FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2016

FAIR VALUE MEASUREMENTS

Schedule presenting information for financial instruments

The following table presents information for financial instruments at December 31 (dollars in thousands):

		December 31, 2016				December 31, 2015
	Level in Fair	Carrying		Estimated		Carrying		Estimated
	Value Hierarchy	Amount		Fair Value		Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	46,755	$	46,755	$	25,008	$	25,008
Interest-bearing deposits	Level 2		14,047		14,047		5,089		5,089
Securities available for sale	Level 2		84,623		84,623		53,728		53,728
Securities available for sale	Level 3		1,650		1,650		—		—
Federal Home Loan Bank stock	Level 2		2,911		2,911		2,169		2,169
Net loans	Level 3		776,837		778,377		613,390		614,187
Accrued interest receivable	Level 3		2,016		2,016		1,416		1,416
Total financial assets		$	928,839	$	930,379	$	700,800	$	701,597
Financial liabilities:
Deposits	Level 2	$	823,512	$	815,960	$	610,323	$	607,636
Borrowings	Level 2		67,579		68,293		45,754		45,989
Accrued interest payable	Level 3		267		267		174		174
Total financial liabilities		$	891,358	$	884,520	$	656,251	$	653,799

Schedule of investment securities measured at fair value on a recurring basis

The table below shows investment securities measured at fair value on a recurring basis (dollars in thousands):

			Quoted Prices		Significant		Significant
			in Active Markets		Other Observable		Unobservable		Total Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Twelve months ended
(dollars in thousands)	December 31, 2016		(Level 1)		(Level 2)		(Level 3)		December 31, 2016
Assets
Corporate	$	19,910	$	—	$	19,910	$	—	$	—
Equity		500		—		—		500		—
US Agencies		23,952		—		23,952		—		—
US Agencies - MBS		16,833		—		15,683		1,150		—
Obligations of state and political subdivisions		25,078		—		25,078		—		—
		86,273							$	—

Schedule of assets measured at fair value on a non-recurring basis

			Quoted Prices		Significant		Significant
			in Active Markets		Other Observable		Unobservable		Total Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Twelve months ended
(dollars in thousands)	December 31, 2016		(Level 1)		(Level 2)		(Level 3)		December 31, 2016
Assets
Impaired loans	$	9,856	$	—	$	—	$	9,856	$	643
Other real estate held for sale		4,782		—		—		4,782		202
									$	845

Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2015

			Quoted Prices		Significant		Significant
			in Active Markets		Other Observable		Unobservable		Total Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Year Ended
(dollars in thousands)	December 31, 2015		(Level 1)		(Level 2)		(Level 3)		December 31, 2015
Assets
Impaired loans	$	10,724	$	—	$	—	$	10,724	$	1,852
Other real estate held for sale		2,324		—		—		2,324		332
									$	2,184