FAIR VALUE MEASUREMENTS (Table)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets measured at fair value on a recurring basis at December 31, 2017 and 2016. No assets were transferred from one hierarchy level to another during 2017or 2016.


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2017
Securities available for sale:
U.S. Government agencies	$	45,332	$	-	$	45,332	$	-
Mortgage-backed		150,965		-		150,965		-
Equity		658		-		658		-
Total	$	196,955	$	-	$	196,955	$	-

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2016
Securities available for sale:
U.S. Government agencies	$	34,318	$	-	$	34,318	$	-
Mortgage-backed		128,944		-		128,944		-
Equity		640		-		640		-
Total	$	163,902	$	-	$	163,902	$	-

Fair Value of Assets Measured on Nonrecurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments (impairment) on a nonrecurring basis at December 31, 2017 and 2016, that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assets in the following table were transferred during 2016 from Level 2 to Level 3, based on management’s reassessment an evaluation of the inputs in relation to impaired loans and foreclosed assets. This reassessment resulted in management’s conclusion that the inputs for these assets were more reflective of Level 3 as unobservable inputs and applied retrospectively to prior periods reported.


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique			Unobservable Input			Range
December 31, 2017
Nonrecurring measurements:

Impaired loans	$	510		Appraisal of collateral	1		Liquidation expense	2		10%

Impaired loans	$	6,005		Discounted cash flow analysis	1		Discount rate			4% - 8.5%

Other real estate owned	$	1,794		Appraisal of collateral	1		Appraisal adjustments	2		20% - 30%
							Liquidation expense	2		5% - 10%


	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique			Unobservable Input			Range
December 31, 2016
Nonrecurring measurements:

Impaired loans	$	8,935		Appraisal of collateral	1		Appraisal adjustments	2		20% - 30%
							Liquidation expense	2		5% - 10%

Other real estate owned	$	2,477		Appraisal of collateral	1		Appraisal adjustments	2		20% - 30%
							Liquidation expense	2		5% - 10%

Schedule of Estimated Fair Values of Financial Assets and Liabilities

The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported in the balance sheets at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy.


	December 31, 2017				December 31, 2016
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 1 inputs
Cash and cash equivalents	$	31,820	$	31,820	$	75,938	$	75,938

Level 2 inputs
Investment securities held to maturity	$	6,247	$	6,391	$	6,808	$	6,806
Restricted securities		3,735		3,735		1,650		1,650
Bank owned life insurance		3,637		3,637		3,552		3,552

Level 3 inputs
Loans, net		1,083,733		1,072,951		862,799		867,594

Financial liabilities
Level 2 inputs
Deposits:
Noninterest-bearing demand	$	328,322	$	328,322	$	261,575	$	261,575
Checking plus interest		231,898		231,898		203,724		203,724
Money market		223,123		223,123		181,871		181,871
Savings		156,623		156,623		90,051		90,051
Club		398		398		393		393
Certificates of deposit, $100,000 or more		107,343		105,691		120,602		119,914
Other time		155,074		151,339		139,273		135,940
Short-term borrowings		21,734		21,734		3,203		3,203