FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

FAIR VALUE MEASUREMENTS

Schedule presenting information for financial instruments

The following table presents information for financial instruments at March 31, 2018 and December 31, 2017 (dollars in thousands):

		March 31, 2018				December 31, 2017
	Level in Fair	Carrying		Estimated		Carrying		Estimated
	Value Hierarchy	Amount		Fair Value		Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	40,427		40,427	$	37,426	$	37,426
Interest-bearing deposits	Level 2		11,391		11,391		13,374		13,374
Securities available for sale	Level 2		72,402		72,402		74,397		74,397
Securities available for sale	Level 3		1,000		1,000		1,000		1,000
Other securities	Level 3		500		500		500		500
Federal Home Loan Bank stock	Level 2		3,112		3,112		3,112		3,112
Net loans	Level 3		807,340		797,652		805,999		797,726
Accrued interest receivable	Level 3		2,078		2,078		2,276		2,276
Total financial assets		$	938,250	$	928,562	$	938,084	$	929,811
Financial liabilities:
Deposits	Level 2	$	806,797		772,589	$	817,998	$	788,632
Borrowings	Level 2		90,002		89,084		79,552		79,242
Accrued interest payable	Level 3		297		297		322		322
Total financial liabilities		$	897,096	$	861,970	$	897,872	$	868,196

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, 2018		(Level 1)		(Level 2)		(Level 3)		March 31, 2018
Assets
Corporate	$	24,222	$	—	$	24,222	$	—	$	—
Equity		500		—		—		500		—
US Agencies		16,657		—		16,657		—		—
US Agencies - MBS		11,677		—		11,677		—		—
Obligations of state and political subdivisions		20,846		—		19,846		1,000		—
	$	73,902							$	—

			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							$	—

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

Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2018

			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, 2018		(Level 1)		(Level 2)		(Level 3)		March 31, 2018
Assets
Impaired loans	$	6,489	$	—	$	—	$	6,489	$	—
Other real estate owned		2,526		—		—		2,526		26
									$	26

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

			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