20. FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Measurements Tables

Fair value on a recurring basis

The following tables present the balances of financial assets measured at fair value on a recurring basis as of December 31, 2016, and 2015 (dollars in thousands):

December 31, 2016	Total		Level 1		Level 2		Level 3
U. S. Treasuries	$	24,014	$	-	$	24,014	$	-
Mortgage-backed obligations of federal agencies		634		-		634		-
Equity securities		135		-		135		-
Total securities available for sale	$	24,783		-	$	24,783		-

December 31, 2015	Total		Level 1		Level 2		Level 3
U. S. Treasuries	$	4,021	$	-	$	4,021	$	-
U. S. Government sponsored enterprises		8,074		-		8,074		-
Mortgage-backed obligations of federal agencies		817		-		817		-
Equity securities		135		-		135		-
Total securities available for sale	$	13,047		-	$	13,047		-

Financial Assets Mmeasured at Fair Value On Nnonrecurring Basis

The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis during the period (dollars in thousands).

December 31, 2016	Total		Level 1		Level 2		Level 3
Construction/Land Development	$	4,739		-		-	$	4,739
Real Estate		985		-		-		985
Commercial Real Estate		892		-		-		892
Dealer Finance		67		-		-		67
Impaired loans	$	6,683		-		-	$	6,683

December 31, 2015	Total		Level 1		Level 2		Level 3
Construction/Land Development	$	9,161		-		-	$	9,161
Real Estate		86		-		-		86
Commercial Real Estate		872		-		-		872
Home Equity – open end		1,145		-		-		1,145
Dealer Finance		51		-		-		51
Impaired loans	$	11,315		-		-	$	11,315

The following table summarizes the Company’s other real estate owned that were measured at fair value on a nonrecurring basis during the period.

December 31, 2016	Total		Level 1		Level 2		Level 3
Other real estate owned	$	2,076		-		-	$	2,076

December 31, 2015	Total		Level 1		Level 2		Level 3
Other real estate owned	$	2,128		-		-	$	2,128

Fair Value Measurements

The following table presents information about Level 3 Fair Value Measurements for December 31, 2016:

	Fair Value at December 31, 2016		Valuation Technique	Significant Unobservable Inputs	Range
Impaired Loans	$	6,683	Discounted appraised value	Discount for selling costs and marketability	2%-50% (Average 4.7%)

The following table presents information about Level 3 Fair Value Measurements for December 31, 2016:

	Fair Value at December 31, 2016		Valuation Technique	Significant Unobservable Inputs	Range
Other real estate owned	$	2,076	Discounted appraised value	Discount for selling costs	5%-15% (Average 8%)

Carrying Value and Estimated Fair Value for Financial Instruments

The estimated fair values, and related carrying amounts (in thousands), of the Company’s financial instruments are as follows:

			Fair Value Measurements at December 31, 2016 Using
(dollars in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at December 31, 2016
Assets:
Cash and cash equivalents	$	16,355	$	16,355	$	-	$	-	$	16,355
Securities		24,908		-		24,908		-		24,908
Loans held for sale		62,735		-		62,735		-		62,735
Loans held for investment, net		584,093		-		-		598,991		598,991
Interest receivable		1,785		-		1,785		-		1,785
Bank owned life insurance		13,513		-		13,513		-		13,513
Total	$	703,389	$	16,355	$	102,941	$	598,991	$	718,287
Liabilities:
Deposits	$	537,085	$	-	$	379,857	$	158,073	$	537,930
Short-term debt		40,000		-		40,000		-		40,000
Long-term debt		64,237		-		-		63,945		63,945
Interest payable		228		-		228		-		228
Total	$	641,550	$	-	$	420,085	$	222,018	$	642,103

			Fair Value Measurements at December 31, 2015 Using
(dollars in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at December 31, 2016
Assets:
Cash and cash equivalents	$	8,519	$	8,519	$	-	$	-	$	8,519
Securities		13,172		-		13,172		-		13,172
Loans held for sale		57,806		-		57,806		-		57,806
Loans held for investment, net		535,272		-		-		546,792		546,792
Interest receivable		1,709		-		1,709		-		1,709
Bank owned life insurance		13,046		-		13,046		-		13,046
Total	$	629,524	$	8,519	$	85,733	$	546,792	$	641,044
Liabilities:
Deposits	$	494,670	$	-	$	333,630	$	162,524	$	496,154
Short-term debt		24,954		-		24,954		-		24,954
Long-term debt		48,161		-		-		48,565		48,565
Interest payable		203		-		203		-		203
Total	$	567,988	$	-	$	358,787	$	210,685	$	569,472