DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2018

Disclosures About Fair Value Of Financial Instruments [Abstract]

Financial Instruments Disclosure [Text Block]

15.  DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure.

Fair values have been determined by the Company using independent third party valuations that use the best available data (Level 2) and an estimation methodology (Level 3) the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, deposits with no stated maturities, and short term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements. The estimation methodologies used, the fair values based on US GAAP measurements, and recorded carrying values at  December 31, 2018 and 2017, for the remaining financial instruments not recorded at fair value on a recurring basis were as follows:

	AT DECEMBER 31, 2018
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(IN THOUSANDS)
FINANCIAL ASSETS:
Investment securities – HTM		40,760		40,324		—		37,398		2,926
Loans held for sale		847		871		871		—		—
Loans, net of allowance for loan loss and unearned income		853,611		836,122		—		—		836,122
FINANCIAL LIABILITIES:
Deposits with stated maturities		277,505		277,010		—		—		277,010
All other borrowings		67,148		69,692		—		—		69,692

	AT DECEMBER 31, 2017
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
	(IN THOUSANDS)
FINANCIAL ASSETS:
Investment securities – HTM		38,752		38,811		—		35,859		2,952
Loans held for sale		3,125		3,173		3,173		—		—
Loans, net of allowance for loan loss and unearned income		879,419		873,784		—		—		873,784
FINANCIAL LIABILITIES:
Deposits with stated maturities		259,297		260,153		—		—		260,153
All other borrowings		66,617		69,684		—		—		69,684

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting.