FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2016

FAIR VALUE MEASUREMENTS

Schedule of assets measured at fair value on a recurring basis

Fair Value Measurements at June 30, 2016 (in thousands):

			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	$	36,324	$	—	$	36,324	$	—
States and municipals		95,410		—		95,410		—
Mortgage-backed - residential		134,638		—		134,638		—
Equity securities		350		350		—		—
Trading Assets		5,704		5,704		—		—
Total	$	272,426	$	6,054	$	266,372	$	—

Fair Value Measurements at December 31, 2015 (in thousands):

			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	$	48,863	$	—	$	48,863	$	—
States and municipals		91,962		—		91,962		—
Mortgage-backed - residential		123,043		—		123,043		—
Equity securities		344		344		—		—
Trading Assets		5,531		5,531		—		—
Total	$	269,743	$	5,875	$	263,868	$	—

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

	Fair Value Measurements at June 30, 2016 Using :
			Quoted Prices
			In Active
			Markets for	Significant Other	Significant
			Identical	Observable	Unobservable
	Carrying		Assets	Inputs	Inputs
(In thousands)	Value		(Level 1)	(Level 2)	(Level 3)
Description
Impaired loans:
Real Estate Mortgage:
Construction	$	164	—	—	$	164
1-4 family Residential		526	—	—		526
Non-farm & non-residential		371	—	—		371
Other real estate owned, net:
Residential		1,419	—	—		1,419
Loan servicing rights		1,106	—	—		1,106

	Fair Value Measurements at December 31, 2015 Using :
			Quoted Prices
			In Active
			Markets for	Significant Other	Significant
			Identical	Observable	Unobservable
	Carrying		Assets	Inputs	Inputs
(In thousands)	Value		(Level 1)	(Level 2)	(Level 3)
Description
Impaired loans:
Real Estate Mortgage:
Multi-family residential		540	—	—	$	540
Non-farm & non-residential		285	—	—		285
Agricultural		—	—	—		—
Other real estate owned, net:
Residential		1,504	—	—		1,504
Loan servicing rights		87	—	—		87

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

				Range
June 30, 2016	Fair	Valuation	Unobservable	(Weighted
(In thousands)	Value	Technique(s)	Input(s)	Average)
Impaired loans
Construction	164	sales comparison	adjustment for differences between the comparable sales	1%-4%	(3)%
1-4 family	526	sales comparison	adjustment for differences between the comparable sales	0%-12%	(7)%
Non-farm & non-residential	371	sales comparison	adjustment for differences between the comparable sales	4%-44%	(23)%
Other real estate owned:
Residential	808	sales comparison	adjustment for differences between the comparable sales	10%-28%	(19)%
	611	income approach	capitalization rate	10%-10%	(10)%
Loan Servicing Rights	1,106	discounted cash flow	discount rate	9%-20%	(11)%

				Range
December 31, 2015	Fair	Valuation	Unobservable	(Weighted
(In thousands)	Value	Technique(s)	Input(s)	Average)
Impaired loans
Real estate mortgage:
1-4 family residential	540	sales comparison	adjustment for differences between the comparable sales	1%-12%	(7)%
Non-farm & non-residential	285	sales comparison	adjustment for differences between the comparable sales	23%-31%	(27)%
Other real estate owned:
Residential	1,504	sales comparison	adjustment for differences between the comparable sales	10%-28%	(19)%
		income approach	capitalization rate	10%-10%	(10)%
Loan Servicing Rights	87	discounted cash flow	discount rate	8%-21%	(11)%

Schedule of carrying amounts and estimated fair values of financial instruments

June 30, 2016:

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	16,628	$	16,628	$	—	$	—	$	16,628
Interest bearing deposits		4,829		4,829		—		—		4,829
Securities		266,722		350		266,372		—		266,722
Trading assets		5,704		5,704		—		—		5,704
Mortgage loans held for sale		1,485		—		1,532		—		1,532
Loans, net		646,018		—		—		645,250		645,250
FHLB Stock		7,034		—		—		—		N/A
Interest receivable		3,641		—		1,322		2,319		3,641
Financial liabilities
Deposits	$	751,396	$	557,472	$	195,233	$	—	$	752,705
Securities sold under agreements to repurchase		26,057		—		26,108		—		26,108
FHLB advances		99,617		—		98,366		—		98,366
Note payable		4,695				5,273				5,273
Subordinated debentures		7,217		—		—		7,208		7,208
Interest payable		693		—		623		70		693

December 31, 2015:

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	28,048	$	28,048	$	—	$	—	$	28,048
Interest bearing deposits		4,874		4,874		—		—		4,874
Securities		264,212		344		263,868		—		264,212
Trading assets		5,531		5,531		—		—		5,531
Mortgage loans held for sale		624		—		633		—		633
Loans, net		617,600		—		—		616,206		616,206
FHLB Stock		7,034		—		—		—		N/A
Interest receivable		3,681		—		1,358		2,323		3,681
Financial liabilities
Deposits	$	758,981	$	557,146	$	203,192	$	—	$	760,338
Securities sold under agreements to repurchase		18,514		—		18,523		—		18,523
FHLB advances		87,833		—		82,349		—		82,349
Note payable		4,794		—		5,431		—		5,431
Subordinated debentures		7,217		—		—		7,206		7,206
Interest payable		659		—		649		10		659