FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

At December 31, 2016 and 2015, investments measured at fair value on a recurring basis and the valuation methods used are as follows:

(Dollars in thousands)

December 31, 2016	Level 1		Level 2		Level 3		Total
Available-for-Sale Securities:
U.S. Treasury securities	$	—	$	1,010	$	—	$	1,010
Obligations of U.S. Government Corporations and Agencies:
Mortgaged-backed		—		110,907		—		110,907
Other		—		20,970		—		20,970
Obligations of state and political subdivisions		—		211,134		—		211,134
Corporate debt securities		—		33,976		—		33,976
Marketable equity securities		1,640		—		—		1,640
Total	$	1,640	$	377,997	$	—	$	379,637

(Dollars in thousands)

December 31, 2015	Level 1		Level 2		Level 3		Total
Available-for-Sale Securities:
U.S. Treasury securities	$	—	$	1,021	$	—	$	1,021
Obligations of U.S. Government Corporations and Agencies:
Mortgaged-backed		—		112,474		—		112,474
Other		—		21,592		—		21,592
Obligations of state and political subdivisions		—		200,314		—		200,314
Corporate debt securities		—		47,833		—		47,833
Marketable equity securities		2,007		—		—		2,007
Total	$	2,007	$	383,234	$	—	$	385,241

Fair Value Measurements, Nonrecurring [Table Text Block]

At December 31, 2016 and 2015, impaired loans measured at fair value on a nonrecurring basis and the valuation methods used are as follows:

(Dollars in thousands)
	Level 1		Level 2		Level 3		Total
Assets at December 31, 2016
Impaired loans:
Commercial Real Estate	$	—	$	—	$	4,763	$	4,763
Residential Real Estate		—		—		524		524
Total impaired loans	$	—	$	—	$	5,287	$	5,287

(Dollars in thousands)
	Level 1		Level 2		Level 3		Total
Assets at December 31, 2015
Impaired loans:
Commercial Real Estate	$	—	$	—	$	1,665	$	1,665
Residential Real Estate		—		—		631		631
Total impaired loans	$	—	$	—	$	2,296	$	2,296

Fair Value Non Financial Assets Measured On Nonrecurring Basis [Table Text Block]

At December 31, 2016, foreclosed assets held for resale measured at fair value on a nonrecurring basis and the valuation methods used are as follows:

(Dollars in thousands)
	Level 1		Level 2		Level 3		Total
Assets at December 31, 2016
Other foreclosed assets held for resale:
Commercial Real Estate	$	—	$	—	$	248	$	248
Total foreclosed assets held for resale	$	—	$	—	$	248	$	248

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to determine the fair value:

(Dollars in thousands)


	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value						Weighted
	Estimate		Valuation Technique	Unobservable Input	Range		Average
December 31, 2016
Impaired loans	$	2,119	Appraisal of collateral^1,3	Appraisal adjustments²		(10%) – (79%)		(21)	%
Impaired loans	$	3,168	Discounted cash flow	Discount rate		(7%) – (7%)		(7)	%
Foreclosed assets held for sale	$	248	Appraisal of collateral^1,3	Appraisal adjustments²		(23%) – (37%)		(32)	%

December 31, 2015
Impaired loans	$	2,296	Appraisal of collateral^1,3	Appraisal adjustments²		(10%) – (63%)		(29)	%
Impaired loans	$	—	Discounted cash flow	Discount rate		(0%) – (0%)		(0)	%
Foreclosed assets held for sale	$	—	Appraisal of collateral^1,3	Appraisal adjustments²		(0%) – (0%)		(0)	%

______________________

¹Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators.

²Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

³Includes qualitative adjustments by management and estimated liquidation expenses.

Fair Value, by Balance Sheet Grouping [Table Text Block]

(Dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2016
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	8,338	$	8,338	$	—	$	—	$	8,338
Interest-bearing deposits in other banks		790		—		790		—		790
Time deposits with other banks		1,482		—		1,482		—		1,482
Investment securities available-for-sale		379,637		1,640		377,997		—		379,637
Investment securities held-to-maturity		4		—		4		—		4
Restricted investment in bank stocks		5,477		—		5,477		—		5,477
Net loans		515,025		—		—		504,206		504,206
Mortgage servicing rights		431		—		—		431		431
Accrued interest receivable		3,917		—		3,917		—		3,917

FINANCIAL LIABILITIES:
Deposits		725,982		—		725,473		—		725,473
Short-term borrowings		69,290		—		69,290		—		69,290
Long-term borrowings		75,116		—		75,718		—		75,718
Accrued interest payable		427		—		427		—		427

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS		—		—		—		—		—

(Dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2015
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	7,474	$	7,474	$	—	$	—	$	7,474
Interest-bearing deposits in other banks		1,534		—		1,534		—		1,534
Time deposits with other banks		1,482		—		1,482		—		1,482
Investment securities available-for-sale		385,241		2,007		383,234		—		385,241
Investment securities held-to-maturity		26		—		27		—		27
Restricted investment in bank stocks		5,742		—		5,742		—		5,742
Net loans		509,871		—		—		498,671		498,671
Mortgage servicing rights		493		—		—		493		493
Accrued interest receivable		4,086		—		4,086		—		4,086

FINANCIAL LIABILITIES:
Deposits		720,598		—		720,341		—		720,341
Short-term borrowings		80,539		—		80,539		—		80,539
Long-term borrowings		70,232		—		71,302		—		71,302
Accrued interest payable		382		—		382		—		382

OFF-BALANCE SHEET FINANCIAL INSTRUMENTS		—		—		—		—		—