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FAIR VALUE (Tables)
 6 Months Ended
Jun. 30, 2015
FAIR VALUE [Abstract]  
Carrying Amounts and Estimated Fair Values of Financial Instruments
The carrying amounts and estimated fair values of financial instruments at June 30, 2015 were as follows:

    
Fair Value Measurements at June 30, 2015 Using
 
  
Carrying
Amount
  
Level 1
  
Level 2
  
Level 3
  
Total
 
Financial assets
          
Cash and due from banks
 
$
68,877
  
$
68,877
  
$
-
  
$
-
  
$
68,877
 
Federal funds sold
  
3,265
   
3,265
   
-
   
-
   
3,265
 
Securities available for sale
  
226,077
   
-
   
226,077
   
-
   
226,077
 
Loans, net
  
873,179
   
-
   
-
   
874,822
   
874,822
 
Federal Home Loan Bank stock
  
3,072
   
n/
a
  
n/
a
  
n/
a
  
n/
a
Interest receivable
  
3,271
   
-
   
584
   
2,687
   
3,271
 
                     
Financial liabilities
                    
Deposits
 
$
(1,070,531
)
 
$
(718,462
)
 
$
(350,961
)
 
$
-
  
$
(1,069,423
)
Securities sold under agreements to repurchase
  
(15,307
)
  
-
   
(15,307
)
  
-
   
(15,307
)
Other borrowed funds
  
(12,507
)
  
-
   
(12,539
)
  
-
   
(12,539
)
Interest payable
  
(387
)
  
(6
)
  
(381
)
  
-
   
(387
)
                     

The carrying amounts and estimated fair values of financial instruments at December 31, 2014 were as follows:

    
Fair Value Measurements at December 31, 2014 Using
 
  
Carrying
Amount
  
Level 1
  
Level 2
  
Level 3
  
Total
 
Financial assets
          
Cash and due from banks
 
$
70,398
  
$
70,398
  
$
-
  
$
-
  
$
70,398
 
Federal funds sold
  
4,986
   
4,986
   
-
   
-
   
4,986
 
Securities available for sale
  
229,750
   
-
   
229,610
   
140
   
229,750
 
Loans held for sale
  
226
   
-
   
-
   
226
   
226
 
Loans, net
  
869,364
   
-
   
-
   
870,273
   
870,273
 
Federal Home Loan Bank stock
  
2,996
   
n/
a
  
n/
a
  
n/
a
  
n/
a
Interest receivable
  
3,219
   
-
   
625
   
2,594
   
3,219
 
                     
Financial liabilities
                    
Deposits
 
$
(1,075,243
)
 
$
(711,118
)
 
$
(363,481
)
 
$
-
  
$
(1,074,599
)
Securities sold under agreements to repurchase
  
(15,580
)
  
-
   
(15,580
)
  
-
   
(15,580
)
Other borrowed funds
  
(11,722
)
  
-
   
(11,760
)
  
-
   
(11,760
)
Interest payable
  
(434
)
  
(6
)
  
(428
)
  
-
   
(434
)
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized below:

    
Fair Value Measurements at June 30, 2015 Using:
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Available for sale
        
Mortgage-backed securities
        
U. S. agency MBS - residential
 
$
76,416
  
$
-
  
$
76,416
  
$
-
 
U. S. agency CMO's - residential
  
124,877
   
-
   
124,877
   
-
 
Total mortgage-backed securities of government sponsored agencies
  
201,293
   
-
   
201,293
   
-
 
U. S. government sponsored agency securities
  
14,561
   
-
   
14,561
   
-
 
Obligations of states and political subdivisions
  
10,223
   
-
   
10,223
   
-
 
Total available for sale
 
$
226,077
  
$
-
  
$
226,077
  
$
-
 

    
Fair Value Measurements at December 31, 2014 Using:
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs
(Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Available for sale
        
Mortgage-backed securities
        
U. S. agency MBS - residential
 
$
52,780
  
$
-
  
$
52,780
  
$
-
 
U. S. agency CMO's
  
144,188
   
-
   
144,188
   
-
 
Total mortgage-backed securities of government sponsored agencies
  
196,968
   
-
   
196,968
   
-
 
U. S. government sponsored agency securities
  
22,506
   
-
   
22,506
   
-
 
Obligations of states and political subdivisions
  
10,276
   
-
   
10,136
   
140
 
Total securities available for sale
 
$
229,750
  
$
-
  
$
229,610
  
$
140
 
Mortgage-backed securities
                
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
 
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarter ended June 30, 2015:

  
Securities Available-for-sale
 
  
Quarter Ended
June 30, 2015
 
Balance of recurring Level 3 assets at beginning of period
 
$
140
 
Total gains or losses (realized/unrealized):
    
Included in earnings – realized
  
-
 
Included in earnings – unrealized
  
-
 
Included in other comprehensive income
  
-
 
Purchases, sales, issuances and settlements, net
  
(140
)
Transfers in and/or out of Level 3
  
-
 
Balance of recurring Level 3 assets at period-end
 
$
-
 
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis at June 30, 2015 are summarized below:

    
Fair Value Measurements at June 30, 2015 Using
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs
 (Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Assets:
        
Impaired loans:
        
Residential real estate
 
$
63
  
$
-
  
$
-
  
$
63
 
Commercial real estate:
                
Owner occupied
  
346
   
-
   
-
   
346
 
Non-owner occupied
  
589
   
-
   
-
   
589
 
Commercial and industrial
  
19
   
-
   
-
   
19
 
All other
  
4,249
   
-
   
-
   
4,249
 
Total impaired loans
 $ 
5,266
  
$
-
  
$
-
  
$
5,266
 
                 
Other real estate owned:
                
Residential real estate
 
$
657
  
$
-
  
$
-
  
$
657
 
Commercial real estate:
                
Owner occupied
  
39
   
-
   
-
   
39
 
Non-owner occupied
  
2,003
   
-
   
-
   
2,003
 
All other
  
6,984
   
-
   
-
   
6,984
 
Total OREO
 
$
9,683
  
$
-
  
$
-
  
$
9,683
 

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2014 are summarized below:

    
Fair Value Measurements at December 31, 2014 Using
 
  
Carrying Value
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Other Observable Inputs (Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Assets:
        
Impaired loans:
        
Commercial real estate:
        
Owner occupied
 
$ 
600
  $
-
  $ 
-
  $ 
600
 
Non-owner occupied
  
630
   
-
   
-
   
630
 
Commercial and industrial
  
341
   
-
   
-
   
341
 
All other
  
4,229
   
-
   
-
   
4,229
 
Total impaired loans
 
$ 
5,800
  
$
-
  
$
-
  
$
5,800
 
                 
Other real estate owned:
                
Commercial real estate:
                
Non-owner occupied
 
$
2,003
  $ 
-
  $ 
-
  $ 
2,003
 
All other
  
8,203
   
-
   
-
   
8,203
 
Total OREO
 
$
10,206
  
$
-
  
$
-
  
$
10,206
 
Fair Value Inputs, Assets, Quantitative Information
The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at June 30, 2015 are summarized below:

  
June 30, 2015
 
Valuation Techniques
Unobservable Inputs
Range (Weighted Avg)
Impaired loans:
     
Residential real estate
 
$
63
 
sales comparison
adjustment for differences between the comparable sales
 
26.5%-26.5% (26.5%)
Commercial real estate:
         
Owner occupied
  
346
 
sales comparison
adjustment for limited salability of specialized property
 
65.5%-72.4% (66.9%)
Non-owner occupied
  
589
 
sales comparison
adjustment for differences between the comparable sales
 
41.8%-41.8% (41.8%)
Commercial and industrial
  
19
 
sales comparison
adjustment for estimated realizable value
 
8.0%-8.0% (8.0%)
All other
  
4,249
 
sales comparison
adjustment for percentage of completion of construction
 
57.2%-57.2% (57.2%)
Total impaired loans
 
$
5,266
      
          
Other real estate owned:
         
Residential real estate
 
$
657
 
sales comparison
adjustment for differences between the comparable sales
 
0.7%-35.5% (25.0%)
Commercial real estate:
         
Owner occupied
  
39
 
sales comparison
adjustment for estimated realizable value
 
25.4%-25.4% (25.4%)
Non-owner occupied
  
2,003
 
sales comparison
adjustment for differences between the comparable sales
 
17.2%-17.2% (17.2%)
All other
  
6,984
 
sales comparison
adjustment for estimated realizable value
 
24.6%-67.4% (35.4%)
Total OREO
 
$
9,683
      
 
The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2014 are summarized below:

  
December 31, 2014
 
Valuation Techniques
Unobservable Inputs
 
Range (Weighted Avg)
Impaired loans:
      
Commercial Real Estate
      
Owner Occupied
 $
600
 
sales comparison
adjustment for limited salability of specialized property
 
44.8%-72.4% (58.9%)
Non-owner Occupied
  
630
 
sales comparison
adjustment for differences between the comparable sales
 
16.9%-54.6% (16.9%)
Commercial and Industrial
  
341
 
sales comparison
adjustment for limited salability of specialized property
 
26.2%-41.2% (27.0%)
All Other
  
4,229
 
sales comparison
adjustment for percentage of completion of construction
 
57.3%-57.3% (57.3%)
Total impaired loans
 $
5,800
      
          
Other real estate owned:
         
Commercial Real Estate
         
Non-owner Occupied
 
$
2,003
 
sales comparison
adjustment for differences between the comparable sales
 
17.8%-17.8% (17.8%)
All Other
  
8,203
 
sales comparison
adjustment for estimated realizable value
 
24.6%-50.3% (45.0%)
Total OREO
 
$
10,206