FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2018

FAIR VALUE

Schedule presenting information for financial instruments

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

		December 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	$	64,157	$	64,157	$	37,426	$	37,426
Interest-bearing deposits	Level 2		13,452		13,452		13,374		13,374
Securities available for sale	Level 2		115,260		115,260		74,397		74,397
Securities available for sale	Level 3		1,488		1,488		1,500		1,500
Federal Home Loan Bank stock	Level 2		4,924		4,924		3,112		3,112
Net loans	Level 3		1,033,681		1,013,214		805,999		797,726
Accrued interest receivable	Level 3		3,005		3,005		2,276		2,276
Total financial assets		$	1,235,967	$	1,215,500	$	938,084	$	929,811
Financial liabilities:
Deposits	Level 2	$	1,097,537	$	1,047,709	$	817,998	$	788,632
Borrowings	Level 2		57,536		56,771		79,552		79,242
Accrued interest payable	Level 3		391		391		322		322
Total financial liabilities		$	1,155,464	$	1,104,871	$	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
			in Active Markets		Other Observable		Unobservable		Total Losses for
	Balance at		for Identical Assets		Inputs		Inputs		Twelve months ended
(dollars in thousands)	December 31, 2018		(Level 1)		(Level 2)		(Level 3)		December 31, 2018
Assets
Corporate	$	20,064	$	—	$	19,564	$	500	$	—
US Agencies		15,970		—		15,970		—		—
US Agencies - MBS		32,840		—		32,840		—		—
Obligations of state and political subdivisions		47,874		—		46,886		988		—
	$	116,748							$	—

			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	$	24,891	$	—	$	24,391	$	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 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, 2018
Corporate	$	500	$	—	$	—	$	—	$	—	$	—	$	500
Obligations of state and political subdivisions		1,000		—		—		(12)		—		—		988

	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
Corporate	$	500	$	—	$	—	$	—	$	—	$	—	$	500
US Agencies- MBS		1,150		38		—		—		—		(1,188)		—
Obligations of state and political subdivisions		—		—		—		740		260		—		1,000

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

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

			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, 2018		(Level 1)		(Level 2)		(Level 3)		December 31, 2018
Assets
Impaired loans	$	8,818	$	—	$	—	$	8,818	$	198
Other real estate held for sale		3,119		—		—		3,119		182
									$	380

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		Year 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