FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2017

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, 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	$	37,426		37,426	$	46,755	$	46,755
Interest-bearing deposits	Level 2		13,374		13,374		14,047		14,047
Securities available for sale	Level 2		74,397		74,397		84,623		84,623
Securities available for sale	Level 3		1,500		1,500		1,650		1,650
Federal Home Loan Bank stock	Level 2		3,112		3,112		2,911		2,911
Net loans	Level 3		805,999		797,726		776,837		778,377
Accrued interest receivable	Level 3		2,276		2,276		2,016		2,016
Total financial assets		$	938,084	$	929,811	$	928,839	$	930,379
Financial liabilities:
Deposits	Level 2	$	817,998		788,632	$	823,512	$	815,960
Borrowings	Level 2		79,552		79,242		67,579		68,293
Accrued interest payable	Level 3		322		322		267		267
Total financial liabilities		$	897,872	$	868,196	$	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
			in Active Markets		Other Observable		Unobservable		Total Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Twelve months ended
(dollars in thousands)	December 31, 2017		(Level 1)		(Level 2)		(Level 3)		December 31, 2017
Assets
Corporate	$	24,391	$	—	$	24,391	$	—	$	—
Equity		500		—		—		500		—
US Agencies		16,846		—		16,846		—		—
US Agencies - MBS		12,716		—		12,716		—		—
Obligations of state and political subdivisions		21,444		—		20,444		1,000		—
	$	75,897							$	—

			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 activity in level three assets

	Balance at						Transfers						Balance
	Beginning		Net Gains (losses)				in (out) of						at end
	of Period		Realized		Unrealized		Level 3		Purchases		Sales		of Period
Year Ended December 31, 2017
Equity	$	500	$	—	$	—	$	—	$	—	$	—	$	500
US Agencies- MBS		1,150		38		—		—		—		(1,188)		—
Obligations of state and political subdivisions		—		—		—		740		260		—		1,000

	Balance at						Transfers						Balance
	Beginning		Net Gains (losses)				in (out) of						at end
	of Period		Realized		Unrealized		Level 3		Purchases		Sales		of Period
Year Ended December 31, 2016
Equity	$	—	$	—	$	—	$	—	$	500	$	—	$	500
US Agencies- MBS		—		—		—		—		1,150		—		1,150

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, 2017		(Level 1)		(Level 2)		(Level 3)		December 31, 2017
Assets
Impaired loans	$	3,852	$	—	$	—	$	3,852	$	141
Other real estate held for sale		3,558		—		—		3,558		388
									$	529

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		Year 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