		419		12		12
Consumer	2		2		2		2		—		—
Subtotal	3,111		3,129		1,508		4,690		62		55
Total	$	3,978	$	4,174	$	1,508	$	5,141	$	84	$	66

December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Loans with no related allowance recorded:
Commercial
Closed-end	$	2	$	2	$	—	$	15	$	1	$	1
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	—		—		—		—		—		—
Construction, land & development	—		—		—		299		—		—
CRE - all other
Owner occupied	6		6		—		78		—		—
Non-owner occupied	—		—		—		—		—		—
1-4 family residential
Senior lien	176		176		—		277		—		—
Jr. lien & lines of credit	71		71		—		88		3		3
Consumer	—		—		—		—		—		—
Subtotal	255		255		—		757		4		4
Loans with an allowance recorded:
Commercial
Closed-end	$	127	$	127	$	80	$	199	$	2	$	2
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	—		—		—		—		—		—
Construction, land & development	127		419		10		120		—		—
CRE - all other
Owner occupied	406		541		100		586		11		9
Non-owner occupied	4,076		4,955		1,078		4,101		17		17
1-4 family residential
Senior lien	859		984		215		1,003		14		10
Jr. lien & lines of credit	242		242		110		230		5		5
Consumer	1		—		1		—		—		—
Subtotal	5,838		7,268		1,594		6,239		49		43
Total	$	6,093	$	7,523	$	1,594	$	6,996	$	53	$	47

The Company determined that there were $1.7 million of loans that were classified as impaired but were considered to be performing (i.e., loans which are accruing interest) loans at September 30, 2016 compared to $0.1 million at December 31, 2015.

The following table represents information related to loan portfolio aging:

September 30, 2016	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days Past Due or Nonaccrual		Total Past Due		Current		Total Loans
Commercial
Closed-end	$	—	$	—	$	108	$	108	$	24,428	$	24,536
Line of credit	—		—		—		—		43,510		43,510
Agricultural & AG RE	331		—		—		331		45,189		45,520
Construction, land & development	—		—		79		79		31,967		32,046
CRE - all other
Owner occupied	173		—		20		193		194,853		195,046
Non-owner occupied	—		—		432		432		232,283		232,715
1-4 family residential
Senior lien	—		296		965		1,261		50,000		51,261
Jr. lien & lines of credit	214		35		718		967		38,032		38,999
Consumer	—		—		—		—		3,162		3,162
Total	$	718	$	331	$	2,322	$	3,371	$	663,424	$	666,795

December 31, 2015	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days Past Due or Nonaccrual		Total Past Due		Current		Total Loans
Commercial
Closed-end	$	58	$	—	$	130	$	188	$	24,548	$	24,736
Line of credit	—		—		—		—		42,624		42,624
Agricultural & AG RE	—		—		—		—		50,121		50,121
Construction, land & development	—		—		127		127		25,889		26,016
CRE - all other
Owner occupied	985		—		412		1,397		171,254		172,651
Non-owner occupied	—		—		4,076		4,076		215,191		219,267
1-4 family residential
Senior lien	1,481		21		994		2,496		50,870		53,366
Jr. lien & lines of credit	230		258		268		756		41,105		41,861
Consumer	1		1		—		2		2,903		2,905
Total	$	2,755	$	280	$	6,007	$	9,042	$	624,505	$	633,547

Nonperforming loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. There were no loans past due over 90 days and still accruing interest at September 30, 2016 or at December 31, 2015.

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Fair Value

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

The Company measures, monitors, and discloses certain of its assets and liabilities on a fair value basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Fair value guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value into three broad levels based on the reliability of the input assumptions. The hierarchy gives the highest priority to level 1 measurements and the lowest priority to level 3 measurements and the categorization of where an asset or liability falls within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows:

Level 1 - Unadjusted quoted prices for identical assets or liabilities traded in active markets.

Level 2 - Observable inputs other than level 1 prices, such as quoted prices for similar instruments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Securities

Available for Sale Securities. The fair value of securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). If the securities could not be priced using quoted market prices, observable market activity or comparable trades, the financial market was considered not active and the assets were classified as Level 3.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes, by measurement hierarchy, the various assets and liabilities of the Company that are measured at fair value on a recurring basis:

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2016
U.S. government agencies	$	12,591	$	—	$	12,591	$	—
State and political subdivisions	13,127		—		8,109		5,018
U.S. government agency residential
mortgage-backed securities	139,354		—		139,354		—
Collateralized mortgage obligations:
Agency	15,610		—		15,610		—
Equities	2,964		—		2,964		—
Available-for-sale securities	$	183,646	$	—	$	178,628	$	5,018

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2015
U.S. government agencies	$	14,607	$	—	$	14,607	$	—
State and political subdivisions	10,181		—		5,160		5,021
U.S. government agency residential
mortgage-backed securities	126,029		—		126,029		—
Collateralized mortgage obligations:
Agency	17,833		—		17,833		—
Equities	2,790		—		2,790		—
Available-for-sale securities	$	171,440	$	—	$	166,419	$	5,021

There were no transfers between Level 1 and Level 2 during the first nine months of 2016 and all of 2015.

Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The following table reconciles the beginning and ending balances of the assets of the Company that are measured at fair value on a recurring basis using significant unobservable inputs.

	Securities Available for Sale
	2016
Beginning balance, January 1	$	5,021
Transfers into Level 3	—
Total gains or losses (realized/unrealized) included in earnings
Sales	—
Security impairment	—
Payment received	—
Other changes in fair value	(3		)
Included in other comprehensive income	—
Ending Balance, September 30	$	5,018

For the period ended September 30, 2016, the Company had $5.0 million of local school district bonds that are measured at fair value on a recurring basis using unobservable inputs. The fair value was obtained from third party sources, and was not adjusted by management.

Assets Measured at Fair Value on a Non-Recurring Basis

The following table summarizes, by measurement hierarchy, financial assets of the Company that are measured at fair value on a non-recurring basis.

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2016
Impaired loans
Commercial
Line of credit	114		—		—		114
CRE - all other
Owner occupied	$	139	$	—	$	—	$	139
1-4 family residential
Senior lien	131		—		—		131
Jr. lien & lines of credit	—		—		—		—
OREO property
CRE - construction, land & development	2,765		—		—		2,765
CRE - all other
Non-owner occupied	1,301		—		—		1,301
1-4 family residential
Senior lien	167		—		—		167

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2015
Impaired loans
1-4 family residential
Senior lien	$	572	$	—	$	—	$	572
OREO property
CRE - construction, land & development	1,140		—		—		1,140
CRE - all other
Non-owner occupied	468		—		—		468
1-4 family residential
Senior lien	131		—		—		131

At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. 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 are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Impaired loans carried at fair value had a net carrying amount of $0.4 million at September 30, 2016, which is made up of the outstanding balance of $1.0 million with $0.6 million specific loan loss allocation. The effect of these impaired loans carried at fair value on the provision for loans losses was $0.6 million for the nine month period. In 2015 impaired loans carried at fair value had a net carrying amount of $0.6 million which was made up of the outstanding balance of $0.9 million with a specific loan loss allocation of $0.3 million during 2015, resulting in an additional provision for loan losses of $0.1 million for the year ended December 31, 2015. The majority of the Bank's impaired loans are collateralized by real estate.

Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Any write-downs in the carrying value of a property at the time of acquisition are charged against the allowance for loan losses. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Management periodically reviews the carrying value of other real estate owned. Any write-downs of the properties subsequent to acquisition, as well as gains or losses on disposition and income or expense from the operations of other real estate owned, are recognized in operating results in the period they are realized. Fair value is commonly based on recent real estate appraisals. 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 are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

OREO properties measured at fair value, less costs to sell, had a net carrying amount of $2.9 million which is made up of the outstanding balance of $3.6 million, net of a valuation allowance of $0.7 million at September 30, 2016. This compares to 2015 when OREO properties with an outstanding balance of $2.9 million was written down to a fair value of $1.7 million.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015:

September 30, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Line of credit	$	114			20% - 100% (78%)
CRE - all other
Owner occupied	$	139			10% - 55% (41%)
1-4 family residential
Senior lien	131				10% - 60% (54%)
OREO property
CRE - construction, land & development	2,765				5% - 70% (35%)
CRE - all other
Non-owner occupied	1,301				5% - 50% (18%)
1-4 family residential
Senior lien	167				6% - 55% (54%)

December 31, 2015	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
1-4 family residential
Senior lien	$	572			10% - 60% (17%)
OREO property
CRE - construction, land & development	1,140				5% - 70% (27%)
CRE - all other
Non-owner occupied	468				5% - 50% (16%)
1-4 family residential
Senior lien	131				6% - 55% (30%)

The estimated fair values of the Company’s financial instruments are as follows:

			Fair Value measurements at September 30, 2016 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	44,745	$	44,745	$	—	$	—	$	44,745
Securities	183,646		—		178,628		5,018		183,646
Restricted securities	10,098		—		—		—		NA
Loans held for sale	—		—		—		—		—
Net loans	657,774		—		—		663,761		663,761
Accrued interest receivable	2,275		—		684		1,591		2,275
Financial liabilities
Deposits	$	760,951	$	—	$	761,198	$	—	$	761,198
Federal funds purchased and
securities sold under
agreements to repurchase	13,093		—		13,093		—		13,093
Federal Home Loan Bank advances	75,000		—		75,397		—		75,397
Subordinated debentures	20,620		—		—		16,511		16,511
Series B mandatory redeemable
preferred stock	209		—		211		—		211
Accrued interest payable	241		—		168		73		241

			Fair Value measurements at December 31, 2015 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	27,655	$	27,655	$	—	$	—	$	27,655
Securities	171,440		—		166,419		5,021		171,440
Restricted securities	9,116		—		—		—		NA
Loans held for sale	735		—		760		—		760
Net loans	624,956		—		—		629,017		629,017
Accrued interest receivable	3,012		—		402		2,610		3,012
Financial liabilities
Deposits	$	718,504	$	—	$	718,689	$	—	$	718,689
Federal funds purchased and
securities sold under
agreements to repurchase	18,730		—		18,730		—		18,730
Federal Home Loan Bank advances	76,000		—		76,271		—		76,271
Notes payable	—		—		—		—		—
Subordinated debentures	20,620		—		—		13,933		13,933
Series B mandatory redeemable
preferred stock	268		—		273		—		273
Accrued interest payable	235		—		169		66		235

Other assets and liabilities of the Company that are not defined as financial instruments are not included in the above disclosures, such as property and equipment. In addition, nonfinancial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earning potential of core deposit accounts, the earnings potential of loan servicing rights, the earnings potential of the trust operations, customer goodwill and similar items.

The methods and assumptions, not previously presented, used to estimate fair values are described as follows:

(a) Cash and Cash Equivalents

The carrying amounts of cash and short-term instruments approximate fair values and are classified as either Level 1 or Level 2. As of September 30, 2016 and December 31, 2015; $44.7 million and $27.7 million was classified as Level 1.

(b) Restricted securities

It is not practical to determine the fair value of restricted securities due to the restrictions placed on its transferability.

(c) Loans

Fair values of loans, excluding loans held for sale, are estimated as follows: Fair values for loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.

(d) Deposits

The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification.

(e) Short-term Borrowings

The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification.

(f) Other Borrowings

The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification.

(g) Accrued Interest Receivable/Payable

The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification which is consistent with the underlying asset/liability they are associated with.

(h) Off-balance Sheet Instruments

Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material.

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Borrowed Funds and Debt Obligations

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Borrowed Funds and Debt Obligations

Borrowed Funds and Debt Obligations

The scheduled maturities of advances from the FHLB at September 30, 2016 and December 31, 2015 are as follows:

	September 30, 2016				December 31, 2015
Year	Average Interest Rate		Amount		Average Interest Rate		Amount
2016	—	%	—		0.70	%	60,000
2017	1.14		11,000		1.14		11,000
2018	0.48		49,000		3.64		5,000
2019	1.41		10,000		—		—
2020	—		—		—		—
Thereafter	2.46		5,000		—		—
	0.83		$	75,000	0.96		$	76,000

At September 30, 2016 and December 31, 2015no FHLB advances had any call provisions. The Company had two variable rate advances at September 30, 2016, both at 0.25%, and none at year-end 2015. The remaining advances are at fixed rates ranging from 1.06% to 2.46% at September 30, 2016 and 0.21% to 3.64% at year-end 2015.

In connection with the Company completing a $76.0 million recapitalization event on March 31, 2015, a settlement of obligations involving a financial institution was reached in which the Company recognized a gain of $1.8 million representing the difference between the fair value of the consideration issued in the settlement transaction and the carrying value of the amounts due to a financial institution. As a result, the gain has been included as ‘‘gain on extinguishment of debt’’ within income from continuing operations in the accompanying Consolidated Statements of Income for the period ended March 31, 2015 and year ended December 31, 2015. See Note 1 for additional disclosure related to the recapitalization event.

As of September 30, 2016 and December 31, 2015, the Company had no outstanding loan agreements.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

In accordance with current income tax accounting guidance, the Company assessed whether a valuation allowance should be established against their deferred tax assets (DTAs) based on consideration of all available evidence using a “more likely than not” standard. The most significant portions of the deductible temporary differences relate to (1) net operating loss carryforwards and (2) the allowance for loan losses.

In assessing the need for a valuation allowance, both the positive and negative evidence about the realization of DTAs were evaluated. The ultimate realization of DTAs is based on the Company’s ability to carryback net operating losses to prior tax periods, tax planning strategies that are prudent and feasible, the reversal of deductible temporary differences that can be offset by taxable temporary differences and future taxable income.

After evaluating all of the factors previously summarized and considering the weight of the positive evidence compared to the negative evidence, the Company has determined that no valuation allowance was necessary as of September 30, 2016 and December 31, 2015.

Below is a summary of items included in the deferred tax inventory as of September 30, 2016 and December 31, 2015:

	September 30, 2016			December 31, 2015
Deferred tax assets
Allowance for loan losses	$	3,510		$	3,342
Deferred compensation, other	430			74
Stock based expense	117			87
Net operating loss carryforwards	30,924			34,180
Securities available-for-sale	—			405
Deferred tax credits	1,030			823
OREO valuation allowance	922			1,059
Depreciation	211			—
Other	205			255
Total deferred tax assets	37,349			40,225
Deferred tax liabilities
Depreciation	$	—		$	(58	)
Adjustments arising from acquisitions	(95		)	(146		)
Mortgage servicing rights	(799		)	(828		)
Securities available-for-sale	(21		)	—
Federal Home Loan Bank dividend received in stock	(450		)	(450		)
Deferred loan fees & costs	(388		)	(399		)
Prepaid expenses	(164		)	(164		)
Total deferred tax liabilities	(1,917		)	(2,045		)
Valuation allowance	—			—
Net deferred tax assets	$	35,432		$	38,180

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Share Based Compensation

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share Based Compensation

Share Based Compensation

In April 2003, the Company adopted the 2003 Option Plan. Under the 2003 Option Plan, as amended on April 24, 2007, nonqualified options, incentive stock options, restricted stock and/or stock appreciation rights may be granted to employees and outside directors of the Company and its subsidiaries to purchase the Company's common stock at an exercise price to be determined by the executive and compensation committee. Pursuant to the 2003 Option Plan, 19,000 shares of the Company's unissued common stock had been reserved and were available for issuance upon the exercise of options and rights granted under the 2003 Option Plan. The granted options have an exercise period of seven to ten years from the date of grant.

In May 2015, the Company adopted the 2015 Stock Compensation Plan. Under the 2015 Stock Compensation Plan nonqualified options, incentive stock options, restricted stock and/or stock appreciation rights may be granted to employees and outside directors of the Company and its subsidiaries to purchase the Company's common stock at an exercise price to be determined by the compensation committee. A total of 430,000 shares have been made available under the 2015 Stock Compensation Plan. There are currently 356,236 shares available to grant.

There were 33,321 units of restricted stock granted at a grant date fair value of $16.72 per unit for the nine months ended September 30, 2016. At September 30, 2016, none of the restricted stock units were vested. There were 40,443 shares of restricted stock granted for the year ended December 31, 2015.

There was no compensation cost charged against income for the stock options portion of the equity incentive plans for the nine months ended September 30, 2016 and for the year ended December 31, 2015. There was $0.08 million compensation cost charged against income for the restricted stock portion of the equity incentive plan for the nine months ended September 30, 2016 and $0.5 million charged for the year ended December 31, 2015.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock prior to its deregistration. The Company uses historical data to estimate option exercise and post-vesting termination behavior. (Employee and management options are tracked separately.) The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted for the nine months ended September 30, 2016 and the year ended December 31, 2015.

A status summary of the option plan as of September 30, 2016 and changes during the period ended on that date are presented below:

	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2016	3,156		$	338.72
Granted	—		—
Exercised	—		—
Forfeited	(2,658	)	293.87
Outstanding at end of period	498		$	578.10	0.4 years	$	—
Vested or expected to vest	498		$	578.10	0.4 years	$	—
Options exercisable at period end	498		$	578.10	0.4 years	$	—

Options outstanding at September 30, 2016 and year-end 2015 were as follows:

	Outstanding		Exercisable
Range of Exercise Prices	Number	Weighted Average Remaining Contractual Life	Number	Weighted Average Exercise Price
September 30, 2016
$390.01 - $578.10	498	0.4 years	498	$	578.10
December 31, 2015:
$157.20 - $390.00	2,160	0.2 years	2,160	$	228.33
390.01 - 578.10	996	0.9 years	996	578.10
	3,156	0.4 years	3,156	$	338.72

As of September 30, 2016, there was $0.5 million of total unrecognized compensation cost related to non-vested shares granted under the 2015 Stock Compensation Plan.

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Regulatory Matters

9 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Regulatory Matters

Regulatory Matters

The Company and Centrue Bank are subject to regulatory capital requirements administered by federal and state banking agencies that involve the quantitative measure of their assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices.  Quantitative measures established by regulations to ensure capital adequacy require the Company and Centrue Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 capital and Common Equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations), and, for the Bank, Tier 1 capital (as defined in the regulations) to average assets (as defined in the regulations).  Failure to meet minimum capital requirements may cause regulatory bodies to initiate certain discretionary and/or mandatory actions that, if undertaken, may have a direct material effect on our financial statements.  As of September 30, 2016, Centrue Bank met all capital adequacy requirements to which they were subject, including the guidelines to be considered “well capitalized.”

On July 2, 2013, the Federal Reserve Board and the FDIC approved rules that implement the “Basel III” regulatory capital reforms, as well as certain changes required by the Dodd-Frank Act.  The rules include a common equity Tier 1 capital ratio and conservation buffer of 2.5% of risk-weighted assets, which is in addition to the Tier 1 and Tier 2 risk-based capital requirements.  The capital conservation buffer will be phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk-weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter.  Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. Capital ratios shown for September 30, 2016 are in excess of the Basel III 2016 phase-in level for the capital conservation buffer.

On February 16, 2016 the Company received a formal order terminating the written agreement between the Company, the Bank, and the Federal Reserve Bank of Chicago and the Illinois Department of Financial and Professional Regulation.

	Actual				To Be Adequately Capitalized		To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount	Ratio	Amount	Ratio
As of September 30, 2016
Total capital (to risk-weighted assets)
Centrue Financial	$	126,049	16.2	%	N/A	N/A	N/A	N/A
Centrue Bank	122,180		15.7		62,338	8.0	77,923	10.0
Common equity tier I (to risk-weighted assets)
Centrue Financial	$	106,820	13.7		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		35,065	4.5	50,650	6.5
Tier I capital (to risk-weighted assets)
Centrue Financial	$	117,028	15.0		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		46,754	6.0	62,338	8.0
Tier I leverage ratio (to average assets)
Centrue Financial	$	117,028	12.2		N/A	N/A	N/A	N/A
Centrue Bank	113,159		11.8		38,302	4.0	47,878	5.0

	Actual				To Be Adequately Capitalized				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount	Ratio
As of December 31, 2015
Total capital (to risk-weighted assets)
Centrue Financial	$	118,359	15.6	%	$	60,525	8.0	%	N/A	N/A
Centrue Bank	117,807		15.6		60,463		8.0		75,579	10.0
Common equity tier I (to risk-weighted assets)
Centrue Financial	$	107,678	14.2		$	34,045	4.5		N/A	N/A
Centrue Bank	109,216		14.5		34,011		4.5		49,126	6.5
Tier I capital (to risk-weighted assets)
Centrue Financial	$	109,768	14.5		$	45,394	6.0		N/A	N/A
Centrue Bank	109,216		14.5		45,347		6.0		60,463	8.0
Tier I leverage ratio (to average assets)
Centrue Financial	$	109,768	12.1		$	36,284	4.0		N/A	N/A
Centrue Bank	109,216		12.0		36,505		4.0		45,631	5.0

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Business Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Business Acquisitions and Divestitures

Business Acquisitions and Divestitures

On June 17, 2016, Centrue Bank completed the sales of its Fairview Heights, Aviston and St. Rose, Illinois branches. The sales resulted in a reduction of $51.7 million of deposits, $13.1 million of loans and $5.1 million of fixed assets. These transactions generated a net gain of $1.1 million.

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Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 27, 2016, the Company completed the settlement of one of its $10.3 million trust preferred issuances for $9.3 million plus accrued interest. This transaction has created a gain on debt extinguishment of $1.0 million that will be recognized in the fourth quarter of 2016.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation

Basis of presentation

The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities and other-than-temporary impairment of securities, the determination of the allowance for loan losses and valuation of other real estate owned.

For further information with respect to significant accounting policies followed by the Company in the preparation of its consolidated financial statements, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The consolidated financial statements include the accounts of the Company and Centrue Bank. Intercompany balances and transactions have been eliminated in consolidation and certain 2015 amounts have been reclassified to conform to the 2016 presentation. The annualized results of operations during the three and nine months ended September 30, 2016 are not necessarily indicative of the results expected for the year ending December 31, 2016. All financial information in the following tables is in thousands (000s), except share and per share data. In the opinion of management, all normal and recurring adjustments which are necessary to fairly present the results for the interim periods presented have been included.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In June 2016 the FASB issued accounting standards update 2016-13 Financial Instruments - Credit Losses, commonly referred to as CECL. The provisions of the update eliminate the probable initial recognition threshold under current GAAP which requires reserves to be based on an incurred loss methodology. Under CECL reserves required for financial assets measured at amortized cost will reflect an organization’s estimate of all expected credit losses over the contractual term of the financial asset and thereby require the use of reasonable and supportable forecasts to estimate future credit losses. Because CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity (HTM) debt securities. Under the provisions of the update credit losses recognized on available for sale (AFS) debt securities will be presented as an allowance as opposed to a write-down. In addition, CECL will modify the accounting for purchased loans, with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Under current GAAP a purchased loan’s contractual balance is adjusted to fair value through a credit discount and no reserve is recorded on the purchased loan upon acquisition. Since under CECL reserves will be established for purchased loans at the time of acquisition the accounting for purchased loans is made more comparable to the accounting for originated loans. Finally, increased disclosure requirements under CECL oblige organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. FASB expects that the evaluation of underwriting standards and credit quality trends by financial statement users will be enhanced with the additional vintage disclosures. For public business entities that are SEC filers the amendments of the update are effective beginning January 1, 2020. Management is in the process of evaluating the impact of CECL on the Company’s financial position, results of operations and cash flows as well as its required disclosures.

In March 2016, the FASB issued an update (ASU No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting.) The guidance in this update affects any entity that issues share-based payment awards to its employees and is intended to simplify several aspects of the accounting for share-based payment awards including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position.

In February 2016, the FASB issued an update (ASU No. 2016-02, Leases) creating FASB Topic 842, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring more disclosures related to leasing transactions. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact on the consolidated financial statements and related disclosures.

In January 2016, the FASB issued an update, ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance in this update requires 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. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently determining the impact of this new guidance on the consolidated financial statements.

In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update will become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. In evaluating this standard, management has determined that the majority of revenue earned by the Company are from revenue streams not included in the scope of this standard and thus no material impact is expected with the adoption of this standard.

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of the numerators and denominators for earnings per common share computations for the three and nine months ended September 30, 2016 and 2015 is presented below. Common shares, options, and per share amounts for all periods shown have been restated to reflect the impact of the 1:30 reverse stock split the Company completed effective May 29, 2015. Options to purchase 498 and 3,488 shares of common stock were outstanding for September 30, 2016 and 2015, respectively; but were not included in the computation of diluted earnings per share because the exercise price was greater than the average market price and, therefore, were anti-dilutive. Of the 33,321 shares of restricted stock units issued, 3,190 shares and 1,554 shares were considered dilutive for the three and nine month periods ended September 30, 2016, respectively.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Basic Earnings Per Common Share
Net income	$	1,055		$	1,088		$	4,101		$	4,008
Preferred stock dividends	(82		)	(395		)	(247		)	(1,401		)
Discount on redemption of preferred stock	—			—			—			13,668
Net income for common shareholders	$	973		$	693		$	3,854		$	16,275
Weighted average common shares outstanding	6,513,694			6,485,218			6,513,694			4,420,000
Basic earnings per common share	$	0.15		$	0.11		$	0.59		$	3.68
Diluted Earnings Per Common Share
Weighted average common shares outstanding	6,513,694			6,485,218			6,513,694			4,420,000
Add: dilutive effect of restricted stock units	3,190			—			1,554			—
Weighted average common and dilutive
potential shares outstanding	6,516,884			6,485,218			6,515,248			4,420,000
Diluted earnings per common share	$	0.15		$	0.11		$	0.59		$	3.68

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Securities (Tables)

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Summary of the Fair Value, Gross Unrealized Gains and Losses and Amortized Cost of Securities

The following table summarizes the fair value of available-for-sale securities, the related gross unrealized gains and losses recognized in accumulated other comprehensive income, and the amortized cost at September 30, 2016 and December 31, 2015:

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	12,680	$	—	$	(89	)	$	12,591
States and political subdivisions	13,062		76		(11		)	13,127
U.S. government agency residential
mortgage-backed securities	139,627		165		(438		)	139,354
Collateralized residential mortgage obligations:
Agency	15,549		62		(1		)	15,610
Equity securities	2,673		291		—			2,964
	$	183,591	$	594	$	(539	)	$	183,646

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	14,629	$	13	$	(35	)	$	14,607
States and political subdivisions	10,190		16		(25		)	10,181
U.S. government agency residential
mortgage-backed securities	127,039		7		(1,017		)	126,029
Collateralized residential mortgage obligations:
Agency	17,990		—		(157		)	17,833
Equity securities	2,632		158		—			2,790
	$	172,480	$	194	$	(1,234	)	$	171,440

Activity for Available-for-Sale Securities

The amounts below include the activity for available-for-sale securities related to sales, maturities and calls:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016			2015
Proceeds from calls and maturities	$	—	$	2,000		$	9,765		$	3,530
Proceeds from sales	16,528		34,959			36,198			49,584
Realized gains	79		272			159			397
Realized losses	—		(76		)	(20		)	(100		)
Net impairment loss recognized in earnings	—		—			—			—

Schedule of Contractual Maturity of Securities

The amortized cost and fair value of the investment securities portfolio are shown below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date and equity securities are shown separately.

	September 30, 2016
	Amortized Cost		Fair Value
Due in one year or less	$	4,311	$	4,321
Due after one year through five years	6,033		6,041
Due after five years through ten years	15,398		15,356
Due after ten years	—		—
U.S. government agency residential mortgage-backed securities	139,627		139,354
Collateralized residential mortgage obligations	15,549		15,610
Equity	2,673		2,964
	$	183,591	$	183,646

Schedule of Securities in a Continuous Unrealized Loss Position

Securities with unrealized losses not recognized in income are as follows presented by length of time individual securities have been in a continuous unrealized loss position:

	September 30, 2016
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government agencies	$	12,591	$	(89	)	$	—	$	—		$	12,591	$	(89	)
States and political subdivisions	5,586		(11		)	—		—			5,586		(11		)
U.S. government agency residential
mortgage-backed securities	63,962		(355		)	13,412		(83		)	77,374		(438		)
Collateralized residential mortgage
obligations: Agency	3,612		(1		)	—		—			3,612		(1		)
Total temporarily impaired	$	85,751	$	(456	)	$	13,412	$	(83	)	$	99,163	$	(539	)

	December 31, 2015
	Less than 12 Months					12 Months or More				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government agencies	$	10,394	$	(35	)	$	—	$	—	$	10,394	$	(35	)
States and political subdivisions	6,057		(25		)	—		—		6,057		(25		)
U.S. government agency residential
mortgage-backed securities	124,411		(1,017		)	—		—		124,411		(1,017		)
Collateralized residential mortgage
obligations: Agency	17,833		(157		)	—		—		17,833		(157		)
Total temporarily impaired	$	158,695	$	(1,234	)	$	—	$	—	$	158,695	$	(1,234	)

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Loans (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Summary of Loan Classifications

The major classifications of loans follow:

	Aggregate Principal Amount
	September 30, 2016			December 31, 2015
Commercial	$	68,046		67,360
Agricultural & AG RE	45,520			50,121
Construction, land & development	32,046			26,016
Commercial RE	427,761			391,918
1-4 family mortgages	90,260			95,227
Consumer	3,162			2,905
Total Loans	$	666,795		633,547
Allowance for loan losses	(9,021		)	(8,591	)
Loans, net	$	657,774		624,956

Schedule of Loans by Internal Risk Rating

The following table presents the commercial loan portfolio by internal risk rating:

September 30, 2016
	Commercial								Commercial Real Estate
Internal Risk Rating	Closed-end		Lines of Credit		Agriculture & AG RE		Construction, Land & Development		Owner- Occupied		Non-Owner Occupied		Total
Pass	$	23,659	$	42,225	$	45,188	$	31,905	$	192,864	$	224,941	$	560,782
Special Mention	712		740		—		—		1,931		7,342		10,725
Substandard	165		545		332		141		251		432		1,866
Doubtful	—		—		—		—		—		—		—
Total	$	24,536	$	43,510	$	45,520	$	32,046	$	195,046	$	232,715	$	573,373

December 31, 2015
	Commercial								Commercial Real Estate
Internal Risk Rating	Closed-end		Lines of Credit		Agriculture & AG RE		Construction, Land & Development		Owner- Occupied		Non-Owner Occupied		Total
Pass	$	24,303	$	42,374	$	50,121	$	25,825	$	164,538	$	203,679	$	510,840
Special Mention	304		250		—		64		7,701		11,512		19,831
Substandard	129		—		—		127		412		4,076		4,744
Doubtful	—		—		—		—		—		—		—
Total	$	24,736	$	42,624	$	50,121	$	26,016	$	172,651	$	219,267	$	535,415

The following table presents the Retail Residential Loan Portfolio by Internal Risk Rating:

	Residential -- 1-4 family
	Senior Lien		Jr. Lien & Lines of Credit		Total
September 30, 2016
Unrated	$	46,719	$	38,144	$	84,863
Special mention	3,208		93		3,301
Substandard	1,334		762		2,096
Doubtful	—		—		—
Total	$	51,261	$	38,999	$	90,260

	Residential -- 1-4 family
	Senior Lien		Jr. Lien & Lines of Credit		Total
December 31, 2015
Unrated	$	48,319	$	41,380	$	89,699
Special mention	4,011		168		4,179
Substandard	1,036		313		1,349
Doubtful	—		—		—
Total	$	53,366	$	41,861	$	95,227

Analysis of Activity in Allowance for Loan Losses

An analysis of activity in the allowance for loan losses for the three months ended September 30, 2016 and 2015 follows:

	Commercial			Agriculture & AG RE		Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2016
Beginning Balance	$	1,185		$	103	$	452	$	5,243		$	1,933		$	9		$	8,925
Charge-offs	(20		)	—		—		—			(73		)	—			(93		)
Recoveries	91			—		4		24			69			1			189
Provision	12			5		152		(234		)	70			(5		)	—
Ending Balance	$	1,268		$	108	$	608	$	5,033		$	1,999		$	5		$	9,021

	Commercial			Agriculture & AG RE			Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2015
Beginning Balance	$	1,036		$	65		$	396	$	5,185		$	1,951		$	12		$	8,645
Charge-offs	—			—			—		(24		)	(325		)	(1		)	(350		)
Recoveries	54			2			16		9			24			3			108
Provision	(121		)	(1		)	66		35			25			(4		)	—
Ending Balance	$	969		$	66		$	478	$	5,205		$	1,675		$	10		$	8,403

An analysis of activity in the allowance for loan losses for the nine months ended September 30, 2016 and 2015 follows:

	Commercial			Agriculture & AG RE			Construction, Land & Development		Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2016
Beginning Balance	$	648		$	97		$	523	$	5,681		$	1,628		$	14		$	8,591
Charge-offs	(38		)	—			—		(520		)	(170		)	(3		)	(731		)
Recoveries	160			55			28		495			120			3			861
Provision	498			(44		)	57		(623		)	421			(9		)	300
Ending Balance	$	1,268		$	108		$	608	$	5,033		$	1,999		$	5		$	9,021

	Commercial			Agriculture & AG RE			Construction, Land & Development			Commercial RE			1-4 Family Residential			Consumer			Total
September 30, 2015
Beginning Balance	$	1,117		$	69		$	711		$	3,999		$	2,075		$	10		$	7,981
Charge-offs	(357		)	—			(3		)	(639		)	(455		)	(4		)	(1,458		)
Recoveries	144			2			43			1,616			45			30			1,880
Provision	65			(5		)	(273		)	229			10			(26		)	—
Ending Balance	$	969		$	66		$	478		$	5,205		$	1,675		$	10		$	8,403

The following is an analysis on the balance in the allowance for loan losses and the recorded investment in impaired loans by portfolio segment based on impairment method as of September 30, 2016 and December 31, 2015:

September 30, 2016	Commercial		Agriculture & AG RE		Construction, Land & Development		Commercial RE		1-4 Family Residential		Consumer		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	553	$	—	$	57	$	314	$	582	$	2	$	1,508
Loans collectively evaluated for impairment	715		108		551		4,719		1,417		3		7,513
Total allowance balance:	$	1,268	$	108	$	608	$	5,033	$	1,999	$	5	$	9,021
Loan balances:
Loans individually evaluated for impairment	$	711	$	341	$	141	$	686	$	2,097	$	2	$	3,978
Loans collectively evaluated for impairment	67,335		45,179		31,905		427,075		88,163		3,160		662,817
Total loans balance:	$	68,046	$	45,520	$	32,046	$	427,761	$	90,260	$	3,162	$	666,795

December 31, 2015	Commercial		Agriculture & AG RE		Construction, Land & Development		Commercial RE		1-4 Family Residential		Consumer		Total
Allowance for loan losses:
Loans individually evaluated for impairment	$	80	$	—	$	10	$	1,178	$	325	$	1	$	1,594
Loans collectively evaluated for impairment	568		97		513		4,503		1,303		13		6,997
Total allowance balance:	$	648	$	97	$	523	$	5,681	$	1,628	$	14	$	8,591
Loan balances:
Loans individually evaluated for impairment	$	129	$	—	$	127	$	4,488	$	1,348	$	1	$	6,093
Loans collectively evaluated for impairment	67,231		50,121		25,889		387,430		93,879		2,904		627,454
Total loans balance:	$	67,360	$	50,121	$	26,016	$	391,918	$	95,227	$	2,905	$	633,547

Summary of Impaired Loans

The following tables present data on impaired loans:

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Loans with no related allowance recorded:
Commercial
Closed-end	$	—	$	—	$	—	$	—	$	—	$	—
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	341		341		—		85		18		5
Construction, land & development	79		257		—		20		—		—
CRE - all other
Owner occupied	3		3		—		9		—		2
Non-owner occupied	—		—		—		—		—		—
1-4 family residential
Senior lien	252		252		—		218		—		—
Jr. lien & lines of credit	192		192		—		119		4		4
Consumer	—		—		—		—		—		—
Subtotal	867		1,045		—		451		22		11
Loans with an allowance recorded:
Commercial
Closed-end	$	164	$	164	$	102	$	165	$	2	$	2
Line of credit	547		547		451		286		20		19
Agricultural & AG RE	—		—		—		80		—		—
Construction, land & development	62		62		57		115		3		1
CRE - all other
Owner occupied	252		252		113		415		10		7
Non-owner occupied	431		431		201		2,129		—		—
1-4 family residential
Senior lien	1,082		1,100		284		1,079		15		14
Jr. lien & lines of credit	571		571		298		419		12		12
Consumer	2		2		2		2		—		—
Subtotal	3,111		3,129		1,508		4,690		62		55
Total	$	3,978	$	4,174	$	1,508	$	5,141	$	84	$	66

December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Loans with no related allowance recorded:
Commercial
Closed-end	$	2	$	2	$	—	$	15	$	1	$	1
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	—		—		—		—		—		—
Construction, land & development	—		—		—		299		—		—
CRE - all other
Owner occupied	6		6		—		78		—		—
Non-owner occupied	—		—		—		—		—		—
1-4 family residential
Senior lien	176		176		—		277		—		—
Jr. lien & lines of credit	71		71		—		88		3		3
Consumer	—		—		—		—		—		—
Subtotal	255		255		—		757		4		4
Loans with an allowance recorded:
Commercial
Closed-end	$	127	$	127	$	80	$	199	$	2	$	2
Line of credit	—		—		—		—		—		—
Agricultural & AG RE	—		—		—		—		—		—
Construction, land & development	127		419		10		120		—		—
CRE - all other
Owner occupied	406		541		100		586		11		9
Non-owner occupied	4,076		4,955		1,078		4,101		17		17
1-4 family residential
Senior lien	859		984		215		1,003		14		10
Jr. lien & lines of credit	242		242		110		230		5		5
Consumer	1		—		1		—		—		—
Subtotal	5,838		7,268		1,594		6,239		49		43
Total	$	6,093	$	7,523	$	1,594	$	6,996	$	53	$	47

Schedule of Activity Related to Loan Portfolio Aging

The following table represents information related to loan portfolio aging:

September 30, 2016	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days Past Due or Nonaccrual		Total Past Due		Current		Total Loans
Commercial
Closed-end	$	—	$	—	$	108	$	108	$	24,428	$	24,536
Line of credit	—		—		—		—		43,510		43,510
Agricultural & AG RE	331		—		—		331		45,189		45,520
Construction, land & development	—		—		79		79		31,967		32,046
CRE - all other
Owner occupied	173		—		20		193		194,853		195,046
Non-owner occupied	—		—		432		432		232,283		232,715
1-4 family residential
Senior lien	—		296		965		1,261		50,000		51,261
Jr. lien & lines of credit	214		35		718		967		38,032		38,999
Consumer	—		—		—		—		3,162		3,162
Total	$	718	$	331	$	2,322	$	3,371	$	663,424	$	666,795

December 31, 2015	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days Past Due or Nonaccrual		Total Past Due		Current		Total Loans
Commercial
Closed-end	$	58	$	—	$	130	$	188	$	24,548	$	24,736
Line of credit	—		—		—		—		42,624		42,624
Agricultural & AG RE	—		—		—		—		50,121		50,121
Construction, land & development	—		—		127		127		25,889		26,016
CRE - all other
Owner occupied	985		—		412		1,397		171,254		172,651
Non-owner occupied	—		—		4,076		4,076		215,191		219,267
1-4 family residential
Senior lien	1,481		21		994		2,496		50,870		53,366
Jr. lien & lines of credit	230		258		268		756		41,105		41,861
Consumer	1		1		—		2		2,903		2,905
Total	$	2,755	$	280	$	6,007	$	9,042	$	624,505	$	633,547

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes, by measurement hierarchy, the various assets and liabilities of the Company that are measured at fair value on a recurring basis:

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2016
U.S. government agencies	$	12,591	$	—	$	12,591	$	—
State and political subdivisions	13,127		—		8,109		5,018
U.S. government agency residential
mortgage-backed securities	139,354		—		139,354		—
Collateralized mortgage obligations:
Agency	15,610		—		15,610		—
Equities	2,964		—		2,964		—
Available-for-sale securities	$	183,646	$	—	$	178,628	$	5,018

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2015
U.S. government agencies	$	14,607	$	—	$	14,607	$	—
State and political subdivisions	10,181		—		5,160		5,021
U.S. government agency residential
mortgage-backed securities	126,029		—		126,029		—
Collateralized mortgage obligations:
Agency	17,833		—		17,833		—
Equities	2,790		—		2,790		—
Available-for-sale securities	$	171,440	$	—	$	166,419	$	5,021

Reconciliation of Assets Measured at Fair Value on a Recurring Basis

The following table reconciles the beginning and ending balances of the assets of the Company that are measured at fair value on a recurring basis using significant unobservable inputs.

	Securities Available for Sale
	2016
Beginning balance, January 1	$	5,021
Transfers into Level 3	—
Total gains or losses (realized/unrealized) included in earnings
Sales	—
Security impairment	—
Payment received	—
Other changes in fair value	(3		)
Included in other comprehensive income	—
Ending Balance, September 30	$	5,018

Summary of Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015:

September 30, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Line of credit	$	114			20% - 100% (78%)
CRE - all other
Owner occupied	$	139			10% - 55% (41%)
1-4 family residential
Senior lien	131				10% - 60% (54%)
OREO property
CRE - construction, land & development	2,765				5% - 70% (35%)
CRE - all other
Non-owner occupied	1,301				5% - 50% (18%)
1-4 family residential
Senior lien	167				6% - 55% (54%)

December 31, 2015	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
1-4 family residential
Senior lien	$	572			10% - 60% (17%)
OREO property
CRE - construction, land & development	1,140				5% - 70% (27%)
CRE - all other
Non-owner occupied	468				5% - 50% (16%)
1-4 family residential
Senior lien	131				6% - 55% (30%)

The following table summarizes, by measurement hierarchy, financial assets of the Company that are measured at fair value on a non-recurring basis.

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2016
Impaired loans
Commercial
Line of credit	114		—		—		114
CRE - all other
Owner occupied	$	139	$	—	$	—	$	139
1-4 family residential
Senior lien	131		—		—		131
Jr. lien & lines of credit	—		—		—		—
OREO property
CRE - construction, land & development	2,765		—		—		2,765
CRE - all other
Non-owner occupied	1,301		—		—		1,301
1-4 family residential
Senior lien	167		—		—		167

	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2015
Impaired loans
1-4 family residential
Senior lien	$	572	$	—	$	—	$	572
OREO property
CRE - construction, land & development	1,140		—		—		1,140
CRE - all other
Non-owner occupied	468		—		—		468
1-4 family residential
Senior lien	131		—		—		131

Schedule of Financial Instruments Estimated at Fair Value

The estimated fair values of the Company’s financial instruments are as follows:

			Fair Value measurements at September 30, 2016 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	44,745	$	44,745	$	—	$	—	$	44,745
Securities	183,646		—		178,628		5,018		183,646
Restricted securities	10,098		—		—		—		NA
Loans held for sale	—		—		—		—		—
Net loans	657,774		—		—		663,761		663,761
Accrued interest receivable	2,275		—		684		1,591		2,275
Financial liabilities
Deposits	$	760,951	$	—	$	761,198	$	—	$	761,198
Federal funds purchased and
securities sold under
agreements to repurchase	13,093		—		13,093		—		13,093
Federal Home Loan Bank advances	75,000		—		75,397		—		75,397
Subordinated debentures	20,620		—		—		16,511		16,511
Series B mandatory redeemable
preferred stock	209		—		211		—		211
Accrued interest payable	241		—		168		73		241

			Fair Value measurements at December 31, 2015 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	27,655	$	27,655	$	—	$	—	$	27,655
Securities	171,440		—		166,419		5,021		171,440
Restricted securities	9,116		—		—		—		NA
Loans held for sale	735		—		760		—		760
Net loans	624,956		—		—		629,017		629,017
Accrued interest receivable	3,012		—		402		2,610		3,012
Financial liabilities
Deposits	$	718,504	$	—	$	718,689	$	—	$	718,689
Federal funds purchased and
securities sold under
agreements to repurchase	18,730		—		18,730		—		18,730
Federal Home Loan Bank advances	76,000		—		76,271		—		76,271
Notes payable	—		—		—		—		—
Subordinated debentures	20,620		—		—		13,933		13,933
Series B mandatory redeemable
preferred stock	268		—		273		—		273
Accrued interest payable	235		—		169		66		235

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Borrowed Funds and Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Scheduled of Maturities of Advances from FHLB

The scheduled maturities of advances from the FHLB at September 30, 2016 and December 31, 2015 are as follows:

	September 30, 2016				December 31, 2015
Year	Average Interest Rate		Amount		Average Interest Rate		Amount
2016	—	%	—		0.70	%	60,000
2017	1.14		11,000		1.14		11,000
2018	0.48		49,000		3.64		5,000
2019	1.41		10,000		—		—
2020	—		—		—		—
Thereafter	2.46		5,000		—		—
	0.83		$	75,000	0.96		$	76,000

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Summary of Items Included in the Deferred Tax Inventory

Below is a summary of items included in the deferred tax inventory as of September 30, 2016 and December 31, 2015:

	September 30, 2016			December 31, 2015
Deferred tax assets
Allowance for loan losses	$	3,510		$	3,342
Deferred compensation, other	430			74
Stock based expense	117			87
Net operating loss carryforwards	30,924			34,180
Securities available-for-sale	—			405
Deferred tax credits	1,030			823
OREO valuation allowance	922			1,059
Depreciation	211			—
Other	205			255
Total deferred tax assets	37,349			40,225
Deferred tax liabilities
Depreciation	$	—		$	(58	)
Adjustments arising from acquisitions	(95		)	(146		)
Mortgage servicing rights	(799		)	(828		)
Securities available-for-sale	(21		)	—
Federal Home Loan Bank dividend received in stock	(450		)	(450		)
Deferred loan fees & costs	(388		)	(399		)
Prepaid expenses	(164		)	(164		)
Total deferred tax liabilities	(1,917		)	(2,045		)
Valuation allowance	—			—
Net deferred tax assets	$	35,432		$	38,180

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Share Based Compensation (Tables)

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of the Option Plan

A status summary of the option plan as of September 30, 2016 and changes during the period ended on that date are presented below:

	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2016	3,156		$	338.72
Granted	—		—
Exercised	—		—
Forfeited	(2,658	)	293.87
Outstanding at end of period	498		$	578.10	0.4 years	$	—
Vested or expected to vest	498		$	578.10	0.4 years	$	—
Options exercisable at period end	498		$	578.10	0.4 years	$	—

Schedule of Options Outstanding

Options outstanding at September 30, 2016 and year-end 2015 were as follows:

	Outstanding		Exercisable
Range of Exercise Prices	Number	Weighted Average Remaining Contractual Life	Number	Weighted Average Exercise Price
September 30, 2016
$390.01 - $578.10	498	0.4 years	498	$	578.10
December 31, 2015:
$157.20 - $390.00	2,160	0.2 years	2,160	$	228.33
390.01 - 578.10	996	0.9 years	996	578.10
	3,156	0.4 years	3,156	$	338.72

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

	Actual				To Be Adequately Capitalized		To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount	Ratio	Amount	Ratio
As of September 30, 2016
Total capital (to risk-weighted assets)
Centrue Financial	$	126,049	16.2	%	N/A	N/A	N/A	N/A
Centrue Bank	122,180		15.7		62,338	8.0	77,923	10.0
Common equity tier I (to risk-weighted assets)
Centrue Financial	$	106,820	13.7		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		35,065	4.5	50,650	6.5
Tier I capital (to risk-weighted assets)
Centrue Financial	$	117,028	15.0		N/A	N/A	N/A	N/A
Centrue Bank	113,159		14.5		46,754	6.0	62,338	8.0
Tier I leverage ratio (to average assets)
Centrue Financial	$	117,028	12.2		N/A	N/A	N/A	N/A
Centrue Bank	113,159		11.8		38,302	4.0	47,878	5.0

	Actual				To Be Adequately Capitalized				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount	Ratio
As of December 31, 2015
Total capital (to risk-weighted assets)
Centrue Financial	$	118,359	15.6	%	$	60,525	8.0	%	N/A	N/A
Centrue Bank	117,807		15.6		60,463		8.0		75,579	10.0
Common equity tier I (to risk-weighted assets)
Centrue Financial	$	107,678	14.2		$	34,045	4.5		N/A	N/A
Centrue Bank	109,216		14.5		34,011		4.5		49,126	6.5
Tier I capital (to risk-weighted assets)
Centrue Financial	$	109,768	14.5		$	45,394	6.0		N/A	N/A
Centrue Bank	109,216		14.5		45,347		6.0		60,463	8.0
Tier I leverage ratio (to average assets)
Centrue Financial	$	109,768	12.1		$	36,284	4.0		N/A	N/A
Centrue Bank	109,216		12.0		36,505		4.0		45,631	5.0

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Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions			9 Months Ended
	May 29, 2015	Mar. 31, 2015 USD ($) $ / shares shares	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Class of Stock [Line Items]
Stock split, conversion ratio	30
Issuance of common stock in private placement offering		$ 76,000
Consideration received on sale of stock, net of costs		68,200
Stock issuance costs		7,800
Payment of accrued but unpaid interest			$ 2,004	$ 6,710
Amount paid to redeem stock			$ 0	$ 19,000
Capital contribution		36,000
Series C Preferred Stock
Class of Stock [Line Items]
Value of stock redeemed		32,700
Amount paid to redeem stock		19,000
Subordinated debt
Class of Stock [Line Items]
Payment of accrued but unpaid interest		4,900
Secured debt
Class of Stock [Line Items]
Notes payable		10,300
Repayments of notes payable		$ 8,500
Private placement
Class of Stock [Line Items]
Common stock issued (in shares) | shares		6.3
Common stock, par value (in dollars per share) | $ / shares		$ 12.00

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Earnings Per Share (Details) $ / shares in Units, $ in Thousands			3 Months Ended		9 Months Ended		12 Months Ended
		May 29, 2015	Sep. 30, 2016 USD ($) $ / shares shares	Sep. 30, 2015 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) $ / shares shares	Sep. 30, 2015 USD ($) $ / shares shares	Dec. 31, 2015 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock split, conversion ratio		30
Anti-dilutive options excluded from computation of diluted earnings per share (in shares)					498	3,488
Number of shares considered dilutive			3,190	0	1,554	0
Basic Earnings Per Common Share
Net income | $			$ 1,055	$ 1,088	$ 4,101	$ 4,008
Preferred stock dividends | $			(82)	(395)	(247)	(1,401)
Discount on redemption of preferred stock | $			0	0	0	13,668
Net income for common stockholders | $			$ 973	$ 693	$ 3,854	$ 16,275
Weighted average common shares outstanding (in shares)			6,513,694	6,485,218	6,513,694	4,420,000
Basic earnings per common share (in dollars per share) | $ / shares	[1]		$ 0.15	$ 0.11	$ 0.59	$ 3.68
Diluted Earnings Per Common Share
Weighted average common shares outstanding (in shares)			6,513,694	6,485,218	6,513,694	4,420,000
Add: dilutive effect of restricted stock units (in shares)			3,190	0	1,554	0
Weighted average common and dilutive potential shares outstanding (in shares)			6,516,884	6,485,218	6,515,248	4,420,000
Diluted earnings per common share (in dollars per share) | $ / shares	[1]		$ 0.15	$ 0.11	$ 0.59	$ 3.68
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of units of restricted stock granted (in shares)					33,321		40,443
Number of shares considered dilutive			3,190		1,554
Diluted Earnings Per Common Share
Add: dilutive effect of restricted stock units (in shares)			3,190		1,554

[1] Share and per share amounts have been adjusted to reflect the Company's 1:30 reverse stock split effective May 29, 2015

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Securities - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Securities available-for-sale	$ 183,646	$ 171,440
Restricted securities	$ 10,098	$ 9,116

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Securities - Related Gross Unrealized Gains and Losses and Amortized Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 183,591	$ 172,480
Gross Unrealized Gains	594	194
Gross Unrealized Losses	(539)	(1,234)
Securities available-for-sale	183,646	171,440
U.S. government agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,680	14,629
Gross Unrealized Gains	0	13
Gross Unrealized Losses	(89)	(35)
Securities available-for-sale	12,591	14,607
States and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	13,062	10,190
Gross Unrealized Gains	76	16
Gross Unrealized Losses	(11)	(25)
Securities available-for-sale	13,127	10,181
U.S. government agency residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	139,627	127,039
Gross Unrealized Gains	165	7
Gross Unrealized Losses	(438)	(1,017)
Securities available-for-sale	139,354	126,029
Collateralized residential mortgage obligations: Agency
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,549	17,990
Gross Unrealized Gains	62	0
Gross Unrealized Losses	(1)	(157)
Securities available-for-sale	15,610	17,833
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,673	2,632
Gross Unrealized Gains	291	158
Gross Unrealized Losses	0	0
Securities available-for-sale	$ 2,964	$ 2,790

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Securities - Activity for Available-for-Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Proceeds from calls and maturities	$ 0	$ 2,000	$ 9,765	$ 3,530
Proceeds from sales of securities available for sale	16,528	34,959	36,198	49,584
Realized gains	79	272	159	397
Realized losses	0	(76)	(20)	(100)
Net impairment loss recognized in earnings	$ 0	$ 0	$ 0	$ 0

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Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Amortized Cost
Due in one year or less	$ 4,311
Due after one year through five years	6,033
Due after five years through ten years	15,398
Due after ten years	0
Available-for-sale securities, amortized cost basis	183,591	$ 172,480
Fair Value
Due in one year or less	4,321
Due after one year through five years	6,041
Due after five years through ten years	15,356
Due after ten years	0
Securities available-for-sale	183,646	171,440
U.S. government agency residential mortgage-backed securities
Amortized Cost
Debt maturities with a single maturity date	139,627
Available-for-sale securities, amortized cost basis	139,627	127,039
Fair Value
Debt maturities with a single maturity date	139,354
Securities available-for-sale	139,354	126,029
Collateralized residential mortgage obligations
Amortized Cost
Debt maturities with a single maturity date	15,549
Available-for-sale securities, amortized cost basis	15,549	17,990
Fair Value
Debt maturities with a single maturity date	15,610
Securities available-for-sale	15,610	17,833
Equity securities
Amortized Cost
Equity	2,673
Available-for-sale securities, amortized cost basis	2,673	2,632
Fair Value
Equity	2,964
Securities available-for-sale	$ 2,964	$ 2,790

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Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 85,751	$ 158,695
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(456)	(1,234)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	13,412	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(83)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	99,163	158,695
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(539)	(1,234)
U.S. government agencies
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	12,591	10,394
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(89)	(35)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	12,591	10,394
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(89)	(35)
States and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	5,586	6,057
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(11)	(25)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	5,586	6,057
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(11)	(25)
U.S. government agency residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	63,962	124,411
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(355)	(1,017)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	13,412	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(83)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	77,374	124,411
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(438)	(1,017)
Collateralized residential mortgage obligations: Agency
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	3,612	17,833
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1)	(157)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	3,612	17,833
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ (1)	$ (157)

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Loans - Classification of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 666,795		$ 633,547
Allowance for loan losses	(9,021)	$ (8,925)	(8,591)	$ (8,403)	$ (8,645)	$ (7,981)
Loans, net	657,774		624,956
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	68,046		67,360
Allowance for loan losses	(1,268)	(1,185)	(648)	(969)	(1,036)	(1,117)
Agriculture & AG RE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	45,520		50,121
Allowance for loan losses	(108)	(103)	(97)	(66)	(65)	(69)
Construction, Land & Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	32,046		26,016
Allowance for loan losses	(608)	(452)	(523)	(478)	(396)	(711)
Commercial RE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	427,761		391,918
Allowance for loan losses	(5,033)	(5,243)	(5,681)	(5,205)	(5,185)	(3,999)
1-4 Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	90,260		95,227
Allowance for loan losses	(1,999)	(1,933)	(1,628)	(1,675)	(1,951)	(2,075)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,162		2,905
Allowance for loan losses	$ (5)	$ (9)	$ (14)	$ (10)	$ (12)	$ (10)

XML

Loans - Internal Risk Rating (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 666,795	$ 633,547
Internal Noninvestment Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans	573,373	535,415
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	560,782	510,840
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,725	19,831
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,866	4,744
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	68,046	67,360
Agriculture & AG RE
Financing Receivable, Recorded Investment [Line Items]
Total Loans	45,520	50,121
Agriculture & AG RE | Internal Noninvestment Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans	45,520	50,121
Agriculture & AG RE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	45,188	50,121
Agriculture & AG RE | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Agriculture & AG RE | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	332	0
Agriculture & AG RE | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Construction, Land & Development
Financing Receivable, Recorded Investment [Line Items]
Total Loans	32,046	26,016
Construction, Land & Development | Internal Noninvestment Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans	32,046	26,016
Construction, Land & Development | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	31,905	25,825
Construction, Land & Development | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	64
Construction, Land & Development | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	141	127
Construction, Land & Development | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Commercial RE
Financing Receivable, Recorded Investment [Line Items]
Total Loans	427,761	391,918
1-4 Family Residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	90,260	95,227
1-4 Family Residential | Senior Lien
Financing Receivable, Recorded Investment [Line Items]
Total Loans	51,261	53,366
1-4 Family Residential | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment [Line Items]
Total Loans	38,999	41,861
1-4 Family Residential | Unrated
Financing Receivable, Recorded Investment [Line Items]
Total Loans	84,863	89,699
1-4 Family Residential | Unrated | Senior Lien
Financing Receivable, Recorded Investment [Line Items]
Total Loans	46,719	48,319
1-4 Family Residential | Unrated | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment [Line Items]
Total Loans	38,144	41,380
1-4 Family Residential | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,301	4,179
1-4 Family Residential | Special mention | Senior Lien
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,208	4,011
1-4 Family Residential | Special mention | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment [Line Items]
Total Loans	93	168
1-4 Family Residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,096	1,349
1-4 Family Residential | Substandard | Senior Lien
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,334	1,036
1-4 Family Residential | Substandard | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment [Line Items]
Total Loans	762	313
1-4 Family Residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
1-4 Family Residential | Doubtful | Senior Lien
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
1-4 Family Residential | Doubtful | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Closed-end | Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	24,536	24,736
Closed-end | Commercial | Internal Noninvestment Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans	24,536	24,736
Closed-end | Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	23,659	24,303
Closed-end | Commercial | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	712	304
Closed-end | Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	165	129
Closed-end | Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Line of credit | Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	43,510	42,624
Line of credit | Commercial | Internal Noninvestment Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans	43,510	42,624
Line of credit | Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	42,225	42,374
Line of credit | Commercial | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	740	250
Line of credit | Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	545	0
Line of credit | Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Owner occupied | Commercial RE
Financing Receivable, Recorded Investment [Line Items]
Total Loans	195,046	172,651
Owner occupied | Commercial RE | Internal Noninvestment Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans	195,046	172,651
Owner occupied | Commercial RE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	192,864	164,538
Owner occupied | Commercial RE | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,931	7,701
Owner occupied | Commercial RE | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	251	412
Owner occupied | Commercial RE | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0	0
Non-owner occupied | Commercial RE
Financing Receivable, Recorded Investment [Line Items]
Total Loans	232,715	219,267
Non-owner occupied | Commercial RE | Internal Noninvestment Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans	232,715	219,267
Non-owner occupied | Commercial RE | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	224,941	203,679
Non-owner occupied | Commercial RE | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	7,342	11,512
Non-owner occupied | Commercial RE | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	432	4,076
Non-owner occupied | Commercial RE | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 0	$ 0

XML

Loans - Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	$ 8,925	$ 8,645	$ 8,591	$ 7,981	$ 7,981
Charge-offs	(93)	(350)	(731)	(1,458)
Recoveries	189	108	861	1,880
Provision	0	0	300	0
Ending Balance	9,021	8,403	9,021	8,403	8,591
Commercial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	1,185	1,036	648	1,117	1,117
Charge-offs	(20)	0	(38)	(357)
Recoveries	91	54	160	144
Provision	12	(121)	498	65
Ending Balance	1,268	969	1,268	969	648
Agriculture & AG RE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	103	65	97	69	69
Charge-offs	0	0	0	0
Recoveries	0	2	55	2
Provision	5	(1)	(44)	(5)
Ending Balance	108	66	108	66	97
Construction, Land & Development
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	452	396	523	711	711
Charge-offs	0	0	0	(3)
Recoveries	4	16	28	43
Provision	152	66	57	(273)
Ending Balance	608	478	608	478	523
Commercial RE
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	5,243	5,185	5,681	3,999	3,999
Charge-offs	0	(24)	(520)	(639)
Recoveries	24	9	495	1,616
Provision	(234)	35	(623)	229
Ending Balance	5,033	5,205	5,033	5,205	5,681
1-4 Family Residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	1,933	1,951	1,628	2,075	2,075
Charge-offs	(73)	(325)	(170)	(455)
Recoveries	69	24	120	45
Provision	70	25	421	10
Ending Balance	1,999	1,675	1,999	1,675	1,628
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance	9	12	14	10	10
Charge-offs	0	(1)	(3)	(4)
Recoveries	1	3	3	30
Provision	(5)	(4)	(9)	(26)
Ending Balance	$ 5	$ 10	$ 5	$ 10	$ 14

XML

Loans - Evaluated for Impairment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Allowance for loan losses:
Loans individually evaluated for impairment	$ 1,508		$ 1,594
Loans collectively evaluated for impairment	7,513		6,997
Total allowance balance:	9,021	$ 8,925	8,591	$ 8,403	$ 8,645	$ 7,981
Loan balances:
Loans individually evaluated for impairment	3,978		6,093
Loans collectively evaluated for impairment	662,817		627,454
Total loans balance:	666,795		633,547
Commercial
Allowance for loan losses:
Loans individually evaluated for impairment	553		80
Loans collectively evaluated for impairment	715		568
Total allowance balance:	1,268	1,185	648	969	1,036	1,117
Loan balances:
Loans individually evaluated for impairment	711		129
Loans collectively evaluated for impairment	67,335		67,231
Total loans balance:	68,046		67,360
Agriculture & AG RE
Allowance for loan losses:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	108		97
Total allowance balance:	108	103	97	66	65	69
Loan balances:
Loans individually evaluated for impairment	341		0
Loans collectively evaluated for impairment	45,179		50,121
Total loans balance:	45,520		50,121
Construction, Land & Development
Allowance for loan losses:
Loans individually evaluated for impairment	57		10
Loans collectively evaluated for impairment	551		513
Total allowance balance:	608	452	523	478	396	711
Loan balances:
Loans individually evaluated for impairment	141		127
Loans collectively evaluated for impairment	31,905		25,889
Total loans balance:	32,046		26,016
Commercial RE
Allowance for loan losses:
Loans individually evaluated for impairment	314		1,178
Loans collectively evaluated for impairment	4,719		4,503
Total allowance balance:	5,033	5,243	5,681	5,205	5,185	3,999
Loan balances:
Loans individually evaluated for impairment	686		4,488
Loans collectively evaluated for impairment	427,075		387,430
Total loans balance:	427,761		391,918
1-4 Family Residential
Allowance for loan losses:
Loans individually evaluated for impairment	582		325
Loans collectively evaluated for impairment	1,417		1,303
Total allowance balance:	1,999	1,933	1,628	1,675	1,951	2,075
Loan balances:
Loans individually evaluated for impairment	2,097		1,348
Loans collectively evaluated for impairment	88,163		93,879
Total loans balance:	90,260		95,227
Consumer
Allowance for loan losses:
Loans individually evaluated for impairment	2		1
Loans collectively evaluated for impairment	3		13
Total allowance balance:	5	$ 9	14	$ 10	$ 12	$ 10
Loan balances:
Loans individually evaluated for impairment	2		1
Loans collectively evaluated for impairment	3,160		2,904
Total loans balance:	$ 3,162		$ 2,905

XML

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Loans with no related allowance recorded:
Recorded Investment	$ 867	$ 255
Unpaid Principal Balance	1,045	255
Average Recorded Investment	451	757
Interest Income Recognized	22	4
Cash Basis Interest Recognized	11	4
Loans with an allowance recorded:
Recorded Investment	3,111	5,838
Unpaid Principal Balance	3,129	7,268
Related Allowance	1,508	1,594
Average Recorded Investment	4,690	6,239
Interest Income Recognized	62	49
Cash Basis Interest Recognized	55	43
Recorded Investment, Total	3,978	6,093
Unpaid Principal Balance, Total	4,174	7,523
Average Recorded Investment, Total	5,141	6,996
Interest Income Recognized, Total	84	53
Cash Basis Interest Recognized, Total	66	47
Commercial | Closed-end
Loans with no related allowance recorded:
Recorded Investment	0	2
Unpaid Principal Balance	0	2
Average Recorded Investment	0	15
Interest Income Recognized	0	1
Cash Basis Interest Recognized	0	1
Loans with an allowance recorded:
Recorded Investment	164	127
Unpaid Principal Balance	164	127
Related Allowance	102	80
Average Recorded Investment	165	199
Interest Income Recognized	2	2
Cash Basis Interest Recognized	2	2
Commercial | Line of credit
Loans with no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Cash Basis Interest Recognized	0	0
Loans with an allowance recorded:
Recorded Investment	547	0
Unpaid Principal Balance	547	0
Related Allowance	451	0
Average Recorded Investment	286	0
Interest Income Recognized	20	0
Cash Basis Interest Recognized	19	0
Agriculture & AG RE
Loans with no related allowance recorded:
Recorded Investment	341	0
Unpaid Principal Balance	341	0
Average Recorded Investment	85	0
Interest Income Recognized	18	0
Cash Basis Interest Recognized	5	0
Loans with an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	80	0
Interest Income Recognized	0	0
Cash Basis Interest Recognized	0	0
Construction, Land & Development
Loans with no related allowance recorded:
Recorded Investment	79	0
Unpaid Principal Balance	257	0
Average Recorded Investment	20	299
Interest Income Recognized	0	0
Cash Basis Interest Recognized	0	0
Loans with an allowance recorded:
Recorded Investment	62	127
Unpaid Principal Balance	62	419
Related Allowance	57	10
Average Recorded Investment	115	120
Interest Income Recognized	3	0
Cash Basis Interest Recognized	1	0
Commercial RE | Owner occupied
Loans with no related allowance recorded:
Recorded Investment	3	6
Unpaid Principal Balance	3	6
Average Recorded Investment	9	78
Interest Income Recognized	0	0
Cash Basis Interest Recognized	2	0
Loans with an allowance recorded:
Recorded Investment	252	406
Unpaid Principal Balance	252	541
Related Allowance	113	100
Average Recorded Investment	415	586
Interest Income Recognized	10	11
Cash Basis Interest Recognized	7	9
Commercial RE | Non-owner occupied
Loans with no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Cash Basis Interest Recognized	0	0
Loans with an allowance recorded:
Recorded Investment	431	4,076
Unpaid Principal Balance	431	4,955
Related Allowance	201	1,078
Average Recorded Investment	2,129	4,101
Interest Income Recognized	0	17
Cash Basis Interest Recognized	0	17
1-4 Family Residential | Senior Lien
Loans with no related allowance recorded:
Recorded Investment	252	176
Unpaid Principal Balance	252	176
Average Recorded Investment	218	277
Interest Income Recognized	0	0
Cash Basis Interest Recognized	0	0
Loans with an allowance recorded:
Recorded Investment	1,082	859
Unpaid Principal Balance	1,100	984
Related Allowance	284	215
Average Recorded Investment	1,079	1,003
Interest Income Recognized	15	14
Cash Basis Interest Recognized	14	10
1-4 Family Residential | Jr. Lien & Lines of Credit
Loans with no related allowance recorded:
Recorded Investment	192	71
Unpaid Principal Balance	192	71
Average Recorded Investment	119	88
Interest Income Recognized	4	3
Cash Basis Interest Recognized	4	3
Loans with an allowance recorded:
Recorded Investment	571	242
Unpaid Principal Balance	571	242
Related Allowance	298	110
Average Recorded Investment	419	230
Interest Income Recognized	12	5
Cash Basis Interest Recognized	12	5
Consumer
Loans with no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Cash Basis Interest Recognized	0	0
Loans with an allowance recorded:
Recorded Investment	2	1
Unpaid Principal Balance	2	0
Related Allowance	2	1
Average Recorded Investment	2	0
Interest Income Recognized	0	0
Cash Basis Interest Recognized	$ 0	$ 0

XML

Loans - Aging Activity (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 3,371	$ 9,042
Current	663,424	624,505
Total loans balance:	666,795	633,547
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	718	2,755
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	331	280
90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,322	6,007
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance:	68,046	67,360
Commercial | Closed-end
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	108	188
Current	24,428	24,548
Total loans balance:	24,536	24,736
Commercial | Closed-end | 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	58
Commercial | Closed-end | 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial | Closed-end | 90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	108	130
Commercial | Line of credit
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Current	43,510	42,624
Total loans balance:	43,510	42,624
Commercial | Line of credit | 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial | Line of credit | 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial | Line of credit | 90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Agriculture & AG RE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	331	0
Current	45,189	50,121
Total loans balance:	45,520	50,121
Agriculture & AG RE | 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	331	0
Agriculture & AG RE | 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Agriculture & AG RE | 90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction, Land & Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	79	127
Current	31,967	25,889
Total loans balance:	32,046	26,016
Construction, Land & Development | 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction, Land & Development | 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction, Land & Development | 90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	79	127
Commercial RE
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance:	427,761	391,918
Commercial RE | Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	193	1,397
Current	194,853	171,254
Total loans balance:	195,046	172,651
Commercial RE | Owner occupied | 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	173	985
Commercial RE | Owner occupied | 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial RE | Owner occupied | 90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	20	412
Commercial RE | Non-owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	432	4,076
Current	232,283	215,191
Total loans balance:	232,715	219,267
Commercial RE | Non-owner occupied | 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial RE | Non-owner occupied | 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial RE | Non-owner occupied | 90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	432	4,076
1-4 Family Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance:	90,260	95,227
1-4 Family Residential | Senior Lien
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,261	2,496
Current	50,000	50,870
Total loans balance:	51,261	53,366
1-4 Family Residential | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	967	756
Current	38,032	41,105
Total loans balance:	38,999	41,861
1-4 Family Residential | 30 - 59 Days Past Due | Senior Lien
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	1,481
1-4 Family Residential | 30 - 59 Days Past Due | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	214	230
1-4 Family Residential | 60 - 89 Days Past Due | Senior Lien
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	296	21
1-4 Family Residential | 60 - 89 Days Past Due | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	35	258
1-4 Family Residential | 90 Days Past Due or Nonaccrual | Senior Lien
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	965	994
1-4 Family Residential | 90 Days Past Due or Nonaccrual | Jr. Lien & Lines of Credit
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	718	268
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	2
Current	3,162	2,903
Total loans balance:	3,162	2,905
Consumer | 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	1
Consumer | 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	1
Consumer | 90 Days Past Due or Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 0	$ 0

XML

Loans - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) contract	Sep. 30, 2015 contract	Sep. 30, 2016 USD ($) contract	Sep. 30, 2015 USD ($) contract	Dec. 31, 2015 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings (TDRs)	$ 230		$ 230		$ 240
TDR loans on nonaccrual status	$ 230		$ 230		240
Number of loans modified as troubled debt restructurings (in contracts) | contract	0	0	0
Loans classified as impaired	$ 3,978		$ 3,978		6,093
Performing financial instruments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans classified as impaired	$ 1,700		$ 1,700		$ 100
1-4 Family Residential | Senior Lien
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans modified as troubled debt restructurings (in contracts) | contract				2
Pre-modification recorded investment				$ 100
Post-modification recorded investment				$ 100
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modifications, reduction of stated interest rate, period			6 months
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modifications, reduction of stated interest rate, period			16 months

XML

Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 183,646	$ 171,440
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	183,646	171,440
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	178,628	166,419
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	5,018	5,021
U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	12,591	14,607
U.S. government agencies | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	12,591	14,607
U.S. government agencies | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	12,591	14,607
States and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	13,127	10,181
States and political subdivisions | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	13,127	10,181
States and political subdivisions | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	8,109	5,160
States and political subdivisions | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	5,018	5,021
U.S. government agency residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	139,354	126,029
U.S. government agency residential mortgage-backed securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	139,354	126,029
U.S. government agency residential mortgage-backed securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	139,354	126,029
Collateralized residential mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	15,610	17,833
Collateralized residential mortgage obligations | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	15,610	17,833
Collateralized residential mortgage obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	15,610	17,833
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	2,964	2,790
Equity securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	2,964	2,790
Equity securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 2,964	$ 2,790

XML

Fair Value - Unobservable Input Reconciliation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 5,021
Total gains or losses (realized/unrealized) included in earnings
Other changes in fair value	(3)
Ending balance	$ 5,018

XML

Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 3,978	$ 6,093
Other real estate owned, net	5,541	8,401
Fair Value, Measurements, Nonrecurring | Commercial | Line of credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	114
Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	131	572
Other real estate owned, net	167	131
Fair Value, Measurements, Nonrecurring | Construction, Land & Development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	2,765	1,140
Fair Value, Measurements, Nonrecurring | Commercial RE | Owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	139
Fair Value, Measurements, Nonrecurring | Commercial RE | Jr. Lien & Lines of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0
Fair Value, Measurements, Nonrecurring | Commercial RE | Non-owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	1,301	468
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial | Line of credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	114
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | 1-4 Family Residential | Senior Lien
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	131	572
Other real estate owned, net	167	131
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Construction, Land & Development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	2,765	1,140
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial RE | Owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	139
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial RE | Jr. Lien & Lines of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial RE | Non-owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	$ 1,301	$ 468

XML

Fair Value - Level 3 Measurements for Instruments Measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 3,978	$ 6,093
Other real estate owned, net	5,541	8,401
Fair Value, Measurements, Nonrecurring | Commercial | Line of credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	114
Fair Value, Measurements, Nonrecurring | Commercial RE | Owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	139
Fair Value, Measurements, Nonrecurring | Commercial RE | Non-owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	1,301	468
Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	131	572
Other real estate owned, net	167	131
Fair Value, Measurements, Nonrecurring | Construction, Land & Development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	2,765	1,140
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial | Line of credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 114
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial | Line of credit | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	20.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial | Line of credit | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	100.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial | Line of credit | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	78.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 139
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Owner occupied | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	10.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Owner occupied | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	55.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Owner occupied | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	41.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Non-owner occupied
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	$ 1,301	$ 468
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Non-owner occupied | OREO property | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	5.00%	5.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Non-owner occupied | OREO property | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	50.00%	50.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial RE | Non-owner occupied | OREO property | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	18.00%	16.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 131	$ 572
Other real estate owned, net	$ 167	$ 131
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	10.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	60.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	54.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | Loans receivable | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)		10.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | Loans receivable | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)		60.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | Loans receivable | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)		17.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | OREO property | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	6.00%	6.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | OREO property | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	55.00%	55.00%
Level 3 | Fair Value, Measurements, Nonrecurring | 1-4 Family Residential | Senior Lien | OREO property | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	54.00%	30.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Construction, Land & Development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	$ 2,765	$ 1,140
Level 3 | Fair Value, Measurements, Nonrecurring | Construction, Land & Development | OREO property | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	5.00%	5.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Construction, Land & Development | OREO property | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	70.00%	70.00%
Level 3 | Fair Value, Measurements, Nonrecurring | Construction, Land & Development | OREO property | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	35.00%	27.00%

XML

Fair Value - Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Carrying Value
Financial assets
Cash and cash equivalents	$ 44,745	$ 27,655
Securities	183,646	171,440
Restricted securities	10,098	9,116
Loans held for sale	0	735
Net loans	657,774	624,956
Accrued interest receivable	2,275	3,012
Financial liabilities
Deposits	760,951	718,504
Federal funds purchased and securities sold under agreements to repurchase	13,093	18,730
Federal Home Loan Bank advances	75,000	76,000
Notes payable		0
Subordinated debentures	20,620	20,620
Series B mandatorily redeemable preferred stock	209	268
Accrued interest payable	241	235
Fair value measurements
Financial assets
Cash and cash equivalents	44,745	27,655
Securities	183,646	171,440
Loans held for sale	0	760
Net loans	663,761	629,017
Accrued interest receivable	2,275	3,012
Financial liabilities
Deposits	761,198	718,689
Federal funds purchased and securities sold under agreements to repurchase	13,093	18,730
Federal Home Loan Bank advances	75,397	76,271
Notes payable		0
Subordinated debentures	16,511	13,933
Series B mandatorily redeemable preferred stock	211	273
Accrued interest payable	241	235
Fair value measurements | Level 1
Financial assets
Cash and cash equivalents	44,745	27,655
Securities	0	0
Restricted securities	0	0
Loans held for sale	0	0
Net loans	0	0
Accrued interest receivable	0	0
Financial liabilities
Deposits	0	0
Federal funds purchased and securities sold under agreements to repurchase	0	0
Federal Home Loan Bank advances	0	0
Notes payable		0
Subordinated debentures	0	0
Series B mandatorily redeemable preferred stock	0	0
Accrued interest payable	0	0
Fair value measurements | Level 2
Financial assets
Cash and cash equivalents	0	0
Securities	178,628	166,419
Restricted securities	0	0
Loans held for sale	0	760
Net loans	0	0
Accrued interest receivable	684	402
Financial liabilities
Deposits	761,198	718,689
Federal funds purchased and securities sold under agreements to repurchase	13,093	18,730
Federal Home Loan Bank advances	75,397	76,271
Notes payable		0
Subordinated debentures	0	0
Series B mandatorily redeemable preferred stock	211	273
Accrued interest payable	168	169
Fair value measurements | Level 3
Financial assets
Cash and cash equivalents	0	0
Securities	5,018	5,021
Restricted securities	0	0
Loans held for sale	0	0
Net loans	663,761	629,017
Accrued interest receivable	1,591	2,610
Financial liabilities
Deposits	0	0
Federal funds purchased and securities sold under agreements to repurchase	0	0
Federal Home Loan Bank advances	0	0
Notes payable		0
Subordinated debentures	16,511	13,933
Series B mandatorily redeemable preferred stock	0	0
Accrued interest payable	$ 73	$ 66

XML

Fair Value - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Local school district bonds	$ 5,018		$ 5,018		$ 5,021
Impaired loans	3,978		3,978		6,093
Outstanding balance of impaired loans	4,174		4,174		7,523
Related Allowance	1,508		1,508		1,594
Provision	0	$ 0	300	$ 0
Other real estate owned, net	5,541		5,541		8,401
Fair value measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	44,745		44,745		27,655
Fair value measurements | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	44,745		44,745		27,655
Impaired financing receivable, recent appraisal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	400		400		600
Outstanding balance of impaired loans	1,000		1,000		900
Related Allowance	600		600		300
Provision			600		100
Other real estate, recent appraisal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned, net	2,900		2,900		1,700
Real estate acquired, outstanding balance of related loan	3,600		3,600		$ 2,900
Valuation allowance of real estate owned	700		700
Local school district bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Local school district bonds	$ 5,000		$ 5,000

XML

Borrowed Funds and Debt Obligations - Scheduled Maturities of Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Average Interest Rate
2016	0.00%	0.70%
2017	1.14%	1.14%
2018	0.48%	3.64%
2019	1.41%	0.00%
Thereafter	2.46%	0.00%
Federal Home Loan Bank, Advances, Average Interest Rate	0.83%	0.96%
Amount
2016	$ 0	$ 60,000
2017	11,000	11,000
2018	49,000	5,000
2019	10,000	0
Thereafter	5,000	0
Advances from Federal Home Loan Banks	$ 75,000	$ 76,000

XML

Borrowed Funds and Debt Obligations - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 31, 2015 USD ($)	Sep. 30, 2016 USD ($) loan	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) loan	Sep. 30, 2015 USD ($)	Dec. 31, 2015 loan
Debt Instrument [Line Items]
Federal Home Loan Bank, number of variable rate advances (in loans) | loan		2		2		0
Issuance of common stock in private placement offering	$ 76,000
Gain on extinguishment of debt	$ 1,800	$ 0	$ 0	$ 0	$ 1,750
FHLB advance number one
Debt Instrument [Line Items]
Variable rate		0.25%		0.25%
FHLB advance number two
Debt Instrument [Line Items]
Variable rate		0.25%		0.25%
Minimum
Debt Instrument [Line Items]
Fixed interest rate of Federal Home Loan Bank advances		1.06%		1.06%		0.21%
Maximum
Debt Instrument [Line Items]
Fixed interest rate of Federal Home Loan Bank advances		2.46%		2.46%		3.64%

XML

Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Deferred tax assets
Allowance for loan losses	$ 3,510	$ 3,342
Deferred compensation, other	430	74
Stock based expense	117	87
Net operating loss carryforwards	30,924	34,180
Securities available-for-sale	0	405
Deferred tax credits	1,030	823
OREO valuation allowance	922	1,059
Depreciation	211	0
Other	205	255
Total deferred tax assets	37,349	40,225
Deferred tax liabilities
Depreciation	0	(58)
Adjustments arising from acquisitions	(95)	(146)
Mortgage servicing rights	(799)	(828)
Securities available-for-sale	(21)	0
Federal Home Loan Bank dividend received in stock	(450)	(450)
Deferred loan fees & costs	(388)	(399)
Prepaid expenses	(164)	(164)
Total deferred tax liabilities	(1,917)	(2,045)
Valuation allowance	0	0
Net deferred tax assets	$ 35,432	$ 38,180

XML

Share Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	May 31, 2015	Apr. 24, 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 500
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units of restricted stock granted (in shares)	33,321	40,443
Grant date fair value (in dollars per share)	$ 16.72
Number of restricted stock units vested (in shares)	0
Compensation cost charged against income	$ 80	$ 500
2003 Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved and available for issuance (in shares)				19,000
2003 Option Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise period	7 years
2003 Option Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise period	10 years
2015 Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)			430,000
Number of shares available to grant (in shares)	356,236

XML

Share Based Compensation - Summary of Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Shares
Outstanding at beginning of the period (in shares)	3,156
Granted (in shares)	0
Exercised (in shares)	0
Forfeited (in shares)	(2,658)
Outstanding at end of period (in shares)	498
Vested or expected to vest (in shares)	498
Options exercisable at period end (in shares)	498
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 578.10	$ 338.72
Granted (in dollars per share)	0.00
Exercised (in dollars per share)	0.00
Forfeited (in dollars per share)	293.87
Outstanding at end of period (in dollars per share)	578.10	$ 338.72
Vested or expected to vest (in dollars per share)	578.10
Options exercisable at period end (in dollars per share)	$ 578.10
Weighted-Average Remaining Contractual Life
Outstanding at end of period	4 months 24 days
Vested or expected to vest	4 months 24 days
Options exercisable at period end	4 months 24 days

XML

Share Based Compensation - Range of Exercise Prices (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Outstanding
Number (in shares)		3,156
Weighted Average Remaining Contractual Life		4 months 24 days
Exercisable
Number (in shares)		3,156
Weighted Average Exercise Price (in dollars per share)		$ 338.72
$157.20 - $390.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit (in dollars per share)		157.20
Range of Exercise Prices, Upper Range Limit (in dollars per share)		$ 390.00
Outstanding
Number (in shares)		2,160
Weighted Average Remaining Contractual Life		2 months 24 days
Exercisable
Number (in shares)		2,160
Weighted Average Exercise Price (in dollars per share)		$ 228.33
$390.01 - $578.10
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit (in dollars per share)	$ 390.01	390.01
Range of Exercise Prices, Upper Range Limit (in dollars per share)	$ 578.10	$ 578.10
Outstanding
Number (in shares)	498	996
Weighted Average Remaining Contractual Life	4 months 24 days	10 months 24 days
Exercisable
Number (in shares)	498	996
Weighted Average Exercise Price (in dollars per share)	$ 578.10	$ 578.10

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Regulatory Matters (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Centrue Financial
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), actual amount	$ 126,049	$ 118,359
Total capital (to risk-weighted assets), actual ratio	16.20%	15.60%
Total capital (to risk-weighted assets), to be adequately capitalized, amount		$ 60,525
Total capital (to risk-weighted assets), to be adequately capitalized, ratio		8.00%
Common equity tier I (to risk-weighted assets), actual amount	$ 106,820	$ 107,678
Common equity tier I (to risk-weighted assets), actual ratio	13.70%	14.20%
Common equity tier I (to risk-weighted assets), to be adequately capitalized, amount		$ 34,045
Common equity tier I (to risk-weighted assets), to be adequately capitalized, ratio		4.50%
Tier I capital (to risk-weighted assets), actual amount	$ 117,028	$ 109,768
Tier I capital (to risk-weighted assets), actual ratio	15.00%	14.50%
Tier I capital (to risk-weighted assets), to be adequately capitalized, amount		$ 45,394
Tier I capital (to risk-weighted assets), to be adequately capitalized, ratio		6.00%
Tier I leverage ratio (to average assets), actual amount	$ 117,028	$ 109,768
Tier I leverage ratio (to average assets), actual ratio	12.20%	12.10%
Tier I leverage ratio (to average assets), to be adequately capitalized, amount		$ 36,284
Tier I leverage ratio (to average assets), to be adequately capitalized, ratio		4.00%
Centrue Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk-weighted assets), actual amount	$ 122,180	$ 117,807
Total capital (to risk-weighted assets), actual ratio	15.70%	15.60%
Total capital (to risk-weighted assets), to be adequately capitalized, amount	$ 62,338	$ 60,463
Total capital (to risk-weighted assets), to be adequately capitalized, ratio	8.00%	8.00%
Total capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions, amount	$ 77,923	$ 75,579
Total capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions, ratio	10.00%	10.00%
Common equity tier I (to risk-weighted assets), actual amount	$ 113,159	$ 109,216
Common equity tier I (to risk-weighted assets), actual ratio	14.50%	14.50%
Common equity tier I (to risk-weighted assets), to be adequately capitalized, amount	$ 35,065	$ 34,011
Common equity tier I (to risk-weighted assets), to be adequately capitalized, ratio	4.50%	4.50%
Common equity tier I (to risk-weighted assets), to be well capitalized under prompt corrective action provisions, amount	$ 50,650	$ 49,126
Common equity tier I (to risk-weighted assets), to be well capitalized under prompt corrective action provisions, ratio	6.50%	6.50%
Tier I capital (to risk-weighted assets), actual amount	$ 113,159	$ 109,216
Tier I capital (to risk-weighted assets), actual ratio	14.50%	14.50%
Tier I capital (to risk-weighted assets), to be adequately capitalized, amount	$ 46,754	$ 45,347
Tier I capital (to risk-weighted assets), to be adequately capitalized, ratio	6.00%	6.00%
Tier I capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions, amount	$ 62,338	$ 60,463
Tier I capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions, ratio	8.00%	8.00%
Tier I leverage ratio (to average assets), actual amount	$ 113,159	$ 109,216
Tier I leverage ratio (to average assets), actual ratio	11.80%	12.00%
Tier I leverage ratio (to average assets), to be adequately capitalized, amount	$ 38,302	$ 36,505
Tier I leverage ratio (to average assets), to be adequately capitalized, ratio	4.00%	4.00%
Tier I leverage ratio (to average assets), to be well capitalized under prompt corrective action provisions, amount	$ 47,878	$ 45,631
Tier I leverage ratio (to average assets), to be well capitalized under prompt corrective action provisions, ratio	5.00%	5.00%

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Business Acquisitions and Divestitures (Details) - Fairview Heights, Aviston and St. Rose, Illinois $ in Millions	Jun. 17, 2016 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Deposits	$ 51.7
Loans	13.1
Fixed assets	5.1
Net gain	$ 1.1

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Subsequent Events (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	Oct. 27, 2016	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Subsequent Event [Line Items]
Trust preferred issuance			$ 209		$ 209		$ 268
Gain on extinguishment of debt		$ 1,800	$ 0	$ 0	$ 0	$ 1,750
Subsequent event | Trust preferred securities
Subsequent Event [Line Items]
Trust preferred issuance	$ 10,300
Settlement amount for trust preferred issuance	9,300
Gain on extinguishment of debt	$ 1,000