FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of assets measured at fair value on a recurring basis

Assets measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
Available for sale securities
Residential government-sponsored mortgage-backed securities	$	48,979	$	—	$	48,979	$	—
Obligations of states and political subdivisions		17,582		—		17,582		—
Corporate securities		2,012		—		1,012		1,000
Trust preferred securities		2,568		—		2,568		—
Residential government-sponsored collateralized mortgage obligations		36,689		—		36,689		—
Government-sponsored agency securities		14,822		—		14,822		—
Agency commercial mortgage-backed securities		27,731		—		27,731		—
SBA pool securities		14,437		—		14,437		—
Total	$	164,820	$	—	$	163,820	$	1,000

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Available for sale securities
Residential government-sponsored mortgage-backed securities	$	27,302	$	—	$	27,302	$	—
Obligations of states and political subdivisions		18,055		—		18,055		—
Corporate securities		2,008		—		1,008		1,000
Trust preferred securities		2,641		—		2,641		—
Residential government-sponsored collateralized mortgage obligations		43,057		—		43,057		—
Government-sponsored agency securities		3,125		—		3,125		—
Agency commercial mortgage-backed securities		27,304		—		27,304		—
SBA pool securities		19,885		—		19,885		—
Total	$	143,377	$	—	$	142,377	$	1,000

No corporate securities that are classified as Level 3 above were purchased or sold during 2019. These corporate securities did not have a material impact on the income statement for the year ended December 31, 2019.

Schedule of assets measured at fair value on non recurring basis

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Commercial real estate - owner occupied	$	6,890	$	—	$	—	$	6,890
Commercial real estate - non-owner occupied (1)		3,296		—		—		3,296
Construction and land development		345		—		—		345
Commercial loans		7,547		—		—		7,547
Residential 1-4 family (2)		3,862		—		—		3,862
Consumer		39		—		—		39
Assets held for sale		—		—		—		—
Other real estate owned:
Commercial real estate - owner occupied (1)		1,984		—		—		1,984
Construction and land development		2,874		—		—		2,874
Residential 1-4 family (2)		1,366		—		—		1,366

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Commercial real estate - owner occupied	$	2,795	$	—	$	—	$	2,795
Commercial real estate - non-owner occupied (1)		171		—		—		171
Commercial loans		6,076		—		—		6,076
Residential 1-4 family (2)		3,020		—		—		3,020
Assets held for sale		600		—		—		600
Other real estate owned:
Commercial real estate - owner occupied (1)		908		—		—		908
Construction and land development		2,938		—		—		2,938
Residential 1-4 family (2)		1,231		—		—		1,231

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

Schedule of estimated fair values and fair value hierarchy levels of financial instruments

The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands) for the periods indicated:

		December 31, 2019				December 31, 2018
	Fair Value	Carrying		Fair		Carrying		Fair
	Hierarchy Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	31,928	$	31,928	$	28,611	$	28,611
Securities available for sale	Level 2 & Level 3		164,820		164,820		143,377		143,377
Securities held to maturity	Level 2		72,448		72,666		92,462		89,109
Stock in Federal Reserve Bank and Federal Home Loan Bank	Level 2		17,832		17,832		19,522		19,522
Equity investment in mortgage affiliate	Level 3		5,020		5,020		3,829		3,829
Preferred investment in mortgage affiliate	Level 3		3,305		3,305		3,305		3,305
Net loans	Level 3		2,175,786		2,180,487		2,166,541		2,134,021
Accrued interest receivable	Level 2 & Level 3		8,210		8,210		8,745		8,745
Financial liabilities:
Demand deposits and NOW accounts	Level 2	$	730,325	$	730,325	$	665,640	$	665,640
Money market and savings accounts	Level 2		611,353		611,353		506,519		506,519
Time deposits	Level 3		783,040		786,420		925,441		919,175
Securities sold under agreements to repurchase	Level 1		12,883		12,883		18,721		18,721
FHLB short term advances	Level 1		121,640		121,640		163,340		163,340
Junior subordinated debt	Level 2		9,632		9,206		9,584		12,065
Senior subordinated notes	Level 2		47,051		48,156		47,089		57,173
Accrued interest payable	Level 1 & Level 3		4,907		4,907		3,985		3,985