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FAIR VALUES (Tables)
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Summary of assets and liabilities measured at fair value

Assets and liabilities measured at fair value are as follows as of June 30, 2017 (for purpose of this table the impaired loans are shown net of the related allowance):

 

(Dollars are in thousands)   Quoted market
price in active
markets
(Level 1)
    Significant other
observable
inputs
(Level 2)
    Significant
unobservable
inputs
(Level 3)
 
(On a recurring basis)                        
Available-for-sale investments                        
    U.S. Government Agencies   $     $ 26,845     $  
    Taxable municipals           2,315        
    Corporate bonds           5,090        
    Mortgage backed securities           41,545        
                         
(On a non-recurring basis)                        
Other real estate owned                 7,248  
Impaired loans:                        
  Real estate secured:                        
      Commercial                 3,627  
      Construction and land development                 134  
      Residential 1-4 family                 4,313  
      Multifamily                 1,404  
      Farmland                 1,458  
  Commercial                 315  
  Agriculture                 18  
  Consumer installment loans                 9  
  All other loans                  
Total   $     $ 75,795     $ 18,526  

 

Assets and liabilities measured at fair value are as follows as of December 31, 2016 (for purpose of this table the impaired loans are shown net of the related allowance): 

 

(Dollars are in thousands)   Quoted market
price in active
markets
(Level 1)
    Significant other
observable
inputs
(Level 2)
    Significant
unobservable
inputs
(Level 3)
 
(On a recurring basis)                        
Available-for-sale investments                        
    U.S. Government Agencies   $     $ 24,632     $  
    Taxable municipals           2,292        
    Corporate bonds           3,749        
    Mortgage backed securities           39,338        
                         
(On a non-recurring basis)                        
Other real estate owned                 10,655  
Impaired loans:                        
  Real estate secured:                        
      Commercial                 4,762  
      Construction and land development                 139  
      Residential 1-4 family                 4,360  
      Multifamily                 301  
      Farmland                 4,187  
  Commercial                 49  
  Agriculture                 19  
  Consumer installment loans                 32  
  All other loans                  
Total   $     $ 70,011     $ 24,504  
Schedule of significant unobservable inputs in level 3 assets

For Level 3 assets measured at fair value on a recurring or non-recurring basis as of June 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows:

 

(Dollars in thousands)   Fair Value at
June 30,
2017
    Fair Value at
December 31,
2016
    Valuation
Technique
  Significant
Unobservable
Inputs
  General Range
of Significant
Unobservable
Input Values
                         
Impaired Loans   $ 11,278     $ 13,849     Appraised Value/Discounted Cash Flows/Market Value of Note   Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell   0 – 18%
                             
Other Real Estate Owned   $ 7,248     $ 10,655     Appraised Value/Comparable Sales/Other Estimates from Independent Sources   Discounts to reflect current market conditions and estimated costs to sell   0 – 18%
Estimated fair value of financial instruments

The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of June 30, 2017 and December 31, 2016.

 

                Fair Value Measurements  
(Dollars are in thousands)   Carrying
Amount
    Fair
Value
    Quoted market price in active markets
(Level 1)
    Significant other observable inputs
(Level 2)
    Significant unobservable inputs
(Level 3)
 
                               
June 30, 2017                                        
Financial Instruments – Assets                                        
   Net Loans   $ 482,457     $ 485,235     $     $ 473,957     $ 11,278  
                                         
Financial Instruments – Liabilities                                        
   Time Deposits     267,596       267,293             267,293        
   FHLB Advances     8,158       8,356             8,356        
                                         
December 31, 2016                                        
Financial Instruments – Assets                                        
   Net Loans   $ 462,557     $ 467,707     $     $ 453,858     $ 13,849  
                                         
Financial Instruments – Liabilities                                        
   Time Deposits     247,819       247,258             247,258        
   FHLB Advances     13,758       13,993             13,993