FAIR VALUES (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Summary of assets and liabilities measured at fair value

Assets measured at fair value on a recurring basis are as follows. There were no liabilities measured at fair value on a recurring basis.

(Dollars are in thousands)       March 31, 2018	Quoted market price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-for-sale investments
U.S. Government Agencies	$	—	$	22,613	$	—
Taxable municipals		—		4,292		—
Corporate bonds		—		5,406		—
Mortgage backed securities		—		34,722		—
Total	$	—	$	67,033	$	—
December 31, 2017
Available-for-sale investments
U.S. Government Agencies	$	—	$	23,844	$	—
Taxable municipals		—		4,397		—
Corporate bonds		—		5,579		—
Mortgage backed securities		—		37,268		—
Total	$	—	$	71,088	$	—

Schedule of Assets measured at fair value on a non-recurring

Assets measured at fair value on a non-recurring basis are as follows (for purpose of this table the impaired loans are shown net of the related allowance). There were no liabilities measured at fair value on a non-recurring basis.

(Dollars are in thousands)       March 31, 2018	Quoted market price in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Other real estate owned	$	—	$	—	$	6,711
Impaired loans		—		—		9,918
Total	$	—	$	—	$	16,629
December 31, 2017
Other real estate owned	$	—	$	—	$	6,859
Impaired loans		—		—		11,394
Total	$	—	$	—	$	18,253

Schedule of significant unobservable inputs in level 3 assets

For Level 3 assets measured at fair value on a recurring or non-recurring basis, 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 March 31, 2018	Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired Loans	$	9,918	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		6,711	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.

						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)
March 31, 2018
Financial Instruments – Assets
Net Loans	$	510,661	$	499,763	$	-	$	489,845	$	9,918
Financial Instruments – Liabilities
Time Deposits		265,025		264,945		-		264,945		-
FHLB Advances		7,258		7,557		-		7,557		-
Trust Preferred Securities		16,496		13,575		-		13,575		-
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		-
Trust Preferred Securities		16,496		16,496		-		16,496
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