FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2014

FAIR VALUE

Schedule of assets measured at fair value on a recurring basis

(In thousands)

	Fair Value Measurements at December 31, 2014 Using:
			Quoted Prices
			In Active
			Markets for		Significant Other		Significant
			Identical		Observable		Unobservable
	Carrying		Assets		Inputs		Inputs
Description	Value		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies	$	60,586	$	—	$	60,586	$	—
States and municipals	89,281		—		89,281		—
Mortgage-backed - residential	96,698		—		96,698		—
Equity securities	296		296		—		—
Trading Assets	5,370		5,370		—
Total	$	252,231	$	5,666	$	246,565	$	—

(In thousands)

	Fair Value Measurements at December 31, 2013 Using:
			Quoted Prices
			In Active
			Markets for		Significant Other		Significant
			Identical		Observable		Unobservable
	Carrying		Assets		Inputs		Inputs
Description	Value		(Level 1)		(Level 2)		(Level 3)
U.S. government agencies	$	69,286	$	—	$	69,286	$	—
States and municipals	90,183		—		90,183		—
Mortgage-backed - residential	70,638		—		70,638		—
Equity securities	289		289		—		—
Total	$	230,396	$	289	$	230,107	$	—

Schedule of assets measured at fair value on a non-recurring basis

(In thousands)

	Fair Value Measurements at December 31, 2014 Using:
		Quoted Prices
		In Active
		Markets for	Significant Other	Significant
		Identical	Observable	Unobservable
	Carrying	Assets	Inputs	Inputs
Description	Value	(Level 1)	(Level 2)	(Level 3)
Impaired loans:
Real Estate Mortgage:
Multi-family residential	169	—	—	169
Non-farm & non-residential	366	—	—	366
Agricultural	3,729	—	—	3,729
Other real estate owned, net:
Residential	1,670	—	—	1,670
Loan servicing rights	516	—	—	516

(In thousands)

	Fair Value Measurements at December 31, 2013 Using:
		Quoted Prices
		In Active
		Markets for	Significant Other	Significant
		Identical	Observable	Unobservable
	Carrying	Assets	Inputs	Inputs
Description	Value	(Level 1)	(Level 2)	(Level 3)
Impaired loans:
Real Estate Mortgage:
1-4 family residential	1,420	—	—	1,420
Multi-family residential	199	—	—	199
Non-farm & non-residential	36	—	—	36
Agricultural	275	—	—	275
Other real estate owned, net:
Residential	1,361	—	—	1,361
Loan servicing rights	201	—	—	201

Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis

December 31, 2014

				Range
	Fair	Valuation	Unobservable	(Weighted
(In thousands)	Value	Technique(s)	Input(s)	Average)
Impaired loans
Real estate mortgage:
Multi-family residential	169	sales comparison	adjustment for differences between the comparable sales	10%-10% (10%)
Non-farm & non-residential	366	sales comparison	adjustment for differences between the comparable sales	0%-0% (0%)
Agricultural	3,729	sales comparison	adjustment for differences between the comparable sales	5%-53% (43%)
Other real estate owned:
Residential	1,670	sales comparison	adjustment for differences between the comparable sales	0%-48% (11%)
		income approach	capitalization rate	8%-10% (9%)
Loan Servicing Rights	516	discounted cash flow	constant prepayment rates	8%-35% (11%)

December 31, 2013

				Range
	Fair	Valuation	Unobservable	(Weighted
(In thousands)	Value	Technique(s)	Input(s)	Average)
Impaired loans
Real estate mortgage:
1-4 family residential	1,420	sales comparison	adjustment for differences between the comparable sales	0%-99% (14%)
Multi-family residential	199	sales comparison	adjustment for differences between the comparable sales	12%-32% (22%)
Non-farm & non-residential	36	sales comparison	adjustment for differences between the comparable sales	0%-61% (31%)
Agricultural	275	sales comparison	adjustment for differences between the comparable sales	5%-44% (20%)
Other real estate owned:
Residential	1,361	sales comparison	adjustment for differences between the comparable sales	0%-33% (4%)
		income approach	capitalization rate	8%-8% (8%)
Loan Servicing Rights	201	discounted cash flow	constant prepayment rates	7%-23% (10%)

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	17,169	$	17,169	$	—	$	—	$	17,169
Interest bearing deposits	1,280		1,280		—		—		1,280
Securities	246,861		296		246,565		—		246,861
Trading Assets	5,370		5,370		—		—		5,370
Mortgage loans held for sale	776		—		782		—		782
Loans, net	532,293		—		—		535,213		535,213
FHLB Stock	5,981		—		—		—		N/A
Interest receivable	3,299		—		1,274		2,025		3,299
Financial liabilities
Deposits	$	654,869	$	470,912	$	185,429	$	—	$	656,341
Securities sold under agreements to repurchase and other borrowings	12,457		—		12,620		—		12,620
FHLB advances	93,785		—		88,373		—		88,373
Subordinated Debentures	7,217		—		—		7,209		7,209
Interest payable	642		—		633		9		642

December 31, 2013:

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	22,860	$	22,860	$	—	$	—	$	22,860
Interest bearing deposits	300		300		—		—		—
Securities	230,396		289		230,107		—		230,396
Mortgage loans held for sale	223		—		229		—		229
Loans, net	463,214		—		—		459,796		459,796
FHLB Stock	6,731		—		—		—		N/A
Interest receivable	3,618		—		1,315		2,303		3,618
Financial liabilities
Deposits	$	617,400	$	428,239	$	191,523	$	—	$	619,762
Securities sold under agreements to repurchase and other borrowings	12,867		—		13,013		—		13,013
FHLB advances	57,847		—		52,220		—		52,220
Subordinated Debentures	7,217		—		—		7,217		7,217
Interest payable	736		—		727		9		736