FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2019

FAIR VALUE MEASUREMENTS

Schedule of assets measured at fair value on a recurring basis

Fair Value Measurements at September 30, 2019 (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)
Financial Assets
U.S. treasury notes	$	2,987	$	—	$	2,987	$	—
U. S. government agencies		22,193		—		22,193		—
States and political subdivisions		36,073		—		36,073		—
Mortgage-backed - residential		95,315		—		95,315		—
Mortgage-backed-commercial		54,114		—		54,114		—
Asset-backed		35,860		—		35,860		—
Derivatives and financial instrument assets		290		—		290		—
Other Assets		293		293		—		—
Total	$	247,125	$	293	$	246,832	$	—
Financial Liabilities
Derivatives and financial instrument liabilities	$	287	$	—	$	287	$	—

Fair Value Measurements at December 31, 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	$	3,975	$	—	$	3,975	$	—
U. S. government agencies		41,178		—		41,178		—
States and political subdivisions		64,204		—		64,204		—
Mortgage-backed - residential		147,249		—		147,249		—
Mortgage-backed - commercial		48,563		—		48,563		—
Asset-backed		10,200		—		10,200		—
Other Assets		284		284		—		—
Total	$	315,653	$	284	$	315,369	$	—

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

	Fair Value Measurements at September 30, 2019 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:
1-4 family residential	$	993	$	—	$	—	$		993
Other real estate owned, net:
Commercial		246		—		—			246
Agricultural		233		—		—			233
Mortgage servicing rights		902		—		—			902

	Fair Value Measurements at December 31, 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	$	993	$	—	$	—	$	993
Other real estate owned, net:
Commercial		246		—				246
Mortgage servicing rights		430		—		—		430

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, 2019		Fair	Valuation	Unobservable	(Weighted
(In thousands)		Value	Technique(s)	Input(s)	Average)
Impaired loans
Real estate mortgage:
1-4 family residential	$	993	sales comparison	adjustment for differences between the comparable sales	(30)% - 10%	(21)%
Other real estate owned:
Commercial		246	income approach	capitalization rate	10% - 10%	(10)%
Agricultural		233	sales comparison	adjustment for differences between the comparable sales	(29)% - 41%	(13)%
Mortgage servicing rights		902	discounted cash flow	constant prepayment rates	(8)% - (23)%	(13)%

					Range
December 31, 2018		Fair	Valuation	Unobservable	(Weighted
(In thousands)		Value	Technique(s)	Input(s)	Average)
Impaired loans
Real estate mortgage:
1-4 family residential	$	993	sales comparison	adjustment for differences between the comparable sales	(21)% - 7%	(7)%
Other real estate owned:
Commercial		246	income approach	capitalization rate	10% - 10%	(10)%
Mortgage servicing rights		430	discounted cash flow	constant prepayment rates	7% - 25%	(9)%

Schedule of carrying amounts and estimated fair values of financial instruments

September 30, 2019

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	25,290	$	25,290	$	—	$	—	$	25,290
Interest bearing time deposits		2,375		2,375		—		—		2,375
Securities available for sale		246,542		—		246,542		—		246,542
Loans held for sale		5,232		—		5,289		—		5,289
Net Loans		724,001		—		—		719,487		719,487
Federal Home Loan Bank stock		7,034		—		—		—		N/A
Interest receivable		4,028		—		979		3,049		4,028
Derivative and financial instruments		290		—		290		—		290
Other assets		293		293		—		—		293
Financial liabilities
Total deposits	$	829,201	$	603,289	$	225,311	$	—	$	828,600
Repurchase agreements		6,037		—		6,037		—		6,037
Short-term Federal Home Loan Bank advances		5,000		—		5,000		—		5,000
Long-term Federal Home Loan Bank advances		95,677		—		96,163		—		96,163
Note payable		1,996				2,092				2,135
Subordinated debentures		7,217		—		—		7,215		7,215
Interest payable		1,028		—		1,014		14		1,028
Derivative and financial instruments		287		—		287		—		287

December 31, 2018

	Carrying
(in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	26,101	$	26,101	$	—	$	—	$	26,101
Interest bearing time deposits		2,175		2,175		—		—		2,175
Securities available for sale		315,369		—		315,369		—		315,369
Loans held for sale		1,203		—		1,224		—		1,224
Net Loans		678,017		—		—		666,942		666,942
Federal Home Loan Bank stock		7,034		—		—		—		N/A
Interest receivable		4,150		—		1,346		2,804		4,150
Financial liabilities
Total deposits	$	850,442	$	620,885	$	226,734	$	—	$	847,619
Repurchase agreements		8,077		—		8,009		—		8,009
Short-term Federal Home Loan Bank advances		11,600		—		11,592		—		11,592
Long-term Federal Home Loan Bank advances		88,852		—		84,983		—		84,983
Note payable		2,718		—		2,841		—		2,841
Subordinated debentures		7,217		—		—		7,213		7,213
Interest payable		893		—		877		16		893