11. FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2018

Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table

Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings

	Carrying		Fair Value Measurements Using:
September 30, 2018	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	24,634	$	24,634	$	—	$	—	$	24,634
Federal funds sold		10,000		10,000		—		—		10,000
Interest-bearing deposits in banks		1,746		—		1,746		—		1,746
Available-for-sale securities		277,269		4,963		273,306		—		277,269
Held-to-maturity securities		311		—		328		—		328
FHLB stock		3,932		N/A		N/A		N/A		N/A
Net loans and leases:		310,322		—		—		306,226		306,226
Accrued interest receivable		1,919		—		983		936		1,919
Financial liabilities:
Deposits:
Noninterest-bearing	$	209,322	$	209,322	$	—	$	—	$	209,322
Savings		74,765		74,765		—		—		74,765
Money market		150,050		150,050		—		—		150,050
NOW accounts		64,682		64,682		—		—		64,682
Time Deposits		77,001		—		76,687		—		76,687
Short-term borrowings		6,500		6,500		—		—		6,500
Long-term borrowings		9,000		—		9,124		—		9,124
Accrued interest payable		69		7		62		—		69

	Carrying		Fair Value Measurements Using:
December 31, 2017	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	38,467	$	38,467	$	—	$	—	$	38,467
Interest-bearing deposits in banks		1,746		—		1,750		—		1,750
Available-for-sale securities		262,322		66		262,256		—		262,322
Held-to-maturity securities		378		—		404		—		404
FHLB stock		3,932		N/A		N/A		N/A		N/A
Net loans and leases:		308,713		—		—		317,900		317,900
Accrued interest receivable		1,956		—		1,124		832		1,956
Financial liabilities:
Deposits:
Noninterest-bearing	$	215,528	$	215,528	$	—	$	—	$	215,528
Savings		66,130		66,130		—		—		66,130
Money market		130,032		130,032		—		—		130,032
Interest checking		64,709		64,709		—		—		64,709
Time Deposits		79,681		—		79,614		—		79,614
Short-term borrowings		3,500		3,500		—		—		3,500
Long-term borrowings		12.000		—		11,978		—		11,978
Accrued interest payable		65		4		61		—		65

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Description			Fair Value Measurements Using						Total Gains
(dollars in thousands)	Fair Value		Level 1		Level 2		Level 3		(Losses)
September 30, 2018
Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
US Government Agencies and Sponsored Entities	$	250,290	$	—	$	250,290	$	—	$	—
Obligations of states and political subdivisions		15,541		—		15,541		—		—
Corporate bonds		6,475		—		6,475		—		—
U.S. Treasury bonds		4,963		4,963		—		—		—
Total recurring	$	277,269	$	4,963	$	272,306	$	—	$	—
Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Real estate:
Commercial	$	5,131	$	—	$	—	$	5,131	$	—
Other real estate owned
Land		961		—		—		961		—
Total nonrecurring	$	6,902	$	—	$	—	$	6,902	$	—
Description			Fair Value Measurements Using						Total Gains
(dollars in thousands)	Fair Value		Level 1		Level 2		Level 3		(Losses)
December 31, 2017
Assets and liabilities measured on a recurring basis:
Available-for-sale securities:
US Government Agencies and
Sponsored Agencies	$	232,869	$	—	$	232,869	$	—	$	—
Corporate Debt securities		6,626		—		6,626
Obligations of states and political subdivisions		22,715		—		22,715		—		—
Corporate stock		112		66		46		—		—
Total recurring	$	262,322	$	66	$	262,256	$	—	$	—
Assets and liabilities measured on a nonrecurring basis:
Impaired loans:
Commercial	$	1,598	$	—	$	—	$	1,598	$	(1,073	)
Real estate:
Commercial		178		—		—		178		—
Residential		329		—		—		329		—
Other real estate owned
Land		961		—		—		961		—
Total nonrecurring	$	3,066	$	—	$	—	$	3,066	$	(1,073	)