FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2017

FAIR VALUE MEASUREMENTS

Schedule presenting information for financial instruments

The following table presents information for financial instruments at March 31, 2017 and December 31, 2016 (dollars in thousands):

		March 31, 2017				December 31, 2016
	Level in Fair	Carrying		Estimated		Carrying		Estimated
	Value Hierarchy	Amount		Fair Value		Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	41,169	$	41,169	$	46,755	$	46,755
Interest-bearing deposits	Level 2		13,448		13,448		14,047		14,047
Securities available for sale	Level 2		82,232		82,232		84,623		84,623
Securities available for sale	Level 3		1,650		1,650		1,650		1,650
Federal Home Loan Bank stock	Level 2		2,719		2,719		2,911		2,911
Net loans	Level 3		781,400		780,377		776,837		778,377
Accrued interest receivable	Level 3		2,026		2,026		2,016		2,016
Total financial assets		$	924,644	$	923,621	$	928,839	$	930,379
Financial liabilities:
Deposits	Level 2	$	821,820	$	814,259	$	823,512	$	815,960
Borrowings	Level 2		66,279		66,853		67,579		68,293
Accrued interest payable	Level 3		287		287		267		267
Total financial liabilities		$	888,386	$	881,399	$	891,358	$	884,520

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		Total (Gains)
			in Active Markets		Other Observable		Unobservable		Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Three Months Ended
(dollars in thousands)	March 31,  2017		(Level 1)		(Level 2)		(Level 3)		March 31, 2017
Assets
Corporate	$	19,952	$	—	$	19,952	$	—	$	—
Equity		500		—		—		500		—
US Agencies		23,053		—		23,053		—		—
US Agencies - MBS		15,856		—		14,706		1,150		—
Obligations of state and political subdivisions		24,521		—		24,521		—		—
	$	83,882							$	—

			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

Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2017

			Quoted Prices		Significant		Significant		Total (Gains)
			in Active Markets		Other Observable		Unobservable		Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Three Months Ended
(dollars in thousands)	March 31, 2017		(Level 1)		(Level 2)		(Level 3)		March 31, 2017
Assets
Impaired loans	$	7,788	$	—	$	—	$	7,788	$	37
Other real estate owned		4,466		—		—		4,466		12
									$	49

Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2016

			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