FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2018

FAIR VALUE MEASUREMENTS

Schedule of assets measured at fair value on a recurring basis

Fair Value Measurements at September 30, 2018 (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. treasury notes	$	3,940	$	—	$	3,940	$	—
U. S. government agencies		31,921		—		31,921		—
States and municipals		70,955		—		70,955		—
Mortgage-backed - residential		126,706		—		126,706		—
Mortgage-backed-commercial		44,772		—		44,772		—
Equity securities		281		281		—		—
Total	$	278,575	$	281	$	278,294	$	—

Fair Value Measurements at December 31, 2017 (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. treasury notes	$	4,024	$	—	$	4,024	$	—
U. S. government agencies		41,705		—		41,705		—
States and municipals		90,135		—		90,135		—
Mortgage-backed - residential		130,377		—		130,377		—
Mortgage-backed - commercial		51,596		—		51,596		—
Equity securities		340		340		—		—
Total	$	318,177	$	340	$	317,837	$	—

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

	Fair Value Measurements at September 30, 2018 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:
1-4 family Residential	$	127	—	$	—	$	127
Other real estate owned, net:
Residential		93	—		—		93
Commercial		246	—		—		246

	Fair Value Measurements at December 31, 2017 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:
1-4 family residential	$	183	—	$	—	$	183
Other real estate owned, net:
Residential		910	—		—		910
Commercial		200	—		—		200
Mortgage servicing rights		1,323	—		—		1,323

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

					Range
September 30, 2018		Fair	Valuation	Unobservable	(Weighted
(In thousands)		Value	Technique(s)	Input(s)	Average)
Impaired loans
Real estate mortgage:
1-4 family residential	$	127	sales comparison	adjustment for differences between the comparable sales	0%-27%	(2)%
Other real estate owned:
Residential		93	sales comparison	adjustment for differences between the comparable sales	0%-16%	(6)%
Commercial		246	income approach	capitalization rate	10%-10%	(10)%

					Range
December 31, 2017		Fair	Valuation	Unobservable	(Weighted
(In thousands)		Value	Technique(s)	Input(s)	Average)
Impaired loans
Real estate mortgage:
1-4 family residential	$	183	sales comparison	adjustment for differences between the comparable sales	3%-27%	(15)%
Other real estate owned:
Residential		910	sales comparison	adjustment for differences between the comparable sales	0%-16%	(6)%
Commercial		200	income approach	capitalization rate	10%-10%	(10)%
Mortgage Servicing Rights		1,323	discounted cash flow	constant prepayment rates	7%-25%	(10)%

Schedule of carrying amounts and estimated fair values of financial instruments

September 30, 2018:

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	26,097	$	26,097	$	—	$	—	$	26,097
Interest bearing time deposits		2,275		2,275		—		—		2,275
Securities available for sale		278,575		281		278,294		—		278,575
Loans held for sale		3,699		—		3,745		—		3,745
Net Loans		677,539		—		—		669,317		669,317
Federal Home Loan Bank stock		7,034		—		—		—		N/A
Interest receivable		4,138		—		1,228		2,910		4,138
Financial liabilities
Total deposits	$	820,740	$	617,646	$	199,878	$	—	$	817,524
Repurchase agreements		8,248		—		8,280		—		8,280
Short-term Federal Home Loan Bank advances		11,900		—		11,900		—		11,900
Long-term Federal Home Loan Bank advances		91,824		—		91,377		—		91,377
Note payable		2,841		—		2,975		—		2,975
Subordinated debentures		7,217		—		—		7,209		7,209
Interest payable		818		—		804		14		818

December 31, 2017:

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	39,172	$	39,172	$	—	$	—	$	39,172
Interest bearing time deposits		1,830		1,830		—		—		1,830
Securities available for sale		318,177		340		317,837		—		318,177
Loans held for sale		1,231		—		1,269		—		1,269
Net Loans		640,815		—		—		639,421		639,421
Federal Home Loan Bank stock		7,034		—		—		—		—
Interest receivable		3,951		—		1,378		2,573		3,951
Financial liabilities
Total deposits	$	815,273	$	621,139	$	195,143	$	—	$	816,282
Repurchase agreements		19,900		—		19,968		—		19,968
Short-term Federal Home Loan Bank advances		8,400		—		8,393		—		8,393
Long-term Federal Home Loan Bank advances		90,332		—		86,899		—		86,899
Note payable		3,321		—		3,560		—		3,560
Subordinated debentures		7,217		—		—		7,212		7,212
Interest payable		838		—		825		13		838