FAIR VALUES (Tables)

12 Months Ended

Dec. 31, 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 December 31, 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	$	-	$	23,844	$	-
Taxable municipals		-		4,397		-
Corporate bonds		-		5,579		-
Mortgage backed securities		-		37,268		-
(On a non-recurring basis) Other real estate owned		-		-		6,859
Impaired loans:
Real estate secured:
Commercial		-		-		4,650
Construction and land development		-		-		424
Residential 1-4 family		-		-		3,916
Multifamily		-		-		281
Farmland		-		-		1,399
Commercial		-		-		704
Agriculture		-		-		12
Consumer installment loans		-		-		8
All other loans		-		-		-
Total	$	-	$	71,088	$	18,253

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

(Dollars in thousands)		Fair Value at December 31, 2017		Fair Value at December 31, 2016	Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired Loans	$	11,394	$	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	$	6,859	$	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 during the months of December 2017 and 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)
December 31, 2017
Financial Instruments – Assets
Net Loans	$	506,812	$	506,608	$	-	$	495,214	$	11,394
Financial Instruments – Liabilities
Time Deposits		272,330		272,352		-		272,352		-
FHLB Advances		7,558		7,794		-		7,794		-
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		-