FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

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

At September 30, 2018 and December 31, 2017, securities measured at fair value on a recurring basis and the valuation methods used are as follows:

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2018
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	—	$	5,271	$	—	$	5,271
Obligations of U.S. Government Corporations and Agencies:
Mortgage-backed		—		66,164		—		66,164
Other		—		19,176		—		19,176
Obligations of state and political subdivisions		—		190,836		—		190,836
Asset backed securities		—		14,563		—		14,563
Corporate debt securities		—		27,576		—		27,576
Total debt securities available-for-sale		—		323,586		—		323,586
Marketable equity securities		1,684		—		—		1,684
Total recurring fair value measurements	$	1,684	$	323,586	$	—	$	325,270

 

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
December 31, 2017
Debt Securities Available-for-Sale:
U.S. Treasury securities	$	—	$	—	$	—	$	—
Obligations of U.S. Government Corporations and Agencies:
Mortgaged-backed		—		81,860		—		81,860
Other		—		22,233		—		22,233
Obligations of state and political subdivisions		—		215,522		—		215,522
Asset backed securities		—		—		—		—
Corporate debt securities		—		28,971		—		28,971
Total debt securities available-for-sale		—		348,586		—		348,586
Marketable equity securities		1,632		—		—		1,632
Total recurring fair value measurements	$	1,632	$	348,586	$	—	$	350,218

Fair Value Measurements, Nonrecurring [Table Text Block]

At September 30, 2018 and December 31, 2017, 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 September 30, 2018
Impaired loans:
Commercial Real Estate	$	―	$	―	$	5,215	$	5,215
Residential Real Estate		―		―		378		378
Total impaired loans	$	―	$	―	$	5,593	$	5,593

 

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at December 31, 2017
Impaired loans:
Commercial Real Estate	$	—	$	—	$	5,498	$	5,498
Residential Real Estate		—		—		254		254
Total impaired loans	$	—	$	—	$	5,752	$	5,752

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

At September 30, 2018 and December 31, 2017, 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 September 30, 2018
Foreclosed assets held for resale:
Commercial Real Estate	$	―	$	―	$	856	$	856
Residential Real Estate		—		—		—		—
Total foreclosed assets held for resale	$	―	$	―	$	856	$	856

 

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets at December 31, 2017
Foreclosed assets held for resale:
Commercial Real Estate	$	—	$	—	$	81	$	81
Residential Real Estate		—		—		13		13
Total foreclosed assets held for resale	$	—	$	—	$	94	$	94

Fair Value Measurement Inputs and Valuation Techniques [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:

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value					Weighted
(Dollars in thousands)	Estimate		Valuation Technique	Unobservable Input	Range	Average
September 30, 2018
Impaired loans	$	2,443	Appraisal of collateral1,3	Appraisal adjustments2	(0%) – (82%)		(17%	)
Impaired loans	$	3,150	Discounted cash flow	Discount rate	(6%) – (7%)		(7%	)
Foreclosed assets held for resale	$	856	Appraisal of collateral1,3	Appraisal adjustments2	(16%) – (35%)		(18%	)
December 31, 2017
Impaired loans	$	2,495	Appraisal of collateral1,3	Appraisal adjustments2	(7%) – (65%)		(15%	)
Impaired loans	$	3,257	Discounted cash flow	Discount rate	(7%) – (8%)		(7%	)
Foreclosed assets held for sale	$	94	Appraisal of collateral1,3	Appraisal adjustments2	(35%) – (37%)		(36%	)

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]

Fair Value of Financial Instruments

	Carrying		Fair Value Measurements at September 30, 2018
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	9,820	$	9,820	$	―	$	―	$	9,820
Interest-bearing deposits in other banks		3,148		—		3,148		—		3,148
Time deposits with other banks		1,482		—		1,469		—		1,469
Debt securities available-for-sale		323,586		—		323,586		—		323,586
Marketable equity securities		1,684		1,684		—		—		1,684
Restricted investment in bank stocks		8,561		—		8,561		—		8,561
Net loans		590,849		—		—		582,459		582,459
Mortgage servicing rights		329		—		—		329		329
Accrued interest receivable		3,919		—		3,919		—		3,919
FINANCIAL LIABILITIES:
Core deposits		504,098		—		504,098		—		504,098
Time deposits		196,581		—		193,304		—		193,304
Short-term borrowings		151,281		—		151,402		—		151,402
Long-term borrowings		45,000		—		44,739		—		44,739
Accrued interest payable		740		—		740		—		740
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS		―		―		―		―		―

 

	Carrying		Fair Value Measurements at December 31, 2017
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS:
Cash and due from banks	$	7,913	$	7,913	$	—	$	—	$	7,913
Interest-bearing deposits in other banks		826		—		826		—		826
Time deposits with other banks		1,482		—		1,482		—		1,482
Debt securities available-for-sale		348,586		—		348,586		—		348,586
Marketable equity securities		1,632		1,632		—		—		1,632
Restricted investment in bank stocks		4,058		—		4,058		—		4,058
Net loans		551,910		—		—		550,696		550,696
Mortgage servicing rights		379		—		—		379		379
Accrued interest receivable		4,237		—		4,237		—		4,237
FINANCIAL LIABILITIES:
Core deposits		570,518		—		570,518		—		570,518
Time deposits		207,628		—		206,299		—		206,299
Short-term borrowings		26,296		—		26,296		—		26,296
Long-term borrowings		65,000		—		65,336		—		65,336
Accrued interest payable		490		—		490		—		490
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS		—		—		—		—		—