FAIR VALUES (Tables)

9 Months Ended

Sep. 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 September 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	$	—	$	24,311	$	—
Taxable municipals		—		2,293		—
Corporate bonds		—		4,097		—
Mortgage backed securities		—		37,530		—
(On a non-recurring basis) Other real estate owned		—		—		7,506
Impaired loans:
Real estate secured:
Commercial		—		—		4,480
Construction and land development		—		—		133
Residential 1-4 family		—		—		4,273
Multifamily		—		—		1,401
Farmland		—		—		1,865
Commercial		—		—		315
Agriculture		—		—		18
Consumer installment loans		—		—		8
All other loans		—		—		—
Total	$	—	$	68,231	$	19,999

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 September 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows:

For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows:
(Dollars in thousands)		Fair Value at September 30, 2017		Fair Value at December 31, 2016	Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired Loans	$	12,493	$	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	$	7,506	$	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 September 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)
September 30, 2017
Financial Instruments – Assets
Net Loans	$	495,304	$	497,359	$	—	$	484,866	$	12,493
Financial Instruments – Liabilities
Time Deposits		267,283		266,990		—		266,990		—
FHLB Advances		7,858		8,053		—		8,053		—
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		—