LOANS AND ASSET QUALITY (Tables)

3 Months Ended

Mar. 31, 2017

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans

At March 31, 2017					90 Days or
(Dollars in Thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Commercial and industrial	$	4,422	$	-	$	-	$	-	$	4,422
Commercial real estate		65,202		-		-		647		65,849
Consumer and indirect		90,916		639		-		434		91,989
Residential real estate		105,431		324		35		2,691		108,481
	$	265,971	$	963	$	35	$	3,772	$	270,741

At December 31, 2016					90 Days or
(Dollars in Thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Commercial and industrial	$	4,679	$	-	$	-	$	-	$	4,679
Commercial real estate		68,775		-		-		647		69,422
Consumer and indirect		82,134		992		-		456		83,582
Residential real estate		103,941		1,798		36		2,648		108,423
	$	259,529	$	2,790	$	36	$	3,751	$	266,106

Schedule of allowance for loan loss and the unearned income on loans

	At			At
	March 31,			December 31,
	2017			2016
	(Dollars in Thousands)
Troubled debt restructured loans	$	307		$	312
Non-accrual and 90 days or more and still accruing loans to gross loans		1.41	%		1.43	%
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans		68.35	%		65.59	%

Schedule of impaired financing receivables

(Dollars in thousands)
March 31, 2017	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized		Specific Reserve		Average Recorded Investment
Impaired loans with specific reserves:
Real-estate - mortgage:
Residential	$	1,392		1,421		-		252		1,428
Commercial		-		-		-		-		-
Consumer		124		124		-		45		164
Installment		-		-		-		-		-
Home Equity		-		-		-		-		-
Commercial		225		225		3		225		227
Total impaired loans with specific reserves	$	1,741		1,770		3		522		1,819
Impaired loans with no specific reserve:
Real-estate - mortgage:
Residential	$	1,512		2,252		4		n/a		2,528
Commercial		1,392		1,544		9		n/a		1,570
Consumer		178		178		-		n/a		217
Installment		179		179		-		n/a		179
Home Equity		-		-		-		n/a		-
Commercial		2		2		-		n/a		2
Total impaired loans with no specific reserve	$	3,263		4,155		13		-		4,496

(Dollars in thousands)
December 31, 2016	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized		Specific Reserve		Average Recorded Investment
Impaired loans with specific reserves:
Real-estate - mortgage:
Residential	$	1,393		1,422		58		252		1,442
Commercial		-		-		-		-		-
Consumer		128		128		-		50		167
Installment		-		-		-		-		-
Home Equity		-		-		-		-		-
Commercial		229		229		8		228		235
Total impaired loans with specific reserves	$	1,750		1,779		66		530		1,844
Impaired loans with no specific reserve:
Real-estate - mortgage:
Residential	$	1,479		2,219		21		n/a		2,463
Commercial		1,413		1,565		59		n/a		1,594
Consumer		182		182		-		n/a		75
Installment		193		193		-		n/a		-
Home Equity		-		-		-		n/a		-
Commercial		-		-		-		n/a		-
Total impaired loans with no specific reserve	$	3,267		4,159		80		-		4,132

Schedule of total allowance by loan segment

	Commercial					Consumer
March 31, 2017	and			Commercial		and			Residential
(Dollars in Thousands)	Industrial			Real Estate		Indirect			Real Estate			Unallocated			Total
Balance, beginning of year	$	284		$	259	$	876		$	1,051		$	14		$	2,484
Provision for credit losses		(10	)		105		196			(80	)		(16	)		195
Recoveries		-			-		67			26			-			93
Loans charged off		-			-		(167	)		(3	)		-			(170	)
Balance, end of quarter	$	274		$	364	$	972		$	994		$	(2	)	$	2,602
Individually evaluated for impairment:
Balance in allowance	$	225		$	-	$	45		$	252		$	-		$	522
Related loan balance		225			1,392		323			2,808			-			4,748
Collectively evaluated for impairment:
Balance in allowance	$	49		$	364	$	927		$	742		$	(2	)	$	2,080
Related loan balance		4,197			64,457		91,666			105,673			-			265,993

	Commercial						Consumer
December 31, 2016	and			Commercial			and			Residential
(Dollars in Thousands)	Industrial			Real Estate			Indirect			Real Estate			Unallocated			Total
Balance, beginning of year	$	305		$	262		$	804		$	1,631		$	148		$	3,150
Provision for credit losses		(30	)		361			431			240			(134	)		868
Recoveries		9			-			336			34			-			379
Loans charged off		-			(364	)		(695	)		(854	)		-			(1,913	)
Balance, end of year	$	284		$	259		$	876		$	1,051		$	14		$	2,484
Individually evaluated for impairment:
Balance in allowance	$	229		$	-		$	50		$	251		$	-		$	530
Related loan balance		229			1,413			503			2,872			-			5,017
Collectively evaluated for impairment:
Balance in allowance	$	56		$	259		$	826		$	799		$	14		$	1,954
Related loan balance		4,451			68,009			83,078			105,552			-			261,090

Schedule of non accrual loans

(Dollars in thousands)	Commercial &		Commercial			Consumer &			Residential
	Industrial		Real Estate			Indirect			Real Estate			Total
December 31,2016	$	-	$	647		$	456		$	2,648		$	3,751
Transfer into non-accrual		-		-			233			84			317
Transfer to REO		-		-			-			-			-
Loans paid down/payoffs		-		-			(54	)		(38	)		(92	)
Loans brought to accrual status		-		-			(34	)		-			(34	)
Loans charged off		-		-			(167	)		(3	)		(170	)
March 31, 2017	$	-	$	647		$	434		$	2,691		$	3,772
December 31,2015	$	-	$	300		$	596		$	2,883		$	3,780
Transfer into non-accrual		-		-			280			95			375
Transfer to REO		-		-			-			(126	)		(126	)
Loans paid down/payoffs		-		(2	)		(236	)		(44	)		(282	)
Loans brought to accrual status		-		-			(25	)		(135	)		(160	)
Loans charged off		-		-			(163	)		(864	)		(1,027	)
March 31, 2016	$	-	$	298		$	452		$	1,809		$	2,560

Schedule of risk ratings of loans by categories of loans

	Commercial				Consumer
March 31, 2017	and		Commercial		and		Residential
(Dollars in Thousands)	Industrial		Real Estate		Indirect		Real Estate		Total
Pass	$	4,123	$	60,485	$	91,615	$	105,469	$	261,692
Special mention		74		3,764		73		505		4,416
Substandard		225		1,600		267		2,336		4,428
Doubtful		-		-		34		171		205
Loss		-		-		-		-		-
	$	4,422	$	65,849	$	91,989	$	108,481	$	270,741
Non-accrual		-		647		434		2,691		3,772
Troubled debt restructures		225		-		34		48		307
Number of TDRs accounts		1		-		1		1		3
Non-performing TDRs	$	-	$	-	$	34	$	48	$	82
Non-performing TDRs accounts		-		-		1		1		2

	Commercial				Consumer
December 31, 2016	and		Commercial		and		Residential
(Dollars in Thousands)	Industrial		Real Estate		Indirect		Real Estate		Total
Pass	$	4,357	$	64,208	$	82,942	$	105,226	$	256,733
Special mention		94		3,801		276		527		4,698
Substandard		228		1,413		327		2,493		4,461
Doubtful		-		-		36		178		214
Loss		-		-		-		-		-
	$	4,679	$	69,422	$	83,581	$	108,424	$	266,106
Non-accrual		-		647		456		2,648		3,751
Troubled debt restructures		228		-		36		48		312
Number of TDRs accounts		1		-		1		1		3
Non-performing TDRs	$	-	$	-	$	36	$	48	$	84
Non-performing TDRs accounts		-		-		1		1		2