FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2020

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)	March 31, 2020		(Level 1)		(Level 2)		(Level 3)
Available for sale securities
Residential government-sponsored mortgage-backed securities	$	50,279	$	—	$	50,279	$	—
Obligations of states and political subdivisions		16,829		—		16,829		—
Corporate securities		2,014		—		1,014		1,000
Trust preferred securities		2,266		—		2,266		—
Residential government-sponsored collateralized mortgage obligations		35,831		—		35,831		—
Government-sponsored agency securities		19,975		—		19,975		—
Agency commercial mortgage-backed securities		28,245		—		28,245		—
SBA pool securities		13,081		—		13,081		—
Total	$	168,520	$	—	$	167,520	$	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, 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

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)	March 31, 2020		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Commercial real estate - owner occupied	$	5,986	$	—	$	—	$	5,986
Commercial real estate - non-owner occupied (1)		3,231		—		—		3,231
Construction and land development		357		—		—		357
Commercial loans		7,691		—		—		7,691
Residential 1-4 family (2)		5,103		—		—		5,103
Consumer		20		—		—		20
Other real estate owned:
Commercial real estate - owner occupied (1)		1,984		—		—		1,984
Construction and land development		2,666		—		—		2,666
Residential 1-4 family (2)		1,226		—		—		1,226

			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
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

(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:

		March 31, 2020				December 31, 2019
	Fair Value	Carrying		Fair		Carrying		Fair
	Hierarchy Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	55,865	$	55,865	$	31,928	$	31,928
Securities available for sale	Level 2 & Level 3		168,520		168,520		164,820		164,820
Securities held to maturity	Level 2		59,234		60,426		72,448		72,666
Stock in Federal Reserve Bank and Federal Home Loan Bank	Level 2		21,396		21,396		17,832		17,832
Equity investment in mortgage affiliate	Level 3		5,251		5,251		5,020		5,020
Preferred investment in mortgage affiliate	Level 3		3,305		3,305		3,305		3,305
Net loans	Level 3		2,199,816		2,217,962		2,175,786		2,180,487
Accrued interest receivable	Level 2 & Level 3		8,548		8,548		8,210		8,210
Financial liabilities:
Demand deposits and NOW accounts	Level 2	$	719,072	$	719,072	$	730,325	$	730,325
Money market and savings accounts	Level 2		629,066		629,066		611,353		611,353
Time deposits	Level 3		727,216		736,513		783,040		786,420
Securities sold under agreements to repurchase	Level 1		13,179		13,179		12,883		12,883
FHLB short term advances	Level 1		205,140		205,140		121,640		121,640
Junior subordinated debt	Level 2		9,645		8,787		9,632		9,206
Senior subordinated notes	Level 2		47,041		48,044		47,051		48,156
Accrued interest payable	Level 1 & Level 3		5,025		5,025		4,907		4,907