10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

Amendment No. 1

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 000-20908

PREMIER FINANCIAL BANCORP, INC.

(Exact name of registrant as specified in its charter)

Kentucky	61-1206757
(State or other jurisdiction of incorporation organization)	(I.R.S. Employer Identification No.)
2883 Fifth Avenue Huntington, West Virginia	25702
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number    (304) 525-1600

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.  Yes ☑     No ☐.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§230.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑   No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer ☐		Accelerated filer  ☑
Non-accelerated filer  ☐ (Do not check if smaller reporting company)	Smaller reporting company  ☐	Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act).  Yes☐     No ☑.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Common stock, no par value, – 13,368,975 shares outstanding at August 3, 2018

EXPLANATORY NOTE

This Amendment No. 1 to the Quarterly Report on Form 10-Q/A for the quarterly period ending June 30, 2018 is being filed solely to correct a typographical error on the cover page and to reflect the correct number of shares outstanding at August 3, 2018.

Other than the aforementioned, no other changes have been made to the Form 10-Q as originally filed on August 9, 2018.  This Amendment to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Item 3.          Exhibits

 (a)          The following exhibits are furnished in accordance with the provisions of Item 601 of Regulation S-K.

31.1        Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2      Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32          Certification Pursuant to 18 U.S.C §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Corporation has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PREMIER FINANCIAL BANCORP, INC.

Date: September 12, 2018                                     /s/ Robert W. Walker                                 

Robert W. Walker

President & Chief Executive Officer

Date: September 12, 2018                                     /s/ Brien M. Chase                                     

Brien M. Chase

Senior Vice President & Chief Financial Officer

EX-31.1

Exhibit 31.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Robert W. Walker, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Premier Financial Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and;

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 12, 2018

/s/ Robert W. Walker                                         

Robert W. Walker

President & Chief Executive Officer

EX-31.2

Exhibit 31.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Brien M. Chase, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Premier Financial Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and;

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 12, 2018

/s/ Brien M. Chase                                        

Brien M. Chase

Senior Vice President & Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Premier Financial Bancorp, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Robert W. Walker and Brien M. Chase, Chief Executive Officer and Chief Financial Officer, respectively, of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

· The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

· The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By: /s/ Robert W. Walker               

Robert W. Walker

President and Chief Executive Officer

By: /s/ Brien M. Chase                     

Brien M. Chase

Senior Vice President and Chief Financial Officer

Date: September 12, 2018

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	PREMIER FINANCIAL BANCORP INC
Entity Central Index Key	0000887919
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,368,975
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	true
Amendment Description	This Amendment No. 1 to the Quarterly Report on Form 10-Q/A for the quarterly period ending June 30, 2018 is being filed solely to correct a typographical error on the cover page and to reflect the correct number of shares outstanding at August 3, 2018.
Document Period End Date	Jun. 30, 2018

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 22,728	$ 40,814
Interest bearing bank balances	85,708	37,191
Federal funds sold	3,092	4,658
Cash and cash equivalents	111,528	82,663
Time deposits with other banks	2,582	2,582
Securities available for sale	297,692	278,466
Loans	1,027,653	1,049,052
Allowance for loan losses	(12,982)	(12,104)
Net loans	1,014,671	1,036,948
Federal Home Loan Bank stock, at cost	3,173	3,185
Premises and equipment, net	25,294	23,815
Real estate acquired through foreclosure	14,194	19,966
Interest receivable	3,764	4,043
Goodwill	35,371	35,371
Other intangible assets	2,990	3,375
Other assets	3,041	3,010
Total assets	1,514,300	1,493,424
Deposits
Non-interest bearing	358,370	332,588
Time deposits, $250,000 and over	62,452	63,905
Other interest bearing	873,334	876,182
Total deposits	1,294,156	1,272,675
Securities sold under agreements to repurchase	21,865	23,310
Other borrowed funds	3,800	5,000
Subordinated debt	5,391	5,376
Interest payable	462	393
Other liabilities	3,021	3,315
Total liabilities	1,328,695	1,310,069
Stockholders' equity
Common stock, no par value; 20,000,000 shares authorized; 13,362,796 shares issued and outstanding at June 30, 2018, and 13,345,535 shares issued and outstanding at December 31, 2017	110,727	110,445
Retained earnings	80,872	74,983
Accumulated other comprehensive income (loss)	(5,994)	(2,073)
Total stockholders' equity	185,605	183,355
Total liabilities and stockholders' equity	$ 1,514,300	$ 1,493,424

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical)	Jun. 30, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares
Stockholders' equity
Common stock, par value (in dollars per share) | $ / shares	$ 0	$ 0
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	13,362,796	13,345,535
Common stock, shares outstanding (in shares)	13,362,796	13,345,535

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income
Loans, including fees	$ 13,684	$ 14,663	$ 27,718	$ 28,198
Securities available for sale
Taxable	1,634	1,464	3,042	2,809
Tax-exempt	55	64	114	136
Federal funds sold and other	380	182	678	339
Total interest income	15,753	16,373	31,552	31,482
Interest expense
Deposits	1,197	951	2,228	1,900
Repurchase agreements and other	7	7	15	14
Other borrowings	41	79	88	166
Subordinated debt	89	74	167	144
Total interest expense	1,334	1,111	2,498	2,224
Net interest income	14,419	15,262	29,054	29,258
Provision for loan losses	500	776	1,615	1,142
Net interest income after provision for loan losses	13,919	14,486	27,439	28,116
Non-interest income
Service charges on deposit accounts	1,066	1,089	2,160	2,065
Electronic banking income	892	833	1,709	1,613
Secondary market mortgage income	81	39	113	106
Other	192	173	315	367
Total non-interest income	2,231	2,134	4,297	4,151
Non-interest expenses
Salaries and employee benefits	5,043	4,973	9,821	9,943
Occupancy and equipment expenses	1,480	1,449	3,090	2,970
Outside data processing	1,277	1,355	2,526	2,675
Professional fees	399	277	735	525
Taxes, other than payroll, property and income	212	211	452	400
Write-downs, expenses, sales of other real estate owned, net	525	553	(361)	793
Amortization of intangibles	190	251	385	516
FDIC insurance	124	154	272	347
Other expenses	1,208	1,181	2,527	2,233
Total non-interest expenses	10,458	10,404	19,447	20,402
Income before income taxes	5,692	6,216	12,289	11,865
Provision for income taxes	1,317	2,297	2,781	4,282
Net income	$ 4,375	$ 3,919	$ 9,508	$ 7,583
Net income per share:
Basic (in dollars per share)	$ 0.33	$ 0.29	$ 0.71	$ 0.57
Diluted (in dollars per share)	$ 0.32	$ 0.29	$ 0.71	$ 0.57

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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical)	Jun. 08, 2018
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) [Abstract]
Stock split ratio	1.25

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) [Abstract]
Net income	$ 4,375	$ 3,919	$ 9,508	$ 7,583
Other comprehensive income (loss):
Unrealized gains (losses) arising during the period	(1,101)	1,451	(4,963)	3,725
Reclassification of realized amount	0	0	0	0
Net change in unrealized gain (loss) on securities	(1,101)	1,451	(4,963)	3,725
Less tax impact	231	(508)	1,042	(1,304)
Other comprehensive income (loss)	(870)	943	(3,921)	2,421
Comprehensive income	$ 3,505	$ 4,862	$ 5,587	$ 10,004

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balances at Dec. 31, 2017	$ 110,445	$ 74,983	$ (2,073)	$ 183,355
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	9,508	0	9,508
Other comprehensive income (loss)	0	0	(3,921)	(3,921)
Cash dividends paid ($0.27 per share)	0	(3,606)	0	(3,606)
Cash in lieu of fractional share for 5 for 4 stock split	0	(13)	0	(13)
Stock options exercised	101	0	0	101
Stock based compensation expense	181	0	0	181
Balances at Jun. 30, 2018	$ 110,727	$ 80,872	$ (5,994)	$ 185,605

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical)	6 Months Ended
	Jun. 30, 2018 $ / shares
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) [Abstract]
Cash dividends paid (in dollars per share)	$ 0.27

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income	$ 9,508	$ 7,583
Adjustments to reconcile net income to net cash from operating activities
Depreciation	831	879
Provision for loan losses	1,615	1,142
Amortization (accretion), net	668	616
Writedowns (gains on the sale) of other real estate owned, net	(920)	349
Stock compensation expense	181	169
Changes in:
Interest receivable	279	225
Other assets	1,011	294
Interest payable	69	(12)
Other liabilities	(294)	(591)
Net cash from operating activities	12,948	10,654
Cash flows from investing activities
Net change on time deposits with other banks	0	(250)
Purchases of securities available for sale	(57,530)	(43,190)
Proceeds from maturities and calls of securities available for sale	32,574	33,291
Redemption of FHLB stock	12	15
Net change in loans	20,599	(13,077)
Purchases of premises and equipment, net	(2,310)	(305)
Proceeds from sales of other real estate acquired through foreclosure	7,266	1,462
Net cash from (used in) investing activities	611	(22,054)
Cash flows from financing activities
Net change in deposits	21,469	(2,190)
Net change in agreements to repurchase securities	(1,445)	(3,342)
Repayment of other borrowed funds	(1,200)	(1,859)
Proceeds from stock option exercises	101	138
Common stock dividends paid	(3,619)	(3,197)
Net cash from financing activities	15,306	(10,450)
Net change in cash and cash equivalents	28,865	(21,850)
Cash and cash equivalents at beginning of period	82,663	104,718
Cash and cash equivalents at end of period	111,528	82,868
Supplemental disclosures of cash flow information:
Cash paid during period for interest	2,429	2,236
Cash paid during period for income taxes	1,545	3,632
Loans transferred to real estate acquired through foreclosure	574	600
Premises transferred to other real estate owned	$ 0	$ 71

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2018

BASIS OF PRESENTATION [Abstract]

BASIS OF PRESENTATION

NOTE  1 - BASIS OF PRESENTATION

The consolidated financial statements include the accounts of Premier Financial Bancorp, Inc. (the Company) and its wholly owned subsidiaries (the “Banks”):

					June 30, 2018
		Year	Total		Net Income
Subsidiary	Location	Acquired	Assets		Qtr			YTD
Citizens Deposit Bank & Trust	Vanceburg, Kentucky	1991	$	429,714	$	1,394		$	2,684
Premier Bank, Inc.	Huntington, West Virginia	1998		1,077,580		3,592			8,078
Parent and Intercompany Eliminations				7,006		(611	)		(1,254	)
Consolidated Total			$	1,514,300	$	4,375		$	9,508

All significant intercompany transactions and balances have been eliminated.

On June 8, 2018, Premier issued a 5 for 4 stock split to shareholders of record on June 4, 2018.  Each shareholder received 1 additional share of common stock for every 4 shares of common stock already owned on the record date.  Outstanding shares and per share amounts prior to the payment date have been restated to reflect the additional shares issued as a result of the stock split to aid in the comparison to current period results.

During the first three months of 2018, management updated its policies regarding estimation of probable incurred losses.  The updates included incorporating a common estimated loss ratio for all pass credits within a given loan classification, adding an additional qualitative factor for document exceptions on collectively impaired loans, and reallocating the qualitative portion of the allowance to align more closely to the inputs used to determine the qualitative portion.  The previous methodology allocated a higher loss ratio to loans graded “Watch” to estimate a higher credit risk on these loans due to risk downgrades resulting from document exceptions.  Loans graded “Watch” are considered pass credits.  The changes did not have a material impact on the overall allowance for loan losses or the provision for loan losses for the three and six months ended June 30, 2018.

Recently Issued Accounting Pronouncements

In May 2014, FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The guidance provides the following steps to achieve the core principle (1) Identify the contract(s) with the customer, (2) Identify the performance obligations in the contract, (3) Determine the transaction price, (4) Allocate the transaction price to the performance obligations in the contract, and (5) Recognize revenue when (or as) the entity satisfies a performance obligation.   Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance, as amended, is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2017, including interim periods within those reporting periods.

Management’s assessment on revenue recognition by following the five steps resulted in no material changes from the current revenue recognition because the majority of revenues earned by the Company are not within the scope of ASU 2014-09.  As interest income on loans and securities are both excluded from Topic 606, the majority of revenue earned is not subject to the new guidance.  Service charges on deposit accounts, debit card interchange fees, and ATM fees are services provided that fall within the scope of Topic 606 and are presented within non-interest income as revenue when the obligation to the customer is satisfied.  Gains on the sale of OREO fall within the scope of Topic 606 and are recognized as a credit to non-interest expense as an offset to writedowns of carrying value and losses on the sale of OREO, as permitted.  The Company adopted Topic 606 as of January 1, 2018 with no material change in how revenues are recognized in the Company’s financial statements.  Significant items of non-interest income are described below.

Service charges on deposit accounts – Fees are earned from our deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees and overdraft fees are recognized at a point in time, since the customer generally has a right to cancel the depository arrangement at any time. The arrangement is considered a day-to-day contract with ongoing renewals and optional purchases, so the duration of the contract does not extend beyond the services already performed. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which we satisfy our performance obligation.

Debit card interchange fees - Revenue earned from a portion of the fee charged to merchants for the immediate approval of credit for funds (whether debit or credit card usage) is recognized on a daily cash basis and the commission is paid through Premier’s third-party processor.  The revenue is earned on a transaction basis determined by customer activity.  Premier records this revenue on a gross revenue basis and expenses the processing charges incurred as a non-interest expense.

Non-customer ATM fees – Fees charged to non-deposit customers for using bank owned automated teller machines is charged on a transaction basis and withdrawn from the users’ deposit account at another financial institution upon completion of the transaction.

Gain on sale of OREO – A gain is recognized upon the sale of OREO when a contract exists between the seller and purchaser and the control of the asset is transferred to the buyer.  The gain is then reported as a reduction of non-interest expense under the heading “Write-downs, expenses, sales of other real estate owned, net.”

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.  The ASU makes several targeted improvement modifications to Subtopic 825-10, which (1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment and when an impairment exists, an entity is required to measure the investment at fair value, (3) Eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) Use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) Present separately in other comprehensive income the portion of the total changes in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option of financial instruments, (6) Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial instruments, and (7) Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.  The Company adopted subtopic 825-10 on January 1, 2018 which resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis.  See footnote 7 for additional information on fair value.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing requirements for leases that were historically classified as operating leases under previous generally accepted accounting principles. This ASU will become effective for the Company for interim and annual periods beginning after December 15, 2018.  The Company leases some of its branch locations.  Upon adoption of this standard, an asset will be recorded to recognize the right of the Company to use the leased facilities and a liability will be recorded representing the obligation to make all future lease payments on those facilities.  Management is currently evaluating the amounts to be recognized upon the adoption of this guidance in the Company’s financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments.  This ASU replaces the measurement for credit losses from a probable incurred estimate with an expected future loss estimate, which is referred to as the “current expected credit loss” or “CECL”.  The standard pertains to financial assets measured at amortized cost such as loans, debt securities classified as held-to-maturity, and certain other contracts, in which organizations will now use forward-looking information to enhance their credit loss estimates on these assets.  The largest impact will be on the allowance for loan and lease losses.  This ASU will become effective for the Company for interim and annual periods beginning after December 15, 2019, although early adoption is permitted beginning after December 15, 2018. The company has formed a committee to oversee the steps required in the adoption of the new current expected credit loss method.  The committee has selected a third-party vendor to assist in data analysis and modeling as well as the required disclosures.

Management is currently evaluating the impact of the adoption of this guidance on the Company’s financial statements.  Upon adoption, an initial cumulative increase in the allowance for loan losses is currently anticipated by management along with a corresponding decrease in capital as permitted by the standard but cannot yet determine the one-time adjustment.

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  This ASU amends Topic 220, Income Statement – Reporting Comprehensive Income to permit the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and any future change in corporate income tax rates.  The update does not affect the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations.  The Company adopted ASU 2018-02 retroactively to December 31, 2017 as permitted by the guidance.

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SECURITIES

6 Months Ended

Jun. 30, 2018

SECURITIES [Abstract]

SECURITIES

NOTE  2 –SECURITIES

Amortized cost and fair value of investment securities, by category, at June 30, 2018 are summarized as follows:

2018	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	214,588	$	50	$	(6,170	)	$	208,468
U. S. sponsored agency CMO’s - residential		67,247		36		(1,250	)		66,033
Total mortgage-backed securities of government sponsored agencies		281,835		86		(7,420	)		274,501
U. S. government sponsored agency securities		14,255		-		(232	)		14,023
Obligations of states and political subdivisions		9,189		36		(57	)		9,168
Total available for sale	$	305,279	$	122	$	(7,709	)	$	297,692

Amortized cost and fair value of investment securities, by category, at December 31, 2017 are summarized as follows:

2017	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	198,631	$	175	$	(2,216	)	$	196,590
U. S. sponsored agency CMO’s - residential		51,548		241		(681	)		51,108
Total mortgage-backed securities of government sponsored agencies		250,179		416		(2,897	)		247,698
U. S. government sponsored agency securities		19,312		1		(179	)		19,134
Obligations of states and political subdivisions		11,599		61		(26	)		11,634
Total available for sale	$	281,090	$	478	$	(3,102	)	$	278,466

The amortized cost and fair value of securities at June 30, 2018 by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Available for sale
Due in one year or less	$	7,792	$	7,785
Due after one year through five years		12,857		12,702
Due after five years through ten years		2,795		2,704
Mortgage-backed securities of government sponsored agencies		281,835		274,501
Total available for sale	$	305,279	$	297,692

Securities with unrealized losses at June 30, 2018 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:

	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S government sponsored agency securities	$	2,005	$	(31	)	$	12,018	$	(201	)	$	14,023	$	(232	)
U.S government sponsored agency MBS – residential		158,444		(3,866	)		48,235		(2,304	)		206,679		(6,170	)
U.S government sponsored agency CMO – residential		41,235		(417	)		15,843		(833	)		57,078		(1,250	)
Obligations of states and political subdivisions		4,016		(49	)		473		(8	)		4,489		(57	)
Total temporarily impaired	$	205,700	$	(4,363	)	$	76,569	$	(3,346	)	$	282,269	$	(7,709	)

Securities with unrealized losses at December 31, 2017 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:

	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S government sponsored agency securities	$	6,780	$	(41	)	$	10,335	$	(138	)	$	17,115	$	(179	)
U.S government sponsored agency MBS – residential		134,211		(1,076	)		47,682		(1,140	)		181,893		(2,216	)
U.S government sponsored agency CMO’s – residential		8,306		(64	)		17,868		(617	)		26,174		(681	)
Obligations of states and political subdivisions		3,512		(20	)		474		(6	)		3,986		(26	)
Total temporarily impaired	$	152,809	$	(1,201	)	$	76,359	$	(1,901	)	$	229,168	$	(3,102	)

The investment portfolio is predominately high credit quality interest-bearing bonds with defined maturity dates backed by the U.S. Government or Government sponsored entities.  The unrealized losses at June 30, 2018 and December 31, 2017 are price changes resulting from changes in the interest rate environment and are considered to be temporary declines in the value of the securities.  Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery.  Their fair value is expected to recover as the bonds approach their maturity date and/or market conditions improve.

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LOANS

6 Months Ended

Jun. 30, 2018

LOANS [Abstract]

LOANS

NOTE  3 - LOANS

Major classifications of loans at June 30, 2018 and December 31, 2017 are summarized as follows:

	2018		2017
Residential real estate	$	341,157	$	338,829
Multifamily real estate		58,154		62,151
Commercial real estate:
Owner occupied		136,795		136,048
Non-owner occupied		223,491		230,702
Commercial and industrial		78,358		78,259
Consumer		27,966		28,293
Construction and land		127,641		139,012
All other		34,091		35,758
	$	1,027,653	$	1,049,052

Activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2018 was as follows:

Loan Class	Balance Dec 31, 2017		Provision (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2018
Residential real estate	$	2,986	$	(609	)	$	(148	)	$	25	$	2,254
Multifamily real estate		978		(410	)		(11	)		-		557
Commercial real estate:
Owner occupied		1,653		266			(3	)		1		1,917
Non-owner occupied		2,313		140			(16	)		-		2,437
Commercial and industrial		1,101		976			(504	)		26		1,599
Consumer		328		51			(63	)		38		354
Construction and land		2,408		864			(19	)		-		3,253
All other		337		337			(130	)		67		611
Total	$	12,104	$	1,615		$	(894	)	$	157	$	12,982

Activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2017 was as follows:

Loan Class	Balance Dec 31, 2016		Provision (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2017
Residential real estate	$	2,948	$	193		$	(199	)	$	31	$	2,973
Multifamily real estate		785		552			-			-		1,337
Commercial real estate:
Owner occupied		1,543		(166	)		-			241		1,618
Non-owner occupied		2,350		(12	)		(4	)		-		2,334
Commercial and industrial		1,140		9			(134	)		78		1,093
Consumer		347		138			(165	)		53		373
Construction and land		1,397		392			(124	)		10		1,675
All other		326		36			(140	)		70		292
Total	$	10,836	$	1,142		$	(766	)	$	483	$	11,695

Activity in the allowance for loan losses by portfolio segment for the three months ended

June 30, 2018 was as follows:

Loan Class	Balance March 31, 2018		Provision (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2018
Residential real estate	$	2,262	$	82		$	(99	)	$	9	$	2,254
Multifamily real estate		647		(90	)		-			-		557
Commercial real estate:
Owner occupied		1,816		102			(1	)		-		1,917
Non-owner occupied		2,187		250			-			-		2,437
Commercial and industrial		1,651		163			(237	)		22		1,599
Consumer		369		2			(30	)		13		354
Construction and land		3,302		(49	)		-			-		3,253
All other		606		40			(63	)		28		611
Total	$	12,840	$	500		$	(430	)	$	72	$	12,982

Activity in the allowance for loan losses by portfolio segment for the three months ended

June 30, 2017 was as follows:

Loan Class	Balance March 31, 2017		Provision  (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2017
Residential real estate	$	2,977	$	64		$	(94	)	$	26	$	2,973
Multifamily real estate		770		567			-			-		1,337
Commercial real estate:
Owner occupied		1,576		(198	)		-			240		1,618
Non-owner occupied		2,422		(88	)		-			-		2,334
Commercial and industrial		1,129		43			(134	)		55		1,093
Consumer		370		22			(48	)		29		373
Construction and land		1,313		358			-			-		1,675
All other		332		9			(81	)		32		292
Total	$	10,894	$	776		$	(357	)	$	382	$	11,695

Purchased Impaired Loans

The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected.  The carrying amount of those loans is as follows at June 30, 2018 and December 31, 2017.

	2018		2017
Residential real estate	$	1,109	$	1,321
Commercial real estate
Owner occupied		1,410		1,508
Commercial and industrial		6		211
Construction and land		1,305		1,450
All other		286		286
Total carrying amount	$	4,116	$	4,776
Contractual principal balance	$	5,765	$	6,728
Carrying amount, net of allowance	$	4,116	$	4,676

For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during the six-months ended June 30, 2018, but did increase the allowance for loan losses by $50,000 during the six-months ended June 30, 2017.

For those purchased loans disclosed above, where the Company can reasonably estimate the cash flows expected to be collected on the loans, a portion of the purchase discount is allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion is being recognized as interest income over the remaining life of the loan.

Where the Company cannot reasonably estimate the cash flows expected to be collected on the loans, it has continued to account for those loans using the cost recovery method of income recognition.  As such, no portion of a purchase discount adjustment has been determined to meet the definition of an accretable yield adjustment on those loans accounted for using the cost recovery method.  If, in the future, cash flows from the borrower(s) can be reasonably estimated, a portion of the purchase discount would be allocated to an accretable yield adjustment based upon the present value of the future estimated cash flows versus the current carrying value of the loan and the accretable yield portion would be recognized as interest income over the remaining life of the loan.  Until such accretable yield can be calculated, under the cost recovery method of income recognition, all payments will be used to reduce the carrying value of the loan and no income will be recognized on the loan until the carrying value is reduced to zero.  Any loan accounted for under the cost recovery method is also still included as a non-accrual loan in the amounts presented in the tables below.

The accretable yield, or income expected to be collected, on the purchased loans above is as follows at June 30, 2018 and June 30, 2017.

	2018			2017
Balance at January 1	$	754		$	1,208
New loans purchased		-			-
Accretion of income		(80	)		(206	)
Loans placed on non-accrual		(41	)		-
Income recognized upon full repayment		(38	)		(197	)
Reclassifications from non-accretable difference		-			-
Disposals		-			-
Balance at June 30	$	595		$	805

Past Due and Non-performing Loans

The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2018 and December 31, 2017.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

June 30, 2018	Principal Owed on Non-accrual Loans		Recorded Investment in Non-accrual Loans		Loans Past Due Over 90 Days, still accruing
Residential real estate	$	3,907	$	3,246	$	686
Multifamily real estate		1,984		1,972		-
Commercial real estate
Owner occupied		4,063		3,887		-
Non-owner occupied		1,635		1,573		2,889
Commercial and industrial		1,017		438		47
Consumer		233		205		-
Construction and land		4,803		4,711		27
All other		185		185		6
Total	$	17,827	$	16,217	$	3,655

December 31, 2017	Principal Owed on Non-accrual Loans		Recorded Investment in Non-accrual Loans		Loans Past Due Over 90 Days, still accruing
Residential real estate	$	2,944	$	2,422	$	869
Multifamily real estate		2,128		2,128		334
Commercial real estate
Owner occupied		2,623		2,483		134
Non-owner occupied		1,862		1,755		85
Commercial and industrial		1,313		544		1,139
Consumer		268		241		-
Construction and land		5,824		5,673		830
Total	$	16,962	$	15,246	$	3,391

Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some may only be included in one category.  Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the aging of the recorded investment in past due loans as of June 30, 2018 by class of loans:

Loan Class	Total Loans		30-89 Days Past Due		Greater than 90 days past due		Total Past Due		Loans Not Past Due
Residential real estate	$	341,157	$	5,730	$	2,145	$	7,875	$	333,282
Multifamily real estate		58,154		106		1,972		2,078		56,076
Commercial real estate:
Owner occupied		136,795		249		1,512		1,761		135,034
Non-owner occupied		223,491		989		2,889		3,878		219,613
Commercial and industrial		78,358		56		239		295		78,063
Consumer		27,966		347		82		429		27,537
Construction and land		127,641		4,001		813		4,814		122,827
All other		34,091		-		191		191		33,900
Total	$	1,027,653	$	11,478	$	9,843	$	21,321	$	1,006,332

The following table presents the aging of the recorded investment in past due loans as of December 31, 2017 by class of loans:

Loan Class	Total Loans		30-89 Days Past Due		Greater than 90 days past due		Total Past Due		Loans Not Past Due
Residential real estate	$	338,829	$	5,242	$	1,835	$	7,077	$	331,752
Multifamily real estate		62,151		-		334		334		61,817
Commercial real estate:
Owner occupied		136,048		311		1,784		2,095		133,953
Non-owner occupied		230,702		12		225		237		230,465
Commercial and industrial		78,259		123		1,611		1,734		76,525
Consumer		28,293		492		87		579		27,714
Construction and land		139,012		144		2,508		2,652		136,360
All other		35,758		-		-		-		35,758
Total	$	1,049,052	$	6,324	$	8,384	$	14,708	$	1,034,344

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2018:

	Allowance for Loan Losses								Loan Balances
Loan Class	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total
Residential real estate	$	-	$	2,254	$	-	$	2,254	$	298	$	339,750	$	1,109	$	341,157
Multifamily real estate		72		485		-		557		1,972		56,182		-		58,154
Commercial real estate:
Owner occupied		400		1,517		-		1,917		3,054		132,331		1,410		136,795
Non-owner occupied		79		2,358		-		2,437		7,564		215,927		-		223,491
Commercial and industrial		64		1,535		-		1,599		539		77,813		6		78,358
Consumer		-		354		-		354		-		27,966		-		27,966
Construction and land		990		2,263				3,253		4,511		121,825		1,305		127,641
All other		-		611		-		611		283		33,522		286		34,091
Total	$	1,605	$	11,377	$	-	$	12,982	$	18,221	$	1,005,316	$	4,116	$	1,027,653

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2017:

	Allowance for Loan Losses								Loan Balances
Loan Class	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total
Residential real estate	$	-	$	2,986	$	-	$	2,986	$	308	$	337,200	$	1,321	$	338,829
Multifamily real estate		218		760		-		978		2,462		59,689		-		62,151
Commercial real estate:
Owner occupied		307		1,346		-		1,653		3,314		131,226		1,508		136,048
Non-owner occupied		88		2,225		-		2,313		11,578		219,124		-		230,702
Commercial and industrial		104		897		100		1,101		1,304		76,744		211		78,259
Consumer		-		328		-		328		-		28,293		-		28,293
Construction and land		685		1,723		-		2,408		5,672		131,890		1,450		139,012
All other		-		337		-		337		293		35,179		286		35,758
Total	$	1,402	$	10,602	$	100	$	12,104	$	24,931	$	1,019,345	$	4,776	$	1,049,052

In the tables below, total individually evaluated impaired loans include certain purchased loans that were acquired with deteriorated credit quality that are still individually evaluated for impairment.

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2018.  The table does not include any loans acquired with deteriorated credit quality.

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Residential real estate	$	434	$	298	$	-
Commercial real estate
Owner occupied		2,187		2,186		-
Non-owner occupied		5,611		5,557		-
Commercial and industrial		1,005		474		-
All other		284		284		-
		9,521		8,799		-
With an allowance recorded:
Multifamily real estate		1,984		1,972		72
Commercial real estate
Owner occupied		894		868		400
Non-owner occupied		2,007		2,007		79
Commercial and industrial		72		64		64
Construction and land		4,602		4,511		990
		9,559		9,422		1,605
Total	$	19,080	$	18,221	$	1,605

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2017.  The table includes $199,000 of loans acquired with deteriorated credit quality for which the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Residential real estate	$	446	$	308	$	-
Multifamily real estate		334		334		-
Commercial real estate
Owner occupied		2,451		2,439		-
Non-owner occupied		9,602		9,506		-
Commercial and industrial		1,719		1,188		-
Construction and land		1,798		1,678		-
All other		293		293		-
		16,643		15,746		-
With an allowance recorded:
Multifamily real estate	$	2,128	$	2,128	$	218
Commercial real estate
Owner occupied		895		875		307
Non-owner occupied		2,072		2,072		88
Commercial and industrial		466		315		204
Construction and land		4,024		3,994		685
		9,585		9,384		1,502
Total	$	26,228	$	25,130	$	1,502

The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the six months ended June 30, 2018 and June 30, 2017.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

	Six months ended June 30, 2018						Six months ended June 30, 2017
Loan Class	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Residential real estate	$	302	$	-	$	-	$	345	$	1	$	1
Multifamily real estate		2,287		11		11		13,611		130		121
Commercial real estate:
Owner occupied		3,208		51		51		3,211		22		22
Non-owner occupied		9,535		241		241		2,079		61		61
Commercial and industrial		1,145		16		16		1,523		101		101
Construction and land		4,703		3		3		8,822		280		277
All other		288		4		4		307		9		9
Total	$	21,468	$	326	$	326	$	29,898	$	604	$	592

The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended June 30, 2018 and June 30, 2017.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

	Three months ended June 30, 2018						Three months ended June 30, 2017
Loan Class	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Residential real estate	$	299	$	-	$	-	$	328	$	-	$	-
Multifamily real estate		2,199		1		1		13,596		65		59
Commercial real estate:
Owner occupied		3,154		26		26		3,417		16		16
Non-owner occupied		8,514		105		105		1,932		29		29
Commercial and industrial		966		8		8		1,471		27		27
Construction and land		4,218		3		3		6,900		48		46
All other		286		-		-		305		9		9
Total	$	19,636	$	143	$	143	$	27,949	$	194	$	186

Troubled Debt Restructurings

A loan is classified as a troubled debt restructuring ("TDR") when loan terms are modified due to a borrower's financial difficulties and a concession is granted to a borrower that would not have otherwise been considered. Most of the Company’s loan modifications involve a restructuring of loan terms prior to maturity to temporarily reduce the payment amount and/or to require only interest for a temporary period, usually up to six months.  These modifications generally do not meet the definition of a TDR because the modifications are considered to be an insignificant delay in payment.  The determination of an insignificant delay in payment is evaluated based on the facts and circumstances of the individual borrower(s).

The following table presents TDR’s as of June 30, 2018 and December 31, 2017:

June 30, 2018	TDR’s on Non-accrual		Other TDR’s		Total TDR’s
Residential real estate	$	357	$	117	$	474
Multifamily real estate		1,972		-		1,972
Commercial real estate
Owner occupied		402		1,784		2,186
Non-owner occupied		-		6,029		6,029
Commercial and industrial		-		474		474
Construction and land		3,925		-		3,925
All other		-		284		284
Total	$	6,656	$	8,688	$	15,344

December 31, 2017	TDR’s on Non-accrual		Other TDR’s		Total TDR’s
Residential real estate	$	393	$	107	$	500
Multifamily real estate		2,128		-		2,128
Commercial real estate
Owner occupied		601		1,783		2,384
Non-owner occupied		-		9,904		9,904
Commercial and industrial		56		497		553
Construction and land		3,994		-		3,994
All other		-		293		293
Total	$	7,172	$	12,584	$	19,756

At June 30, 2018, $1,136,000 in specific reserves was allocated to loans that had restructured terms resulting in a provision for loan losses $163,000 for the six months ended and a negative provision of $216,000 for the three months ended June 30, 2018.  This compares toto no provision for loan losses on restructured loans for the three and six months ended June 30, 2017.  At December 31, 2017, $1,029,000 in specific reserves was allocated to loans that had restructured terms.  There were no commitments to lend additional amounts to these borrowers.

There were no new TDR’s that occurred during the three and six months ended June 30, 2018.

The following table presents TDR’s that occurred during the three and six months ended June 30, 2017.

	Three months ended June 30, 2017						Six months ended June 30, 2017
Loan Class	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate
Owner occupied		2	$	1,525	$	1,525		2	$	1,525	$	1,525
Commercial & industrial		1		191		191		1		191		191
Total		3	$	1,716	$	1,716		3	$	1,716	$	1,716

The modifications reported above for the six months ended June 30, 2017 involve one borrowing relationship that did not include any permanent reduction of the recorded investment in the loans nor change in the interest rate on the loans.  The Company has modified the terms of the loans granting interest only payments during a period of loan rehabilitation.  These periods have exceeded normal interest only periods customarily offered by the Company.  During the three and six month ended June 30, 2017, the Company did not increase the allowance for loan losses related to these loans.

During the three and six months ended June 30, 2018 and the three and six months ended June 30, 2017, there were no TDR’s for which there as a payment default within twelve months following the modification.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes non-homogeneous loans, such as commercial, commercial real estate, multifamily residential and commercial purpose loans secured by residential real estate, on a monthly basis.  For consumer loans, including consumer loans secured by residential real estate, and smaller balance non-homogeneous loans, the analysis involves monitoring the performing status of the loan.  At the time such loans become past due by 90 days or more, the Company evaluates the loan to determine if a change in risk category is warranted. The Company uses the following definitions for risk ratings:

Special Mention.  Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard.  Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful.  Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

As of June 30, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class	Pass		Special Mention		Substandard		Doubtful		Total Loans
Residential real estate	$	331,254	$	1,120	$	8,783	$	-	$	341,157
Multifamily real estate		51,196		4,986		1,972		-		58,154
Commercial real estate:
Owner occupied		125,261		5,060		6,474		-		136,795
Non-owner occupied		212,252		3,018		8,221		-		223,491
Commercial and industrial		71,370		4,234		2,754		-		78,358
Consumer		27,616		-		350		-		27,966
Construction and land		112,956		8,647		6,038		-		127,641
All other		32,783		838		470		-		34,091
Total	$	964,688	$	27,903	$	35,062	$	-	$	1,027,653

As of December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class	Pass		Special Mention		Substandard		Doubtful		Total Loans
Residential real estate	$	327,185	$	667	$	10,976	$	1	$	338,829
Multifamily real estate		55,084		4,605		2,462		-		62,151
Commercial real estate:
Owner occupied		124,244		4,937		6,867		-		136,048
Non-owner occupied		216,079		2,428		12,195		-		230,702
Commercial and industrial		70,078		5,851		2,330		-		78,259
Consumer		27,889		-		404		-		28,293
Construction and land		126,323		5,460		7,229				139,012
All other		34,468		795		495		-		35,758
Total	$	981,350	$	24,743	$	42,958	$	1	$	1,049,052

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STOCKHOLDERS' EQUITY AND REGULATORY MATTERS

6 Months Ended

Jun. 30, 2018

STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract]

STOCKHOLDERS' EQUITY AND REGULATORY MATTERS

NOTE  4- STOCKHOLDERS’ EQUITY AND REGULATORY MATTERS

The Company’s principal source of funds for dividend payments to shareholders is dividends received from the subsidiary Banks.  Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies.  Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, as defined, combined with the retained net profits of the preceding two years, subject to the capital requirements and additional restrictions as discussed below.  During 2018 the Banks could, without prior approval, declare dividends to the Company of approximately $7.7 million plus any 2018 net profits retained to the date of the dividend declaration.

The Company and the subsidiary Banks are subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Banks must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.

These quantitative measures established by regulation to ensure capital adequacy require the Company and Banks to maintain minimum amounts and ratios (set forth in the following tables).  The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Company and Banks on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule by     January 1, 2019.  The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital.  Management believes, as of June 30, 2018, that the Company and the Banks meet all quantitative capital adequacy requirements to which they are subject.

Shown below is a summary of regulatory capital ratios, exclusive of the capital conservation buffer, for the Company:

	June 30, 2018			December 31, 2017			Regulatory Minimum Requirements			To Be Considered Well Capitalized
Common Equity Tier 1 Capital (to Risk-Weighted Assets)		14.8	%		13.9	%		4.5	%		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)		15.3	%		14.4	%		6.0	%		8.0	%
Total Capital (to Risk-Weighted Assets)		16.6	%		15.6	%		8.0	%		10.0	%
Tier 1 Capital (to Average Assets)		10.9	%		10.7	%		4.0	%		5.0	%

Beginning on January 1, 2016 an additional capital conservation buffer has been added to the minimum regulatory capital ratios under the regulatory framework for prompt corrective action.  The capital conservation buffer will be measured as a percentage of risk weighted assets and will be phased-in over a four year period from 2016 thru 2019. The required capital conservation buffer was 1.25% in 2017, and is 1.875% in 2018.  When fully implemented, the capital conservation buffer will be 2.50% of risk weighted assets over and above the regulatory minimum capital ratios for Common Equity Tier 1 Capital (CET1) to risk weighted assets, Tier 1 Capital to risk weighted assets, and Total Capital to risk weighted assets.  The consequences of not meeting the capital conservation buffer thresholds include restrictions on the payment of dividends, restrictions on the payment of discretionary bonuses, and restrictions on the repurchasing of common shares by the Company.  The capital ratios of the Affiliate Banks and the Company already exceed the new minimum capital ratios plus the fully phased-in 2.50% capital buffer requiring a CET1 Capital to risk weighted assets ratio of at least 7.00%, a Tier 1 Capital to risk weighted assets ratio of at least 8.50%, and a Total Capital to risk weighted assets ratio of at least 10.50%.  The Company’s capital conservation buffer was 8.56% at June 30, 2018 and 7.56% at December 31, 2017, well in excess of the fully phased-in 2.50% required by March 31, 2019.

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STOCK COMPENSATION EXPENSE

6 Months Ended

Jun. 30, 2018

STOCK COMPENSATION EXPENSE [Abstract]

STOCK COMPENSATION EXPENSE

NOTE  5 – STOCK COMPENSATION EXPENSE

From time to time the Company grants stock options to its employees.  The Company estimates the fair value of the options at the time they are granted to employees and expenses that fair value over the vesting period of the option grant.

On March 21, 2018, 67,875 incentive stock options were granted under the 2012 Long Term Incentive Plan at an exercise price of $15.12, the closing market price of Premier’s common stock on the grant date.  These options vest in three equal annual installments ending on March 21, 2021.  On March 15, 2017, 69,375 incentive stock options were granted under the 2012 Long Term Incentive Plan at an exercise price of $15.21, the closing market price of Premier’s common stock on the grant date.  These options vest in three equal annual installments ending on March 15, 2020.

On April 25, 2018, 7,500 shares of Premier’s common stock were granted to President and CEO, Robert W. Walker as stock-based bonus compensation under the 2012 Long-term Incentive Plan.  The fair value of the stock at the time of the grant was $15.82 per share based upon the closing price of Premier’s stock on the date of grant and $119,000 of stock-based compensation was recorded as a result.  On April 19, 2017, 7,500 shares of Premier’s common stock were granted to President and CEO, Robert W. Walker as stock-based bonus compensation under the 2012 Long-term Incentive Plan.  The fair value of the stock at the time of the grant was $16.56 per share based upon the closing price of Premier’s stock on the date of grant and $124,000 of stock-based compensation was recorded as a result.

Compensation expense of $181,000 was recorded for the first six months of 2018 while $169,000 was recorded for the first six months of 2017.  Stock-based compensation expense related to incentive stock option grants is recognized ratably over the requisite vesting period for all awards. Unrecognized stock-based compensation expense related to stock options totaled $173,000 at June 30, 2018. This unrecognized expense is expected to be recognized over the next 32 months based on the vesting periods of the options.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2018

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE  6 – EARNINGS PER SHARE

A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution computations for the three and six months ended June 30, 2018 and 2017 is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Basic earnings per share
Income available to common stockholders	$	4,375	$	3,919	$	9,508	$	7,583
Weighted average common shares outstanding		13,355,564		13,320,438		13,350,995		13,312,188
Earnings per share	$	0.33	$	0.29	$	0.71	$	0.57
Diluted earnings per share
Income available to common stockholders	$	4,375	$	3,919	$	9,508	$	7,583
Weighted average common shares outstanding		13,355,564		13,320,438		13,350,995		13,312,188
Add dilutive effects of potential additional common stock		106,593		111,230		91,381		103,925
Weighted average common and dilutive potential common shares outstanding		13,462,157		13,431,668		13,442,376		13,416,113
Earnings per share assuming dilution	$	0.32	$	0.29	$	0.71	$	0.57

There were no stock options considered antidilutive for the six months ended June 30, 2018 and 2017.  There were no stock options considered antidilutive for the three months ended June 30, 2018 and 2017.

On June 8, 2018, Premier issued a 5 for 4 stock split to shareholders of record on June 4, 2018.  Each shareholder received 1 additional share of common stock for every 4 shares of common stock already owned on the record date.  Outstanding shares and per share amounts prior to the payment date have been restated to reflect the additional shares issued as a result of the stock split to aid in the comparison to current period results.

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FAIR VALUE

6 Months Ended

Jun. 30, 2018

FAIR VALUE [Abstract]

FAIR VALUE

NOTE  7 – FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. However, certain assets and liabilities are not traded in observable markets and the Company must use other valuation methods to develop a fair value.

Carrying amount is the estimated fair value for cash and due from banks, Federal funds sold, accrued interest receivable and payable, demand deposits, short-term debt, and deposits that reprice frequently and fully.  Fair values of time deposits with other banks are based on current rates for similar time deposits using the remaining time to maturity.  It was not practicable to determine the fair value of Federal Home Loan Bank stock due to the restrictions placed on its transferability.  For deposits and variable rate deposits with infrequent repricing, fair value is based on discounted cash flows using current market rates applied to the estimated life.  The methodology for the fair value valuation of loans held for investment has been impacted by the adoption of ASU 2016-01.  Fair values for loans had been previously based upon the measured at the entry price notion by using the discounted cash flow or collateral value.  The newly adopted exit price notion uses the same approach but also incorporates additional factors such as using economic factors, credit risk, and market rates and conditions.  The new definition using the exit price focuses on the price that would be received to sell the asset or paid to transfer the liability, not the price that would be paid to acquire the asset or received to assume the liability.  As of June 30, 2018, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2017, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach, using the eight categories as disclosed in Note 3 – Loans.

Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values.  Fair value of debt is based on current rates for similar financing. The fair value of commitments to extend credit and standby letters of credit is not material.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a recurring basis:

Investment Securities:  The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

The carrying amounts and estimated fair values of financial instruments at June 30, 2018 were as follows:

				Fair Value Measurements at June 30, 2018 Using
	Carrying Amount			Level 1			Level 2			Level 3		Total
Financial assets
Cash and due from banks	$	108,436		$	108,436		$	-		$	-	$	108,436
Time deposits with other banks		2,582			-			2,569			-		2,569
Federal funds sold		3,092			3,092			-			-		3,092
Securities available for sale		297,692			-			297,692			-		297,692
Loans, net		1,014,671			-			-			1,005,002		1,005,002
Federal Home Loan Bank stock		3,173			n/a			n/a			n/a		n/a
Interest receivable		3,764			-			763			3,001		3,764
Financial liabilities
Deposits	$	(1,294,156	)	$	(954,185	)	$	(333,058	)	$	-	$	(1,287,243	)
Securities sold under agreements to repurchase		(21,865	)		-			(21,865	)		-		(21,865	)
Other borrowed funds		(3,800	)		-			(3,747	)		-		(3,747	)
Subordinated debt		(5,391	)		-			(5,500	)		-		(5,500	)
Interest payable		(462	)		(10	)		(452	)		-		(462	)

The carrying amounts and estimated fair values of financial instruments at December 31, 2017 were as follows:

				Fair Value Measurements at December 31, 2017 Using
	Carrying Amount			Level 1			Level 2			Level 3		Total
Financial assets
Cash and due from banks	$	78,005		$	78,005		$	-		$	-	$	78,005
Time deposits with other banks		2,582			-			2,581			-		2,581
Federal funds sold		4,658			4,658			-			-		4,658
Securities available for sale		278,466			-			278,466			-		278,466
Loans, net		1,036,948			-			-			1,016,723		1,016,723
Federal Home Loan Bank stock		3,185			n/a			n/a			n/a		n/a
Interest receivable		4,043			-			700			3,343		4,043
Financial liabilities
Deposits	$	(1,272,675	)	$	(929,202	)	$	(338,291	)	$	-	$	(1,267,493	)
Securities sold under agreements to repurchase		(23,310	)		-			(23,310	)		-		(23,310	)
Other borrowed funds		(5,000	)		-			(4,955	)		-		(4,955	)
Subordinated debt		(5,376	)		-			(5,439	)		-		(5,439	)
Interest payable		(393	)		(7	)		(386	)		-		(393	)

Assets and Liabilities Measured on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at June 30, 2018 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	$	208,468	$	-	$	208,468	$	-
U. S. agency CMO’s - residential		66,033		-		66,033		-
Total mortgage-backed securities of government sponsored agencies		274,501		-		274,501		-
U. S. government sponsored agency securities		14,023		-		14,023		-
Obligations of states and political subdivisions		9,168		-		9,168		-
Total securities available for sale	$	297,692	$	-	$	297,692	$	-

			Fair Value Measurements at December 31, 2017 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	$	196,590	$	-	$	196,590	$	-
U. S. agency CMO’s		51,108		-		51,108		-
Total mortgage-backed securities of government sponsored agencies		247,698		-		247,698		-
U. S. government sponsored agency securities		19,134		-		19,134		-
Obligations of states and political subdivisions		11,634		-		11,634		-
Total securities available for sale	$	278,466	$	-	$	278,466	$	-

There were no transfers between Level 1 and Level 2 during 2018 or 2017.

Assets and Liabilities Measured on a Non-Recurring Basis

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument measured on a non-recurring basis:

Impaired loans:  The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent collateral appraisals. Real estate appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and unique to each property and result in a Level 3 classification of the inputs for determining fair value.  Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports. Management periodically evaluates the appraised collateral values and will discount the collateral’s appraised value to account for a number of factors including but not limited to the cost of liquidating the collateral, the age of the appraisal, observable deterioration since the appraisal, management’s expertise and knowledge of the client and client’s business, or other factors unique to the collateral.  To the extent an adjusted collateral value is lower than the carrying value of an impaired loan, a specific allocation of the allowance for loan losses is assigned to the loan.

Other real estate owned (OREO):  The fair value of OREO is based on appraisals less cost to sell at the date of foreclosure.  Management may obtain additional updated appraisals depending on the length of time since foreclosure.  These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value.  Management periodically evaluates the appraised values and will discount a property’s appraised value to account for a number of factors including but not limited to the cost of liquidating the collateral, the age of the appraisal, observable deterioration since the appraisal, or other factors unique to the property. To the extent an adjusted appraised value is lower than the carrying value of an OREO property, a direct charge to earnings is recorded as an OREO write-down.

Assets and liabilities measured at fair value on a non-recurring basis at June 30, 2018 are summarized below:

			Fair Value Measurements at June 30, 2018 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:
Multifamily real estate	$	1,900	$	-	$	-	$	1,900
Commercial real estate
Owner occupied		468		-		-		468
Non-owner occupied		1,928		-		-		1,928
Construction and land		3,521		-		-		3,521
Total impaired loans	$	7,817	$	-	$	-	$	7,817
Other real estate owned:
Residential real estate	$	372	$	-	$	-	$	372
Commercial real estate
Owner occupied		175		-		-		175
Non-owner occupied		200		-		-		200
Construction and land		150		-		-		150
Total OREO	$	897	$	-	$	-	$	897

Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $9,423,000 at June 30, 2018 with a valuation allowance of $1,605,000 and a carrying amount of $9,384,000 at December 31, 2017 with a valuation allowance of $1,502,000.  The change resulted in a provision for loan losses of $520,000 for the six-months ended June 30, 2018, compared to a $763,000 provision for loan losses for the six-months ended June 30, 2017 and a $187,000 decrease in provision for loans losses for the three months ended June 30, 2018, compared to a $678,000 provision for loan losses for the three months ended June 30, 2017.  The detail of impaired loans by loan class is contained in Note 3 above.

Other real estate owned measured at fair value less costs to sell, had a net carrying amount of $897,000 which is made up of the outstanding balance of $1,638,000 net of a valuation allowance of $741,000 at June 30, 2018.  There were $120,000 of write downs during the six months ended June 30, 2018, compared to $363,000 of write downs during the six months ended June 30, 2017. For the three months ended June 30, 2018 there were $120,000 of additional write downs compared to $324,000 of additional write downs during the three months ended June 30, 2017.  At December 31, 2017, other real estate owned had a net carrying amount of $2,641,000, made up of the outstanding balance of $4,082,000, net of a valuation allowance of $1,441,000.

The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at June 30, 2018 are summarized below:

	June 30, 2018		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Multifamily real estate	$	1,900	sales comparison	adjustment for estimated realizable value		46.7%-46.7% (46.7	%)
Commercial real estate
Owner occupied		468	sales comparison	adjustment for estimated realizable value		36.9%-36.9% (36.9	%)
Non-owner occupied		1,928	income approach	adjustment for differences in net operating income expectations		67.4%-67.4% (67.4	%)
Construction and land		3,521	sales comparison	adjustment for percentage of completion of construction		25.1%-35.8% (34.1	%)
Total impaired loans	$	7,817
Other real estate owned:
Residential real estate	$	372	sales comparison	adjustment for estimated realizable value		9.2%-19.2% (13.5	%)
Commercial real estate
Owner occupied		175	sales comparison	adjustment for estimated realizable value		21.8%-21.8% (21.8	%)
Non-owner occupied		200	sales comparison	adjustment for estimated realizable value		58.9%-58.9% (58.9	%)
Construction and land		150	sales comparison	adjustment for estimated realizable value		50.3%-50.3% (50.3	%)
Total OREO	$	897

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2017 are summarized below:

			Fair Value Measurements at December 31, 2017 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:
Multifamily real estate	$	1,910	$	-	$	-	$	1,910
Commercial real estate
Owner occupied		568		-		-		568
Non-owner occupied		1,984		-		-		1,984
Commercial and industrial		111		-		-		111
Construction and land		3,309		-		-		3,309
Total impaired loans	$	7,882	$	-	$	-	$	7,882
Other real estate owned:
Residential real estate	$	352	$	-	$	-	$	352
Commercial real estate
Owner occupied		175		-		-		175
Non-owner occupied		200		-		-		200
Construction and land		1,914		-		-		1,914
Total OREO	$	2,641	$	-	$	-	$	2,641

The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2017 are summarized below:

	December 31, 2017		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Multifamily real estate	$	1,910	sales comparison	adjustment for estimated realizable value		46.0%-46.7% (46.4	%)
Commercial real estate
Owner occupied		568	sales comparison	adjustment for estimated realizable value		23.1%-23.1% (23.1	%)
Non-owner occupied		1,984	income approach	adjustment for differences in net operating income expectations		67.4%-67.4% (67.4	%)
Commercial and industrial		111	sales comparison	adjustment for estimated realizable value		8.0%-71.1% (64.2	%)
Construction and land		3,309	sales comparison	adjustment for percentage of completion of construction		27.7%-27.7% (27.7	%)
Total impaired loans	$	7,882
Other real estate owned:
Residential real estate	$	352	sales comparison	adjustment for estimated realizable value		8.8%-50.2% (20.0	%)
Commercial real estate
Owner occupied		175	sales comparison	adjustment for estimated realizable value		21.8%-21.8% (21.8	%)
Non-owner occupied		200	sales comparison	adjustment for estimated realizable value		58.9%-58.9% (58.9	%)
Construction and land		1,914	sales comparison	adjustment for estimated realizable value		25.2%-69.0% (27.8	%)
Total OREO	$	2,641

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PENDING ACQUISITION

6 Months Ended

Jun. 30, 2018

PENDING ACQUISITION [Abstract]

PENDING ACQUISITION

NOTE  8 – PENDING ACQUISITION

On April 18, 2018, Premier Financial Bancorp, Inc. (“Premier”) entered into a material definitive merger agreement (the “Merger Agreement”) with First Bank of Charleston, Inc. (“First Bank”), a $180 million bank (as of June 30, 2018) headquartered in Charleston, West Virginia whereby Premier will acquire First Bank in exchange for a combination of cash and Premier common stock currently valued at approximately $33.0 million.

Under terms of the definitive agreement, First Bank shareholders will be entitled to a combination of Premier common stock and cash currently valued at approximately $32.00 per First Bank share, or an aggregate value of $33.0 million, including $5.00 per share in cash from Premier and a $5.00 per share special dividend from First Bank.  Under a floating exchange ratio, Premier would issue approximately 1.165 million shares in the acquisition assuming Premier’s closing price of $19.51 per share (the weighted average of daily closing trade price of Premier common stock during the 20 consecutive trading days ending on July 23, 2018.)  The transaction, which is subject to satisfaction of various contractual conditions, requires approval by bank regulatory agencies and the shareholders of First Bank and approval of Premier shareholders for the issuance of shares.  Premier’s registration statement on Form S-4 became effective on July 27, 2018.  The transaction is anticipated to close in the fourth quarter of 2018 with a systems conversion anticipated to be completed soon thereafter.

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2018

BASIS OF PRESENTATION [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The guidance provides the following steps to achieve the core principle (1) Identify the contract(s) with the customer, (2) Identify the performance obligations in the contract, (3) Determine the transaction price, (4) Allocate the transaction price to the performance obligations in the contract, and (5) Recognize revenue when (or as) the entity satisfies a performance obligation.   Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance, as amended, is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2017, including interim periods within those reporting periods.

Management’s assessment on revenue recognition by following the five steps resulted in no material changes from the current revenue recognition because the majority of revenues earned by the Company are not within the scope of ASU 2014-09.  As interest income on loans and securities are both excluded from Topic 606, the majority of revenue earned is not subject to the new guidance.  Service charges on deposit accounts, debit card interchange fees, and ATM fees are services provided that fall within the scope of Topic 606 and are presented within non-interest income as revenue when the obligation to the customer is satisfied.  Gains on the sale of OREO fall within the scope of Topic 606 and are recognized as a credit to non-interest expense as an offset to writedowns of carrying value and losses on the sale of OREO, as permitted.  The Company adopted Topic 606 as of January 1, 2018 with no material change in how revenues are recognized in the Company’s financial statements.  Significant items of non-interest income are described below.

Service charges on deposit accounts – Fees are earned from our deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees and overdraft fees are recognized at a point in time, since the customer generally has a right to cancel the depository arrangement at any time. The arrangement is considered a day-to-day contract with ongoing renewals and optional purchases, so the duration of the contract does not extend beyond the services already performed. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which we satisfy our performance obligation.

Debit card interchange fees - Revenue earned from a portion of the fee charged to merchants for the immediate approval of credit for funds (whether debit or credit card usage) is recognized on a daily cash basis and the commission is paid through Premier’s third-party processor.  The revenue is earned on a transaction basis determined by customer activity.  Premier records this revenue on a gross revenue basis and expenses the processing charges incurred as a non-interest expense.

Non-customer ATM fees – Fees charged to non-deposit customers for using bank owned automated teller machines is charged on a transaction basis and withdrawn from the users’ deposit account at another financial institution upon completion of the transaction.

Gain on sale of OREO – A gain is recognized upon the sale of OREO when a contract exists between the seller and purchaser and the control of the asset is transferred to the buyer.  The gain is then reported as a reduction of non-interest expense under the heading “Write-downs, expenses, sales of other real estate owned, net.”

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.  The ASU makes several targeted improvement modifications to Subtopic 825-10, which (1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, (2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment and when an impairment exists, an entity is required to measure the investment at fair value, (3) Eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) Use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) Present separately in other comprehensive income the portion of the total changes in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option of financial instruments, (6) Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial instruments, and (7) Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.  The Company adopted subtopic 825-10 on January 1, 2018 which resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis.  See footnote 7 for additional information on fair value.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing requirements for leases that were historically classified as operating leases under previous generally accepted accounting principles. This ASU will become effective for the Company for interim and annual periods beginning after December 15, 2018.  The Company leases some of its branch locations.  Upon adoption of this standard, an asset will be recorded to recognize the right of the Company to use the leased facilities and a liability will be recorded representing the obligation to make all future lease payments on those facilities.  Management is currently evaluating the amounts to be recognized upon the adoption of this guidance in the Company’s financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments.  This ASU replaces the measurement for credit losses from a probable incurred estimate with an expected future loss estimate, which is referred to as the “current expected credit loss” or “CECL”.  The standard pertains to financial assets measured at amortized cost such as loans, debt securities classified as held-to-maturity, and certain other contracts, in which organizations will now use forward-looking information to enhance their credit loss estimates on these assets.  The largest impact will be on the allowance for loan and lease losses.  This ASU will become effective for the Company for interim and annual periods beginning after December 15, 2019, although early adoption is permitted beginning after December 15, 2018. The company has formed a committee to oversee the steps required in the adoption of the new current expected credit loss method.  The committee has selected a third-party vendor to assist in data analysis and modeling as well as the required disclosures.

Management is currently evaluating the impact of the adoption of this guidance on the Company’s financial statements.  Upon adoption, an initial cumulative increase in the allowance for loan losses is currently anticipated by management along with a corresponding decrease in capital as permitted by the standard but cannot yet determine the one-time adjustment.

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  This ASU amends Topic 220, Income Statement – Reporting Comprehensive Income to permit the reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and any future change in corporate income tax rates.  The update does not affect the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations.  The Company adopted ASU 2018-02 retroactively to December 31, 2017 as permitted by the guidance.

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BASIS OF PRESENTATION (Tables)

6 Months Ended

Jun. 30, 2018

BASIS OF PRESENTATION [Abstract]

Accounts of the Company and its Wholly Owned Subsidiaries

The consolidated financial statements include the accounts of Premier Financial Bancorp, Inc. (the Company) and its wholly owned subsidiaries (the “Banks”):

					June 30, 2018
		Year	Total		Net Income
Subsidiary	Location	Acquired	Assets		Qtr			YTD
Citizens Deposit Bank & Trust	Vanceburg, Kentucky	1991	$	429,714	$	1,394		$	2,684
Premier Bank, Inc.	Huntington, West Virginia	1998		1,077,580		3,592			8,078
Parent and Intercompany Eliminations				7,006		(611	)		(1,254	)
Consolidated Total			$	1,514,300	$	4,375		$	9,508

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SECURITIES (Tables)

6 Months Ended

Jun. 30, 2018

SECURITIES [Abstract]

Amortized Cost and Fair Value of Investment Securities, by Category

Amortized cost and fair value of investment securities, by category, at June 30, 2018 are summarized as follows:

2018	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	214,588	$	50	$	(6,170	)	$	208,468
U. S. sponsored agency CMO’s - residential		67,247		36		(1,250	)		66,033
Total mortgage-backed securities of government sponsored agencies		281,835		86		(7,420	)		274,501
U. S. government sponsored agency securities		14,255		-		(232	)		14,023
Obligations of states and political subdivisions		9,189		36		(57	)		9,168
Total available for sale	$	305,279	$	122	$	(7,709	)	$	297,692

Amortized cost and fair value of investment securities, by category, at December 31, 2017 are summarized as follows:

2017	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	198,631	$	175	$	(2,216	)	$	196,590
U. S. sponsored agency CMO’s - residential		51,548		241		(681	)		51,108
Total mortgage-backed securities of government sponsored agencies		250,179		416		(2,897	)		247,698
U. S. government sponsored agency securities		19,312		1		(179	)		19,134
Obligations of states and political subdivisions		11,599		61		(26	)		11,634
Total available for sale	$	281,090	$	478	$	(3,102	)	$	278,466

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities at June 30, 2018 by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Available for sale
Due in one year or less	$	7,792	$	7,785
Due after one year through five years		12,857		12,702
Due after five years through ten years		2,795		2,704
Mortgage-backed securities of government sponsored agencies		281,835		274,501
Total available for sale	$	305,279	$	297,692

Securities with Unrealized Losses in Continuous Unrealized Loss Position

Securities with unrealized losses at June 30, 2018 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:

	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S government sponsored agency securities	$	2,005	$	(31	)	$	12,018	$	(201	)	$	14,023	$	(232	)
U.S government sponsored agency MBS – residential		158,444		(3,866	)		48,235		(2,304	)		206,679		(6,170	)
U.S government sponsored agency CMO – residential		41,235		(417	)		15,843		(833	)		57,078		(1,250	)
Obligations of states and political subdivisions		4,016		(49	)		473		(8	)		4,489		(57	)
Total temporarily impaired	$	205,700	$	(4,363	)	$	76,569	$	(3,346	)	$	282,269	$	(7,709	)

Securities with unrealized losses at December 31, 2017 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:

	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S government sponsored agency securities	$	6,780	$	(41	)	$	10,335	$	(138	)	$	17,115	$	(179	)
U.S government sponsored agency MBS – residential		134,211		(1,076	)		47,682		(1,140	)		181,893		(2,216	)
U.S government sponsored agency CMO’s – residential		8,306		(64	)		17,868		(617	)		26,174		(681	)
Obligations of states and political subdivisions		3,512		(20	)		474		(6	)		3,986		(26	)
Total temporarily impaired	$	152,809	$	(1,201	)	$	76,359	$	(1,901	)	$	229,168	$	(3,102	)

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LOANS (Tables)

6 Months Ended

Jun. 30, 2018

LOANS [Abstract]

Major Classifications of Loans

Major classifications of loans at June 30, 2018 and December 31, 2017 are summarized as follows:

	2018		2017
Residential real estate	$	341,157	$	338,829
Multifamily real estate		58,154		62,151
Commercial real estate:
Owner occupied		136,795		136,048
Non-owner occupied		223,491		230,702
Commercial and industrial		78,358		78,259
Consumer		27,966		28,293
Construction and land		127,641		139,012
All other		34,091		35,758
	$	1,027,653	$	1,049,052

Activity in the Allowance for Loan Losses by Portfolio Segment

Activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2018 was as follows:

Loan Class	Balance Dec 31, 2017		Provision (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2018
Residential real estate	$	2,986	$	(609	)	$	(148	)	$	25	$	2,254
Multifamily real estate		978		(410	)		(11	)		-		557
Commercial real estate:
Owner occupied		1,653		266			(3	)		1		1,917
Non-owner occupied		2,313		140			(16	)		-		2,437
Commercial and industrial		1,101		976			(504	)		26		1,599
Consumer		328		51			(63	)		38		354
Construction and land		2,408		864			(19	)		-		3,253
All other		337		337			(130	)		67		611
Total	$	12,104	$	1,615		$	(894	)	$	157	$	12,982

Activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2017 was as follows:

Loan Class	Balance Dec 31, 2016		Provision (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2017
Residential real estate	$	2,948	$	193		$	(199	)	$	31	$	2,973
Multifamily real estate		785		552			-			-		1,337
Commercial real estate:
Owner occupied		1,543		(166	)		-			241		1,618
Non-owner occupied		2,350		(12	)		(4	)		-		2,334
Commercial and industrial		1,140		9			(134	)		78		1,093
Consumer		347		138			(165	)		53		373
Construction and land		1,397		392			(124	)		10		1,675
All other		326		36			(140	)		70		292
Total	$	10,836	$	1,142		$	(766	)	$	483	$	11,695

Activity in the allowance for loan losses by portfolio segment for the three months ended

June 30, 2018 was as follows:

Loan Class	Balance March 31, 2018		Provision (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2018
Residential real estate	$	2,262	$	82		$	(99	)	$	9	$	2,254
Multifamily real estate		647		(90	)		-			-		557
Commercial real estate:
Owner occupied		1,816		102			(1	)		-		1,917
Non-owner occupied		2,187		250			-			-		2,437
Commercial and industrial		1,651		163			(237	)		22		1,599
Consumer		369		2			(30	)		13		354
Construction and land		3,302		(49	)		-			-		3,253
All other		606		40			(63	)		28		611
Total	$	12,840	$	500		$	(430	)	$	72	$	12,982

Activity in the allowance for loan losses by portfolio segment for the three months ended

June 30, 2017 was as follows:

Loan Class	Balance March 31, 2017		Provision  (credit) for loan losses			Loans charged- off			Recoveries		Balance June 30, 2017
Residential real estate	$	2,977	$	64		$	(94	)	$	26	$	2,973
Multifamily real estate		770		567			-			-		1,337
Commercial real estate:
Owner occupied		1,576		(198	)		-			240		1,618
Non-owner occupied		2,422		(88	)		-			-		2,334
Commercial and industrial		1,129		43			(134	)		55		1,093
Consumer		370		22			(48	)		29		373
Construction and land		1,313		358			-			-		1,675
All other		332		9			(81	)		32		292
Total	$	10,894	$	776		$	(357	)	$	382	$	11,695

Purchased Impaired Loans

The carrying amount of those loans is as follows at June 30, 2018 and December 31, 2017.

	2018		2017
Residential real estate	$	1,109	$	1,321
Commercial real estate
Owner occupied		1,410		1,508
Commercial and industrial		6		211
Construction and land		1,305		1,450
All other		286		286
Total carrying amount	$	4,116	$	4,776
Contractual principal balance	$	5,765	$	6,728
Carrying amount, net of allowance	$	4,116	$	4,676

Purchase Loans Accretable Yield, or Income Expected to be Collected

The accretable yield, or income expected to be collected, on the purchased loans above is as follows at June 30, 2018 and June 30, 2017.

	2018			2017
Balance at January 1	$	754		$	1,208
New loans purchased		-			-
Accretion of income		(80	)		(206	)
Loans placed on non-accrual		(41	)		-
Income recognized upon full repayment		(38	)		(197	)
Reclassifications from non-accretable difference		-			-
Disposals		-			-
Balance at June 30	$	595		$	805

Past Due and Non-performing Loans

The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2018 and December 31, 2017.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

June 30, 2018	Principal Owed on Non-accrual Loans		Recorded Investment in Non-accrual Loans		Loans Past Due Over 90 Days, still accruing
Residential real estate	$	3,907	$	3,246	$	686
Multifamily real estate		1,984		1,972		-
Commercial real estate
Owner occupied		4,063		3,887		-
Non-owner occupied		1,635		1,573		2,889
Commercial and industrial		1,017		438		47
Consumer		233		205		-
Construction and land		4,803		4,711		27
All other		185		185		6
Total	$	17,827	$	16,217	$	3,655

December 31, 2017	Principal Owed on Non-accrual Loans		Recorded Investment in Non-accrual Loans		Loans Past Due Over 90 Days, still accruing
Residential real estate	$	2,944	$	2,422	$	869
Multifamily real estate		2,128		2,128		334
Commercial real estate
Owner occupied		2,623		2,483		134
Non-owner occupied		1,862		1,755		85
Commercial and industrial		1,313		544		1,139
Consumer		268		241		-
Construction and land		5,824		5,673		830
Total	$	16,962	$	15,246	$	3,391

Aging of Recorded Investment in Past Due Loans by Loan Class

The following table presents the aging of the recorded investment in past due loans as of June 30, 2018 by class of loans:

Loan Class	Total Loans		30-89 Days Past Due		Greater than 90 days past due		Total Past Due		Loans Not Past Due
Residential real estate	$	341,157	$	5,730	$	2,145	$	7,875	$	333,282
Multifamily real estate		58,154		106		1,972		2,078		56,076
Commercial real estate:
Owner occupied		136,795		249		1,512		1,761		135,034
Non-owner occupied		223,491		989		2,889		3,878		219,613
Commercial and industrial		78,358		56		239		295		78,063
Consumer		27,966		347		82		429		27,537
Construction and land		127,641		4,001		813		4,814		122,827
All other		34,091		-		191		191		33,900
Total	$	1,027,653	$	11,478	$	9,843	$	21,321	$	1,006,332

The following table presents the aging of the recorded investment in past due loans as of December 31, 2017 by class of loans:

Loan Class	Total Loans		30-89 Days Past Due		Greater than 90 days past due		Total Past Due		Loans Not Past Due
Residential real estate	$	338,829	$	5,242	$	1,835	$	7,077	$	331,752
Multifamily real estate		62,151		-		334		334		61,817
Commercial real estate:
Owner occupied		136,048		311		1,784		2,095		133,953
Non-owner occupied		230,702		12		225		237		230,465
Commercial and industrial		78,259		123		1,611		1,734		76,525
Consumer		28,293		492		87		579		27,714
Construction and land		139,012		144		2,508		2,652		136,360
All other		35,758		-		-		-		35,758
Total	$	1,049,052	$	6,324	$	8,384	$	14,708	$	1,034,344

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2018:

	Allowance for Loan Losses								Loan Balances
Loan Class	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total
Residential real estate	$	-	$	2,254	$	-	$	2,254	$	298	$	339,750	$	1,109	$	341,157
Multifamily real estate		72		485		-		557		1,972		56,182		-		58,154
Commercial real estate:
Owner occupied		400		1,517		-		1,917		3,054		132,331		1,410		136,795
Non-owner occupied		79		2,358		-		2,437		7,564		215,927		-		223,491
Commercial and industrial		64		1,535		-		1,599		539		77,813		6		78,358
Consumer		-		354		-		354		-		27,966		-		27,966
Construction and land		990		2,263				3,253		4,511		121,825		1,305		127,641
All other		-		611		-		611		283		33,522		286		34,091
Total	$	1,605	$	11,377	$	-	$	12,982	$	18,221	$	1,005,316	$	4,116	$	1,027,653

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2017:

	Allowance for Loan Losses								Loan Balances
Loan Class	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Acquired with Deteriorated Credit Quality		Total
Residential real estate	$	-	$	2,986	$	-	$	2,986	$	308	$	337,200	$	1,321	$	338,829
Multifamily real estate		218		760		-		978		2,462		59,689		-		62,151
Commercial real estate:
Owner occupied		307		1,346		-		1,653		3,314		131,226		1,508		136,048
Non-owner occupied		88		2,225		-		2,313		11,578		219,124		-		230,702
Commercial and industrial		104		897		100		1,101		1,304		76,744		211		78,259
Consumer		-		328		-		328		-		28,293		-		28,293
Construction and land		685		1,723		-		2,408		5,672		131,890		1,450		139,012
All other		-		337		-		337		293		35,179		286		35,758
Total	$	1,402	$	10,602	$	100	$	12,104	$	24,931	$	1,019,345	$	4,776	$	1,049,052

Loans Individually Evaluated for Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2018.  The table does not include any loans acquired with deteriorated credit quality.

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Residential real estate	$	434	$	298	$	-
Commercial real estate
Owner occupied		2,187		2,186		-
Non-owner occupied		5,611		5,557		-
Commercial and industrial		1,005		474		-
All other		284		284		-
		9,521		8,799		-
With an allowance recorded:
Multifamily real estate		1,984		1,972		72
Commercial real estate
Owner occupied		894		868		400
Non-owner occupied		2,007		2,007		79
Commercial and industrial		72		64		64
Construction and land		4,602		4,511		990
		9,559		9,422		1,605
Total	$	19,080	$	18,221	$	1,605

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2017.  The table includes $199,000 of loans acquired with deteriorated credit quality for which the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Residential real estate	$	446	$	308	$	-
Multifamily real estate		334		334		-
Commercial real estate
Owner occupied		2,451		2,439		-
Non-owner occupied		9,602		9,506		-
Commercial and industrial		1,719		1,188		-
Construction and land		1,798		1,678		-
All other		293		293		-
		16,643		15,746		-
With an allowance recorded:
Multifamily real estate	$	2,128	$	2,128	$	218
Commercial real estate
Owner occupied		895		875		307
Non-owner occupied		2,072		2,072		88
Commercial and industrial		466		315		204
Construction and land		4,024		3,994		685
		9,585		9,384		1,502
Total	$	26,228	$	25,130	$	1,502

Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized

The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the six months ended June 30, 2018 and June 30, 2017.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

	Six months ended June 30, 2018						Six months ended June 30, 2017
Loan Class	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Residential real estate	$	302	$	-	$	-	$	345	$	1	$	1
Multifamily real estate		2,287		11		11		13,611		130		121
Commercial real estate:
Owner occupied		3,208		51		51		3,211		22		22
Non-owner occupied		9,535		241		241		2,079		61		61
Commercial and industrial		1,145		16		16		1,523		101		101
Construction and land		4,703		3		3		8,822		280		277
All other		288		4		4		307		9		9
Total	$	21,468	$	326	$	326	$	29,898	$	604	$	592

The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended June 30, 2018 and June 30, 2017.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

	Three months ended June 30, 2018						Three months ended June 30, 2017
Loan Class	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Residential real estate	$	299	$	-	$	-	$	328	$	-	$	-
Multifamily real estate		2,199		1		1		13,596		65		59
Commercial real estate:
Owner occupied		3,154		26		26		3,417		16		16
Non-owner occupied		8,514		105		105		1,932		29		29
Commercial and industrial		966		8		8		1,471		27		27
Construction and land		4,218		3		3		6,900		48		46
All other		286		-		-		305		9		9
Total	$	19,636	$	143	$	143	$	27,949	$	194	$	186

Troubled Debt Restructurings

The following table presents TDR’s as of June 30, 2018 and December 31, 2017:

June 30, 2018	TDR’s on Non-accrual		Other TDR’s		Total TDR’s
Residential real estate	$	357	$	117	$	474
Multifamily real estate		1,972		-		1,972
Commercial real estate
Owner occupied		402		1,784		2,186
Non-owner occupied		-		6,029		6,029
Commercial and industrial		-		474		474
Construction and land		3,925		-		3,925
All other		-		284		284
Total	$	6,656	$	8,688	$	15,344

December 31, 2017	TDR’s on Non-accrual		Other TDR’s		Total TDR’s
Residential real estate	$	393	$	107	$	500
Multifamily real estate		2,128		-		2,128
Commercial real estate
Owner occupied		601		1,783		2,384
Non-owner occupied		-		9,904		9,904
Commercial and industrial		56		497		553
Construction and land		3,994		-		3,994
All other		-		293		293
Total	$	7,172	$	12,584	$	19,756

Troubled Debt Restructuring During the Period

The following table presents TDR’s that occurred during the three and six months ended June 30, 2017.

	Three months ended June 30, 2017						Six months ended June 30, 2017
Loan Class	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate
Owner occupied		2	$	1,525	$	1,525		2	$	1,525	$	1,525
Commercial & industrial		1		191		191		1		191		191
Total		3	$	1,716	$	1,716		3	$	1,716	$	1,716

Risk Category of Loans by Class of Loans

As of June 30, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class	Pass		Special Mention		Substandard		Doubtful		Total Loans
Residential real estate	$	331,254	$	1,120	$	8,783	$	-	$	341,157
Multifamily real estate		51,196		4,986		1,972		-		58,154
Commercial real estate:
Owner occupied		125,261		5,060		6,474		-		136,795
Non-owner occupied		212,252		3,018		8,221		-		223,491
Commercial and industrial		71,370		4,234		2,754		-		78,358
Consumer		27,616		-		350		-		27,966
Construction and land		112,956		8,647		6,038		-		127,641
All other		32,783		838		470		-		34,091
Total	$	964,688	$	27,903	$	35,062	$	-	$	1,027,653

As of December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class	Pass		Special Mention		Substandard		Doubtful		Total Loans
Residential real estate	$	327,185	$	667	$	10,976	$	1	$	338,829
Multifamily real estate		55,084		4,605		2,462		-		62,151
Commercial real estate:
Owner occupied		124,244		4,937		6,867		-		136,048
Non-owner occupied		216,079		2,428		12,195		-		230,702
Commercial and industrial		70,078		5,851		2,330		-		78,259
Consumer		27,889		-		404		-		28,293
Construction and land		126,323		5,460		7,229				139,012
All other		34,468		795		495		-		35,758
Total	$	981,350	$	24,743	$	42,958	$	1	$	1,049,052

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STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Tables)

6 Months Ended

Jun. 30, 2018

STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract]

Regulatory Capital Ratios

Shown below is a summary of regulatory capital ratios, exclusive of the capital conservation buffer, for the Company:

	June 30, 2018			December 31, 2017			Regulatory Minimum Requirements			To Be Considered Well Capitalized
Common Equity Tier 1 Capital (to Risk-Weighted Assets)		14.8	%		13.9	%		4.5	%		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)		15.3	%		14.4	%		6.0	%		8.0	%
Total Capital (to Risk-Weighted Assets)		16.6	%		15.6	%		8.0	%		10.0	%
Tier 1 Capital (to Average Assets)		10.9	%		10.7	%		4.0	%		5.0	%

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2018

EARNINGS PER SHARE [Abstract]

Reconciliation of Numerators and Denominators of the Earnings Per Share

A reconciliation of the numerators and denominators of the earnings per common share and earnings per common share assuming dilution computations for the three and six months ended June 30, 2018 and 2017 is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Basic earnings per share
Income available to common stockholders	$	4,375	$	3,919	$	9,508	$	7,583
Weighted average common shares outstanding		13,355,564		13,320,438		13,350,995		13,312,188
Earnings per share	$	0.33	$	0.29	$	0.71	$	0.57
Diluted earnings per share
Income available to common stockholders	$	4,375	$	3,919	$	9,508	$	7,583
Weighted average common shares outstanding		13,355,564		13,320,438		13,350,995		13,312,188
Add dilutive effects of potential additional common stock		106,593		111,230		91,381		103,925
Weighted average common and dilutive potential common shares outstanding		13,462,157		13,431,668		13,442,376		13,416,113
Earnings per share assuming dilution	$	0.32	$	0.29	$	0.71	$	0.57

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FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018 were as follows:

				Fair Value Measurements at June 30, 2018 Using
	Carrying Amount			Level 1			Level 2			Level 3		Total
Financial assets
Cash and due from banks	$	108,436		$	108,436		$	-		$	-	$	108,436
Time deposits with other banks		2,582			-			2,569			-		2,569
Federal funds sold		3,092			3,092			-			-		3,092
Securities available for sale		297,692			-			297,692			-		297,692
Loans, net		1,014,671			-			-			1,005,002		1,005,002
Federal Home Loan Bank stock		3,173			n/a			n/a			n/a		n/a
Interest receivable		3,764			-			763			3,001		3,764
Financial liabilities
Deposits	$	(1,294,156	)	$	(954,185	)	$	(333,058	)	$	-	$	(1,287,243	)
Securities sold under agreements to repurchase		(21,865	)		-			(21,865	)		-		(21,865	)
Other borrowed funds		(3,800	)		-			(3,747	)		-		(3,747	)
Subordinated debt		(5,391	)		-			(5,500	)		-		(5,500	)
Interest payable		(462	)		(10	)		(452	)		-		(462	)

The carrying amounts and estimated fair values of financial instruments at December 31, 2017 were as follows:

				Fair Value Measurements at December 31, 2017 Using
	Carrying Amount			Level 1			Level 2			Level 3		Total
Financial assets
Cash and due from banks	$	78,005		$	78,005		$	-		$	-	$	78,005
Time deposits with other banks		2,582			-			2,581			-		2,581
Federal funds sold		4,658			4,658			-			-		4,658
Securities available for sale		278,466			-			278,466			-		278,466
Loans, net		1,036,948			-			-			1,016,723		1,016,723
Federal Home Loan Bank stock		3,185			n/a			n/a			n/a		n/a
Interest receivable		4,043			-			700			3,343		4,043
Financial liabilities
Deposits	$	(1,272,675	)	$	(929,202	)	$	(338,291	)	$	-	$	(1,267,493	)
Securities sold under agreements to repurchase		(23,310	)		-			(23,310	)		-		(23,310	)
Other borrowed funds		(5,000	)		-			(4,955	)		-		(4,955	)
Subordinated debt		(5,376	)		-			(5,439	)		-		(5,439	)
Interest payable		(393	)		(7	)		(386	)		-		(393	)

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, 2018 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	$	208,468	$	-	$	208,468	$	-
U. S. agency CMO’s - residential		66,033		-		66,033		-
Total mortgage-backed securities of government sponsored agencies		274,501		-		274,501		-
U. S. government sponsored agency securities		14,023		-		14,023		-
Obligations of states and political subdivisions		9,168		-		9,168		-
Total securities available for sale	$	297,692	$	-	$	297,692	$	-

			Fair Value Measurements at December 31, 2017 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	$	196,590	$	-	$	196,590	$	-
U. S. agency CMO’s		51,108		-		51,108		-
Total mortgage-backed securities of government sponsored agencies		247,698		-		247,698		-
U. S. government sponsored agency securities		19,134		-		19,134		-
Obligations of states and political subdivisions		11,634		-		11,634		-
Total securities available for sale	$	278,466	$	-	$	278,466	$	-

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, 2018 are summarized below:

			Fair Value Measurements at June 30, 2018 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:
Multifamily real estate	$	1,900	$	-	$	-	$	1,900
Commercial real estate
Owner occupied		468		-		-		468
Non-owner occupied		1,928		-		-		1,928
Construction and land		3,521		-		-		3,521
Total impaired loans	$	7,817	$	-	$	-	$	7,817
Other real estate owned:
Residential real estate	$	372	$	-	$	-	$	372
Commercial real estate
Owner occupied		175		-		-		175
Non-owner occupied		200		-		-		200
Construction and land		150		-		-		150
Total OREO	$	897	$	-	$	-	$	897

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2017 are summarized below:

			Fair Value Measurements at December 31, 2017 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:
Multifamily real estate	$	1,910	$	-	$	-	$	1,910
Commercial real estate
Owner occupied		568		-		-		568
Non-owner occupied		1,984		-		-		1,984
Commercial and industrial		111		-		-		111
Construction and land		3,309		-		-		3,309
Total impaired loans	$	7,882	$	-	$	-	$	7,882
Other real estate owned:
Residential real estate	$	352	$	-	$	-	$	352
Commercial real estate
Owner occupied		175		-		-		175
Non-owner occupied		200		-		-		200
Construction and land		1,914		-		-		1,914
Total OREO	$	2,641	$	-	$	-	$	2,641

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, 2018 are summarized below:

	June 30, 2018		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Multifamily real estate	$	1,900	sales comparison	adjustment for estimated realizable value		46.7%-46.7% (46.7	%)
Commercial real estate
Owner occupied		468	sales comparison	adjustment for estimated realizable value		36.9%-36.9% (36.9	%)
Non-owner occupied		1,928	income approach	adjustment for differences in net operating income expectations		67.4%-67.4% (67.4	%)
Construction and land		3,521	sales comparison	adjustment for percentage of completion of construction		25.1%-35.8% (34.1	%)
Total impaired loans	$	7,817
Other real estate owned:
Residential real estate	$	372	sales comparison	adjustment for estimated realizable value		9.2%-19.2% (13.5	%)
Commercial real estate
Owner occupied		175	sales comparison	adjustment for estimated realizable value		21.8%-21.8% (21.8	%)
Non-owner occupied		200	sales comparison	adjustment for estimated realizable value		58.9%-58.9% (58.9	%)
Construction and land		150	sales comparison	adjustment for estimated realizable value		50.3%-50.3% (50.3	%)
Total OREO	$	897

The significant unobservable inputs related to assets and liabilities measured at fair value on a non-recurring basis at December 31, 2017 are summarized below:

	December 31, 2017		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Impaired loans:
Multifamily real estate	$	1,910	sales comparison	adjustment for estimated realizable value		46.0%-46.7% (46.4	%)
Commercial real estate
Owner occupied		568	sales comparison	adjustment for estimated realizable value		23.1%-23.1% (23.1	%)
Non-owner occupied		1,984	income approach	adjustment for differences in net operating income expectations		67.4%-67.4% (67.4	%)
Commercial and industrial		111	sales comparison	adjustment for estimated realizable value		8.0%-71.1% (64.2	%)
Construction and land		3,309	sales comparison	adjustment for percentage of completion of construction		27.7%-27.7% (27.7	%)
Total impaired loans	$	7,882
Other real estate owned:
Residential real estate	$	352	sales comparison	adjustment for estimated realizable value		8.8%-50.2% (20.0	%)
Commercial real estate
Owner occupied		175	sales comparison	adjustment for estimated realizable value		21.8%-21.8% (21.8	%)
Non-owner occupied		200	sales comparison	adjustment for estimated realizable value		58.9%-58.9% (58.9	%)
Construction and land		1,914	sales comparison	adjustment for estimated realizable value		25.2%-69.0% (27.8	%)
Total OREO	$	2,641

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BASIS OF PRESENTATION (Details) $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 08, 2018 shares	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract]
Total Assets		$ 1,514,300		$ 1,514,300		$ 1,493,424
Net Income		4,375	$ 3,919	$ 9,508	$ 7,583
Stock split ratio	1.25
Additional number of shares of common stock issued for every 4 shares of common stock already owned on record date (in shares) | shares	1
Citizens Deposit Bank & Trust [Member] | Vanceburg, Kentucky [Member]
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract]
Year Acquired				1991
Total Assets		429,714		$ 429,714
Net Income		1,394		$ 2,684
Premier Bank, Inc. [Member] | Huntington, West Virginia [Member]
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract]
Year Acquired				1998
Total Assets		1,077,580		$ 1,077,580
Net Income		3,592		8,078
Parent and Intercompany Eliminations [Member]
Accounts of the Company and its Wholly Owned Subsidiaries [Abstract]
Total Assets		7,006		7,006
Net Income		$ (611)		$ (1,254)

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SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Available-for-sale Investment securities [Abstract]
Available for sale, Amortized Cost	$ 305,279	$ 281,090
Unrealized gains	122	478
Unrealized losses	(7,709)	(3,102)
Fair value	297,692	278,466
U.S. Government Sponsored Agency MBS - Residential [Member]
Available-for-sale Investment securities [Abstract]
Available for sale, Amortized Cost	214,588	198,631
Unrealized gains	50	175
Unrealized losses	(6,170)	(2,216)
Fair value	208,468	196,590
U.S. Government Sponsored Agency CMO's - Residential [Member]
Available-for-sale Investment securities [Abstract]
Available for sale, Amortized Cost	67,247	51,548
Unrealized gains	36	241
Unrealized losses	(1,250)	(681)
Fair value	66,033	51,108
Total Mortgage-Backed Securities of Government Sponsored Agencies [Member]
Available-for-sale Investment securities [Abstract]
Available for sale, Amortized Cost	281,835	250,179
Unrealized gains	86	416
Unrealized losses	(7,420)	(2,897)
Fair value	274,501	247,698
U.S. Government Sponsored Agency Securities [Member]
Available-for-sale Investment securities [Abstract]
Available for sale, Amortized Cost	14,255	19,312
Unrealized gains	0	1
Unrealized losses	(232)	(179)
Fair value	14,023	19,134
Obligations of States and Political Subdivisions [Member]
Available-for-sale Investment securities [Abstract]
Available for sale, Amortized Cost	9,189	11,599
Unrealized gains	36	61
Unrealized losses	(57)	(26)
Fair value	$ 9,168	$ 11,634

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SECURITIES, By Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Amortized cost of available-for-sale securities by contractual maturity [Abstract]
Due in one year or less	$ 7,792
Due after one year through five years	12,857
Due after five years through ten years	2,795
Mortgage-backed securities of government sponsored agencies	281,835
Available for sale, Amortized Cost	305,279	$ 281,090
Fair value of available-for-sale securities by contractual maturity [Abstract]
Due in one year or less	7,785
Due after one year through five years	12,702
Due after five years through ten years	2,704
Mortgage backed securities of government sponsored agencies	274,501
Available for sale, Fair Value	$ 297,692	$ 278,466

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SECURITIES, Securities with Unrealized Losses in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Continuous unrealized loss position, fair value [Abstract]
Less than 12 months	$ 205,700	$ 152,809
12 months or more	76,569	76,359
Total	282,269	229,168
Continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(4,363)	(1,201)
12 months or more	(3,346)	(1,901)
Total	(7,709)	(3,102)
U.S. Government Sponsored Agency Securities [Member]
Continuous unrealized loss position, fair value [Abstract]
Less than 12 months	2,005	6,780
12 months or more	12,018	10,335
Total	14,023	17,115
Continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(31)	(41)
12 months or more	(201)	(138)
Total	(232)	(179)
U.S. Government Sponsored Agency MBS - Residential [Member]
Continuous unrealized loss position, fair value [Abstract]
Less than 12 months	158,444	134,211
12 months or more	48,235	47,682
Total	206,679	181,893
Continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(3,866)	(1,076)
12 months or more	(2,304)	(1,140)
Total	(6,170)	(2,216)
U.S. Government Sponsored Agency CMO's - Residential [Member]
Continuous unrealized loss position, fair value [Abstract]
Less than 12 months	41,235	8,306
12 months or more	15,843	17,868
Total	57,078	26,174
Continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(417)	(64)
12 months or more	(833)	(617)
Total	(1,250)	(681)
Obligations of States and Political Subdivisions [Member]
Continuous unrealized loss position, fair value [Abstract]
Less than 12 months	4,016	3,512
12 months or more	473	474
Total	4,489	3,986
Continuous unrealized loss position, unrealized loss [Abstract]
Less than 12 months	(49)	(20)
12 months or more	(8)	(6)
Total	$ (57)	$ (26)

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LOANS, Major Classifications of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Major Classifications of Loans [Abstract]
Loans	$ 1,027,653	$ 1,049,052
Residential Real Estate [Member]
Major Classifications of Loans [Abstract]
Loans	341,157	338,829
Multifamily Real Estate [Member]
Major Classifications of Loans [Abstract]
Loans	58,154	62,151
Commercial Real Estate [Member] | Owner Occupied [Member]
Major Classifications of Loans [Abstract]
Loans	136,795	136,048
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Major Classifications of Loans [Abstract]
Loans	223,491	230,702
Commercial and Industrial [Member]
Major Classifications of Loans [Abstract]
Loans	78,358	78,259
Consumer [Member]
Major Classifications of Loans [Abstract]
Loans	27,966	28,293
Construction and Land [Member]
Major Classifications of Loans [Abstract]
Loans	127,641	139,012
All Other [Member]
Major Classifications of Loans [Abstract]
Loans	$ 34,091	$ 35,758

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LOANS, Activity in Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	$ 12,840	$ 10,894	$ 12,104	$ 10,836
Provision (credit) for loan losses	500	776	1,615	1,142
Loans charged-off	(430)	(357)	(894)	(766)
Recoveries	72	382	157	483
Balance, end of period	12,982	11,695	12,982	11,695
Residential Real Estate [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	2,262	2,977	2,986	2,948
Provision (credit) for loan losses	82	64	(609)	193
Loans charged-off	(99)	(94)	(148)	(199)
Recoveries	9	26	25	31
Balance, end of period	2,254	2,973	2,254	2,973
Multifamily Real Estate [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	647	770	978	785
Provision (credit) for loan losses	(90)	567	(410)	552
Loans charged-off	0	0	(11)	0
Recoveries	0	0	0	0
Balance, end of period	557	1,337	557	1,337
Commercial Real Estate [Member] | Owner Occupied [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	1,816	1,576	1,653	1,543
Provision (credit) for loan losses	102	(198)	266	(166)
Loans charged-off	(1)	0	(3)	0
Recoveries	0	240	1	241
Balance, end of period	1,917	1,618	1,917	1,618
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	2,187	2,422	2,313	2,350
Provision (credit) for loan losses	250	(88)	140	(12)
Loans charged-off	0	0	(16)	(4)
Recoveries	0	0	0	0
Balance, end of period	2,437	2,334	2,437	2,334
Commercial and Industrial [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	1,651	1,129	1,101	1,140
Provision (credit) for loan losses	163	43	976	9
Loans charged-off	(237)	(134)	(504)	(134)
Recoveries	22	55	26	78
Balance, end of period	1,599	1,093	1,599	1,093
Consumer [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	369	370	328	347
Provision (credit) for loan losses	2	22	51	138
Loans charged-off	(30)	(48)	(63)	(165)
Recoveries	13	29	38	53
Balance, end of period	354	373	354	373
Construction and Land [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	3,302	1,313	2,408	1,397
Provision (credit) for loan losses	(49)	358	864	392
Loans charged-off	0	0	(19)	(124)
Recoveries	0	0	0	10
Balance, end of period	3,253	1,675	3,253	1,675
All Other [Member]
Activity in the allowance for loan losses by portfolio segment [Roll Forward]
Balance, beginning of period	606	332	337	326
Provision (credit) for loan losses	40	9	337	36
Loans charged-off	(63)	(81)	(130)	(140)
Recoveries	28	32	67	70
Balance, end of period	$ 611	$ 292	$ 611	$ 292

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LOANS, Purchased Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Purchased loans [Abstract]
Total carrying amount	$ 4,116		$ 4,776
Contractual principal balance	5,765		6,728
Carrying amount, net of allowance	4,116		4,676
Increase in loan allowance related to acquisitions	0	$ 50
Accretable Yield [Roll Forward]
Beginning Balance	754	1,208
New loans purchased	0	0
Accretion of income	(80)	(206)
Loans placed on non-accrual	(41)	0
Income recognized upon full repayment	(38)	(197)
Reclassifications from non-accretable difference	0	0
Disposals	0	0
Ending Balance	595	$ 805
Residential Real Estate [Member]
Purchased loans [Abstract]
Total carrying amount	1,109		1,321
Commercial Real Estate [Member] | Owner Occupied [Member]
Purchased loans [Abstract]
Total carrying amount	1,410		1,508
Commercial and Industrial [Member]
Purchased loans [Abstract]
Total carrying amount	6		211
Construction and Land [Member]
Purchased loans [Abstract]
Total carrying amount	1,305		1,450
All Other [Member]
Purchased loans [Abstract]
Total carrying amount	$ 286		$ 286

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LOANS, Past Due and Non-performing Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	$ 17,827	$ 16,962
Recorded investment in non-accrual loans	16,217	15,246
Loans past due over 90 days, still accruing	3,655	3,391
Residential Real Estate [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	3,907	2,944
Recorded investment in non-accrual loans	3,246	2,422
Loans past due over 90 days, still accruing	686	869
Multifamily Real Estate [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	1,984	2,128
Recorded investment in non-accrual loans	1,972	2,128
Loans past due over 90 days, still accruing	0	334
Commercial Real Estate [Member] | Owner Occupied [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	4,063	2,623
Recorded investment in non-accrual loans	3,887	2,483
Loans past due over 90 days, still accruing	0	134
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	1,635	1,862
Recorded investment in non-accrual loans	1,573	1,755
Loans past due over 90 days, still accruing	2,889	85
Commercial and Industrial [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	1,017	1,313
Recorded investment in non-accrual loans	438	544
Loans past due over 90 days, still accruing	47	1,139
Consumer [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	233	268
Recorded investment in non-accrual loans	205	241
Loans past due over 90 days, still accruing	0	0
Construction and Land [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	4,803	5,824
Recorded investment in non-accrual loans	4,711	5,673
Loans past due over 90 days, still accruing	27	$ 830
All Other [Member]
Past due and non-performing loans [Abstract]
Principal owed on non-accrual loans	185
Recorded investment in non-accrual loans	185
Loans past due over 90 days, still accruing	$ 6

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LOANS, Past Due Aging Analysis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Aging of recorded investment in past due loans [Abstract]
Total loans	$ 1,027,653	$ 1,049,052
Total past due	21,321	14,708
Loans not past due	1,006,332	1,034,344
30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	11,478	6,324
Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	9,843	8,384
Residential Real Estate [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	341,157	338,829
Total past due	7,875	7,077
Loans not past due	333,282	331,752
Residential Real Estate [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	5,730	5,242
Residential Real Estate [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	2,145	1,835
Multifamily Real Estate [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	58,154	62,151
Total past due	2,078	334
Loans not past due	56,076	61,817
Multifamily Real Estate [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	106	0
Multifamily Real Estate [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	1,972	334
Commercial Real Estate [Member] | Owner Occupied [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	136,795	136,048
Total past due	1,761	2,095
Loans not past due	135,034	133,953
Commercial Real Estate [Member] | Owner Occupied [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	249	311
Commercial Real Estate [Member] | Owner Occupied [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	1,512	1,784
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	223,491	230,702
Total past due	3,878	237
Loans not past due	219,613	230,465
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	989	12
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	2,889	225
Commercial and Industrial [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	78,358	78,259
Total past due	295	1,734
Loans not past due	78,063	76,525
Commercial and Industrial [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	56	123
Commercial and Industrial [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	239	1,611
Consumer [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	27,966	28,293
Total past due	429	579
Loans not past due	27,537	27,714
Consumer [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	347	492
Consumer [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	82	87
Construction and Land [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	127,641	139,012
Total past due	4,814	2,652
Loans not past due	122,827	136,360
Construction and Land [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	4,001	144
Construction and Land [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	813	2,508
All Other [Member]
Aging of recorded investment in past due loans [Abstract]
Total loans	34,091	35,758
Total past due	191	0
Loans not past due	33,900	35,758
All Other [Member] | 30-89 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	0	0
All Other [Member] | Greater Than 90 Days Past Due [Member]
Aging of recorded investment in past due loans [Abstract]
Total past due	$ 191	$ 0

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LOANS, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	$ 1,605		$ 1,402
Collectively evaluated for impairment, allowance for loan losses	11,377		10,602
Total allowance for loan losses	12,982	$ 12,840	12,104	$ 11,695	$ 10,894	$ 10,836
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	18,221		24,931
Collectively evaluated for impairment, loan balances	1,005,316		1,019,345
Total loans	1,027,653		1,049,052
Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		100
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances			199
Total loans	4,116		4,776
Residential Real Estate [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	0		0
Collectively evaluated for impairment, allowance for loan losses	2,254		2,986
Total allowance for loan losses	2,254	2,262	2,986	2,973	2,977	2,948
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	298		308
Collectively evaluated for impairment, loan balances	339,750		337,200
Total loans	341,157		338,829
Residential Real Estate [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		0
Loans Balances [Abstract]
Total loans	1,109		1,321
Multifamily Real Estate [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	72		218
Collectively evaluated for impairment, allowance for loan losses	485		760
Total allowance for loan losses	557	647	978	1,337	770	785
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	1,972		2,462
Collectively evaluated for impairment, loan balances	56,182		59,689
Total loans	58,154		62,151
Multifamily Real Estate [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		0
Loans Balances [Abstract]
Total loans	0		0
Commercial Real Estate [Member] | Owner Occupied [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	400		307
Collectively evaluated for impairment, allowance for loan losses	1,517		1,346
Total allowance for loan losses	1,917	1,816	1,653	1,618	1,576	1,543
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	3,054		3,314
Collectively evaluated for impairment, loan balances	132,331		131,226
Total loans	136,795		136,048
Commercial Real Estate [Member] | Owner Occupied [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		0
Loans Balances [Abstract]
Total loans	1,410		1,508
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	79		88
Collectively evaluated for impairment, allowance for loan losses	2,358		2,225
Total allowance for loan losses	2,437	2,187	2,313	2,334	2,422	2,350
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	7,564		11,578
Collectively evaluated for impairment, loan balances	215,927		219,124
Total loans	223,491		230,702
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		0
Loans Balances [Abstract]
Total loans	0		0
Commercial and Industrial [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	64		104
Collectively evaluated for impairment, allowance for loan losses	1,535		897
Total allowance for loan losses	1,599	1,651	1,101	1,093	1,129	1,140
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	539		1,304
Collectively evaluated for impairment, loan balances	77,813		76,744
Total loans	78,358		78,259
Commercial and Industrial [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		100
Loans Balances [Abstract]
Total loans	6		211
Consumer [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	0		0
Collectively evaluated for impairment, allowance for loan losses	354		328
Total allowance for loan losses	354	369	328	373	370	347
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	0		0
Collectively evaluated for impairment, loan balances	27,966		28,293
Total loans	27,966		28,293
Consumer [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		0
Loans Balances [Abstract]
Total loans	0		0
Construction and Land [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	990		685
Collectively evaluated for impairment, allowance for loan losses	2,263		1,723
Total allowance for loan losses	3,253	3,302	2,408	1,675	1,313	1,397
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	4,511		5,672
Collectively evaluated for impairment, loan balances	121,825		131,890
Total loans	127,641		139,012
Construction and Land [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		0
Loans Balances [Abstract]
Total loans	1,305		1,450
All Other [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment, allowance for loan losses	0		0
Collectively evaluated for impairment, allowance for loan losses	611		337
Total allowance for loan losses	611	$ 606	337	$ 292	$ 332	$ 326
Loans Balances [Abstract]
Individually evaluated for impairment, loan balances	283		293
Collectively evaluated for impairment, loan balances	33,522		35,179
Total loans	34,091		35,758
All Other [Member] | Acquired with Deteriorated Credit Quality [Member]
Allowance for Loan Losses [Abstract]
Total allowance for loan losses	0		0
Loans Balances [Abstract]
Total loans	$ 286		$ 286

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LOANS, Individually Evaluated For Impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded	$ 9,521	$ 16,643
Unpaid principal balance with an allowance recorded	9,559	9,585
Unpaid principal balance, total	19,080	26,228
Recorded investment with no related allowance recorded	8,799	15,746
Recorded investment with an allowance recorded	9,422	9,384
Recorded investment, total	18,221	25,130
Allowance for loan losses allocated	1,605	1,502
Purchased financing receivable individually evaluated for impairment	18,221	24,931
Acquired with Deteriorated Credit Quality [Member]
Loans individually evaluated for impairment [Abstract]
Purchased financing receivable individually evaluated for impairment		199
Residential Real Estate [Member]
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded	434	446
Recorded investment with no related allowance recorded	298	308
Purchased financing receivable individually evaluated for impairment	298	308
Multifamily Real Estate [Member]
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded		334
Unpaid principal balance with an allowance recorded	1,984	2,128
Recorded investment with no related allowance recorded		334
Recorded investment with an allowance recorded	1,972	2,128
Allowance for loan losses allocated	72	218
Purchased financing receivable individually evaluated for impairment	1,972	2,462
Commercial Real Estate [Member] | Owner Occupied [Member]
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded	2,187	2,451
Unpaid principal balance with an allowance recorded	894	895
Recorded investment with no related allowance recorded	2,186	2,439
Recorded investment with an allowance recorded	868	875
Allowance for loan losses allocated	400	307
Purchased financing receivable individually evaluated for impairment	3,054	3,314
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded	5,611	9,602
Unpaid principal balance with an allowance recorded	2,007	2,072
Recorded investment with no related allowance recorded	5,557	9,506
Recorded investment with an allowance recorded	2,007	2,072
Allowance for loan losses allocated	79	88
Purchased financing receivable individually evaluated for impairment	7,564	11,578
Commercial and Industrial [Member]
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded	1,005	1,719
Unpaid principal balance with an allowance recorded	72	466
Recorded investment with no related allowance recorded	474	1,188
Recorded investment with an allowance recorded	64	315
Allowance for loan losses allocated	64	204
Purchased financing receivable individually evaluated for impairment	539	1,304
Consumer [Member]
Loans individually evaluated for impairment [Abstract]
Purchased financing receivable individually evaluated for impairment	0	0
Construction and Land [Member]
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded		1,798
Unpaid principal balance with an allowance recorded	4,602	4,024
Recorded investment with no related allowance recorded		1,678
Recorded investment with an allowance recorded	4,511	3,994
Allowance for loan losses allocated	990	685
Purchased financing receivable individually evaluated for impairment	4,511	5,672
All Other [Member]
Loans individually evaluated for impairment [Abstract]
Unpaid principal balance with no related allowance recorded	284	293
Recorded investment with no related allowance recorded	284	293
Purchased financing receivable individually evaluated for impairment	$ 283	$ 293

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LOANS, Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	$ 19,636	$ 27,949	$ 21,468	$ 29,898
Interest income recognized	143	194	326	604
Cash basis interest recognized	143	186	326	592
Residential Real Estate [Member]
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	299	328	302	345
Interest income recognized	0	0	0	1
Cash basis interest recognized	0	0	0	1
Multifamily Real Estate [Member]
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	2,199	13,596	2,287	13,611
Interest income recognized	1	65	11	130
Cash basis interest recognized	1	59	11	121
Commercial Real Estate [Member] | Owner Occupied [Member]
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	3,154	3,417	3,208	3,211
Interest income recognized	26	16	51	22
Cash basis interest recognized	26	16	51	22
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	8,514	1,932	9,535	2,079
Interest income recognized	105	29	241	61
Cash basis interest recognized	105	29	241	61
Commercial and Industrial [Member]
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	966	1,471	1,145	1,523
Interest income recognized	8	27	16	101
Cash basis interest recognized	8	27	16	101
Construction and Land [Member]
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	4,218	6,900	4,703	8,822
Interest income recognized	3	48	3	280
Cash basis interest recognized	3	46	3	277
All Other [Member]
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized [Abstract]
Average recorded investment	286	305	288	307
Interest income recognized	0	9	4	9
Cash basis interest recognized	$ 0	$ 9	$ 4	$ 9

XML

LOANS, Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	$ 6,656		$ 6,656		$ 7,172
Other TDR's	8,688		8,688		12,584
Total TDR's	15,344		15,344		19,756
Specific reserves allocated to loans that have restructured terms	1,136		1,136		1,029
Provision for loan losses on restructured loans	(216)	$ 0	163	$ 0
Commitments to lend additional amounts to borrowers	0		0		0
Residential Real Estate [Member]
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	357		357		393
Other TDR's	117		117		107
Total TDR's	474		474		500
Multifamily Real Estate [Member]
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	1,972		1,972		2,128
Other TDR's	0		0		0
Total TDR's	1,972		1,972		2,128
Commercial Real Estate [Member] | Owner Occupied [Member]
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	402		402		601
Other TDR's	1,784		1,784		1,783
Total TDR's	2,186		2,186		2,384
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	0		0		0
Other TDR's	6,029		6,029		9,904
Total TDR's	6,029		6,029		9,904
Commercial and Industrial [Member]
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	0		0		56
Other TDR's	474		474		497
Total TDR's	474		474		553
Construction and Land [Member]
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	3,925		3,925		3,994
Other TDR's	0		0		0
Total TDR's	3,925		3,925		3,994
All Other [Member]
Troubled Debt Restructurings [Abstract]
TDR's on Non-accrual	0		0		0
Other TDR's	284		284		293
Total TDR's	$ 284		$ 284		$ 293

XML

LOANS, TDR's Modified During Period (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) Loan	Jun. 30, 2017 USD ($) Loan	Jun. 30, 2018 USD ($) Loan	Jun. 30, 2017 USD ($) Loan
TDR's Modified During Period [Abstract]
Number of loans | Loan	0	3	0	3
Pre-modification outstanding recorded investment		$ 1,716		$ 1,716
Post-modification outstanding recorded investment		1,716		1,716
Increase in allowance for loan losses		0		0
TDR's with payment defaults within 12 months after modification	$ 0	$ 0	$ 0	$ 0
Commercial Real Estate [Member] | Owner Occupied [Member]
TDR's Modified During Period [Abstract]
Number of loans | Loan		2		2
Pre-modification outstanding recorded investment		$ 1,525		$ 1,525
Post-modification outstanding recorded investment		$ 1,525		$ 1,525
Commercial and Industrial [Member]
TDR's Modified During Period [Abstract]
Number of loans | Loan		1		1
Pre-modification outstanding recorded investment		$ 191		$ 191
Post-modification outstanding recorded investment		$ 191		$ 191

XML

LOANS, Risk Category of Loans by Class of Loans, Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Risk Category of Loans by Class of Loans [Abstract]
Loans	$ 1,027,653	$ 1,049,052
Residential Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	341,157	338,829
Multifamily Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	58,154	62,151
Commercial Real Estate [Member] | Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	136,795	136,048
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	223,491	230,702
Commercial and Industrial [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	78,358	78,259
Consumer [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	27,966	28,293
Construction and Land [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	127,641	139,012
All Other [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	34,091	35,758
Pass [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	964,688	981,350
Pass [Member] | Residential Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	331,254	327,185
Pass [Member] | Multifamily Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	51,196	55,084
Pass [Member] | Commercial Real Estate [Member] | Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	125,261	124,244
Pass [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	212,252	216,079
Pass [Member] | Commercial and Industrial [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	71,370	70,078
Pass [Member] | Consumer [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	27,616	27,889
Pass [Member] | Construction and Land [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	112,956	126,323
Pass [Member] | All Other [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	32,783	34,468
Special Mention [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	27,903	24,743
Special Mention [Member] | Residential Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	1,120	667
Special Mention [Member] | Multifamily Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	4,986	4,605
Special Mention [Member] | Commercial Real Estate [Member] | Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	5,060	4,937
Special Mention [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	3,018	2,428
Special Mention [Member] | Commercial and Industrial [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	4,234	5,851
Special Mention [Member] | Consumer [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	0
Special Mention [Member] | Construction and Land [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	8,647	5,460
Special Mention [Member] | All Other [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	838	795
Substandard [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	35,062	42,958
Substandard [Member] | Residential Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	8,783	10,976
Substandard [Member] | Multifamily Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	1,972	2,462
Substandard [Member] | Commercial Real Estate [Member] | Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	6,474	6,867
Substandard [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	8,221	12,195
Substandard [Member] | Commercial and Industrial [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	2,754	2,330
Substandard [Member] | Consumer [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	350	404
Substandard [Member] | Construction and Land [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	6,038	7,229
Substandard [Member] | All Other [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	470	495
Doubtful [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	1
Doubtful [Member] | Residential Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	1
Doubtful [Member] | Multifamily Real Estate [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	0
Doubtful [Member] | Commercial Real Estate [Member] | Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	0
Doubtful [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	0
Doubtful [Member] | Commercial and Industrial [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	0
Doubtful [Member] | Consumer [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	0
Doubtful [Member] | Construction and Land [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	0	0
Doubtful [Member] | All Other [Member]
Risk Category of Loans by Class of Loans [Abstract]
Loans	$ 0	$ 0

XML

STOCKHOLDERS' EQUITY AND REGULATORY MATTERS (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS [Abstract]
Number of previous years retained profit taken for dividend calculation	2 years
Funds available for dividends without prior approval	$ 7.7
Common Equity Tier 1 Capital (to Risk-Weighted Assets)	14.80%	13.90%
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Regulatory Minimum Requirements	4.50%
Common Equity Tier 1 Capital (to Risk-Weighted Assets), To Be Considered Well Capitalized	6.50%
Tier I Capital (to Risk-Weighted Assets)	15.30%	14.40%
Tier I Capital (to Risk-Weighted Assets), Regulatory Minimum Requirements	6.00%
Tier I Capital (to Risk-Weighted Assets), To Be Considered Well Capitalized	8.00%
Total Capital (to Risk-Weighted Assets)	16.60%	15.60%
Total Capital (to Risk-Weighted Assets), Regulatory Minimum Requirements	8.00%
Total Capital (to Risk-Weighted Assets), To Be Considered Well Capitalized	10.00%
Tier I Capital (to Average Assets)	10.90%	10.70%
Tier I Capital (to Average Assets), Regulatory Minimum Requirements	4.00%
Tier I Capital (to Average Assets), To Be Considered Well Capitalized	5.00%
Capital conservation buffer	8.56%	7.56%

XML

STOCK COMPENSATION EXPENSE (Details) - USD ($) $ / shares in Units, $ in Thousands					6 Months Ended
	Apr. 25, 2018	Mar. 21, 2018	Apr. 19, 2017	Mar. 15, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock Compensation Expense [Abstract]
Compensation expense					$ 181	$ 169
Unrecognized stock-based compensation expense					$ 173
Unrecognized stock-based compensation, period of recognition					32 months
2012 Long Term Incentive Plan [Member] | Stock Options [Member]
Stock Compensation Expense [Abstract]
Grants (in shares)		67,875		69,375
Grants (in dollars per share)		$ 15.12		$ 15.21
2012 Long Term Incentive Plan [Member] | Stock Options [Member] | Granted On March 21 2018 [Member]
Stock Compensation Expense [Abstract]
Stock option vesting periods					3 years
2012 Long Term Incentive Plan [Member] | Stock Options [Member] | Granted on March 15, 2017 [Member]
Stock Compensation Expense [Abstract]
Stock option vesting periods					3 years
2012 Long Term Incentive Plan [Member] | President and CEO [Member] | Common Stock [Member]
Stock Compensation Expense [Abstract]
Stock granted (in shares)	7,500		7,500
Fair value of shares granted (in dollars per share)	$ 15.82		$ 16.56
Compensation expense	$ 119		$ 124

XML

EARNINGS PER SHARE (Details) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 08, 2018 shares	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2017 USD ($) $ / shares shares
Basic earnings per share [Abstract]
Income available to common stockholders | $		$ 4,375	$ 3,919	$ 9,508	$ 7,583
Weighted average common shares outstanding (in shares)		13,355,564	13,320,438	13,350,995	13,312,188
Earnings per share (in dollars per share) | $ / shares		$ 0.33	$ 0.29	$ 0.71	$ 0.57
Diluted earnings per share [Abstract]
Income available to common stockholders | $		$ 4,375	$ 3,919	$ 9,508	$ 7,583
Weighted average common shares outstanding (in shares)		13,355,564	13,320,438	13,350,995	13,312,188
Add dilutive effects of potential additional common stock (in shares)		106,593	111,230	91,381	103,925
Weighted average common and dilutive potential common shares outstanding (in shares)		13,462,157	13,431,668	13,442,376	13,416,113
Earnings per share assuming dilution (in dollars per share) | $ / shares		$ 0.32	$ 0.29	$ 0.71	$ 0.57
Earnings Per Share [Abstract]
Stock split ratio	1.25
Additional number of shares of common stock issued for every 4 shares of common stock already owned on record date (in shares)	1
Stock Options [Member]
Earnings Per Share [Abstract]
Securities not considered in computing diluted earnings per share (in shares)		0	0	0	0

XML

FAIR VALUE, Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets [Abstract]
Securities available for sale	$ 297,692	$ 278,466
Carrying Amount [Member]
Financial assets [Abstract]
Cash and due from banks	108,436	78,005
Time deposits with other banks	2,582	2,582
Federal funds sold	3,092	4,658
Securities available for sale	297,692	278,466
Loans, net	1,014,671	1,036,948
Federal Home Loan Bank stock	3,173	3,185
Interest receivable	3,764	4,043
Financial liabilities [Abstract]
Deposits	(1,294,156)	(1,272,675)
Securities sold under agreements to repurchase	(21,865)	(23,310)
Other borrowed funds	(3,800)	(5,000)
Subordinated Debt	(5,391)	(5,376)
Interest payable	(462)	(393)
Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	108,436	78,005
Time deposits with other banks	2,569	2,581
Federal funds sold	3,092	4,658
Securities available for sale	297,692	278,466
Loans, net	1,005,002	1,016,723
Interest receivable	3,764	4,043
Financial liabilities [Abstract]
Deposits	(1,287,243)	(1,267,493)
Securities sold under agreements to repurchase	(21,865)	(23,310)
Other borrowed funds	(3,747)	(4,955)
Subordinated Debt	(5,500)	(5,439)
Interest payable	(462)	(393)
Fair Value [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and due from banks	108,436	78,005
Time deposits with other banks	0	0
Federal funds sold	3,092	4,658
Securities available for sale	0	0
Loans, net	0	0
Interest receivable	0	0
Financial liabilities [Abstract]
Deposits	(954,185)	(929,202)
Securities sold under agreements to repurchase	0	0
Other borrowed funds	0	0
Subordinated Debt	0	0
Interest payable	(10)	(7)
Fair Value [Member] | Level 2 [Member]
Financial assets [Abstract]
Cash and due from banks	0	0
Time deposits with other banks	2,569	2,581
Federal funds sold	0	0
Securities available for sale	297,692	278,466
Loans, net	0	0
Interest receivable	763	700
Financial liabilities [Abstract]
Deposits	(333,058)	(338,291)
Securities sold under agreements to repurchase	(21,865)	(23,310)
Other borrowed funds	(3,747)	(4,955)
Subordinated Debt	(5,500)	(5,439)
Interest payable	(452)	(386)
Fair Value [Member] | Level 3 [Member]
Financial assets [Abstract]
Cash and due from banks	0	0
Time deposits with other banks	0	0
Federal funds sold	0	0
Securities available for sale	0	0
Loans, net	1,005,002	1,016,723
Interest receivable	3,001	3,343
Financial liabilities [Abstract]
Deposits	0	0
Securities sold under agreements to repurchase	0	0
Other borrowed funds	0	0
Subordinated Debt	0	0
Interest payable	$ 0	$ 0

XML

FAIR VALUE, Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Available for sale [Abstract]
Securities available for sale	$ 297,692	$ 278,466
Carrying Value [Member]
Available for sale [Abstract]
Securities available for sale	297,692	278,466
Fair Value [Member]
Available for sale [Abstract]
Securities available for sale	297,692	278,466
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale [Abstract]
Securities available for sale	297,692	278,466
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
U.S. Agency MBS - Residential [Member]
Available for sale [Abstract]
Securities available for sale	208,468	196,590
U.S. Agency CMO's - Residential [Member]
Available for sale [Abstract]
Securities available for sale	66,033	51,108
Total Mortgage-Backed Securities of Government Sponsored Agencies [Member]
Available for sale [Abstract]
Securities available for sale	274,501	247,698
U.S. Government Sponsored Agency Securities [Member]
Available for sale [Abstract]
Securities available for sale	14,023	19,134
Obligations of States and Political Subdivisions [Member]
Available for sale [Abstract]
Securities available for sale	9,168	11,634
Recurring [Member] | Carrying Value [Member]
Available for sale [Abstract]
Securities available for sale	297,692	278,466
Recurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale [Abstract]
Securities available for sale	297,692	278,466
Recurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | U.S. Agency MBS - Residential [Member] | Carrying Value [Member]
Available for sale [Abstract]
Securities available for sale	208,468	196,590
Recurring [Member] | U.S. Agency MBS - Residential [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | U.S. Agency MBS - Residential [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale [Abstract]
Securities available for sale	208,468	196,590
Recurring [Member] | U.S. Agency MBS - Residential [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | U.S. Agency CMO's - Residential [Member] | Carrying Value [Member]
Available for sale [Abstract]
Securities available for sale	66,033	51,108
Recurring [Member] | U.S. Agency CMO's - Residential [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | U.S. Agency CMO's - Residential [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale [Abstract]
Securities available for sale	66,033	51,108
Recurring [Member] | U.S. Agency CMO's - Residential [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | Total Mortgage-Backed Securities of Government Sponsored Agencies [Member] | Carrying Value [Member]
Available for sale [Abstract]
Securities available for sale	274,501	247,698
Recurring [Member] | Total Mortgage-Backed Securities of Government Sponsored Agencies [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | Total Mortgage-Backed Securities of Government Sponsored Agencies [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale [Abstract]
Securities available for sale	274,501	247,698
Recurring [Member] | Total Mortgage-Backed Securities of Government Sponsored Agencies [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | U.S. Government Sponsored Agency Securities [Member] | Carrying Value [Member]
Available for sale [Abstract]
Securities available for sale	14,023	19,134
Recurring [Member] | U.S. Government Sponsored Agency Securities [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | U.S. Government Sponsored Agency Securities [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale [Abstract]
Securities available for sale	14,023	19,134
Recurring [Member] | U.S. Government Sponsored Agency Securities [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Carrying Value [Member]
Available for sale [Abstract]
Securities available for sale	9,168	11,634
Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale [Abstract]
Securities available for sale	9,168	11,634
Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available for sale [Abstract]
Securities available for sale	$ 0	$ 0

XML

FAIR VALUE, Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Assets [Abstract]
Total impaired loans	$ 7,817		$ 7,817		$ 7,882
Total OREO	897		897		2,641
Impaired Loans, Additional Disclosure [Abstract]
Recorded investment in impaired loans carried at fair value	9,423		9,423		9,384
Valuation allowance for impaired loans	1,605		1,605		1,502
Impaired collateral dependent loans, provision for loan losses	(187)	$ 678	520	$ 763
Other Real Estate Owned, Additional Disclosure [Abstract]
Recorded investment in other real estate owned carried at fair value - gross	1,638		1,638		4,082
Valuation allowance for other real estate owned	741		741		1,441
Write downs	120	$ 324	120	$ 363
Residential Real Estate [Member]
Assets [Abstract]
Total OREO	372		372		352
Multifamily Real Estate [Member]
Assets [Abstract]
Total impaired loans	1,900		1,900		1,910
Impaired Loans, Additional Disclosure [Abstract]
Valuation allowance for impaired loans	72		72		218
Commercial Real Estate [Member] | Owner Occupied [Member]
Assets [Abstract]
Total impaired loans	468		468		568
Total OREO	175		175		175
Impaired Loans, Additional Disclosure [Abstract]
Valuation allowance for impaired loans	400		400		307
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Assets [Abstract]
Total impaired loans	1,928		1,928		1,984
Total OREO	200		200		200
Impaired Loans, Additional Disclosure [Abstract]
Valuation allowance for impaired loans	79		79		88
Commercial and Industrial [Member]
Assets [Abstract]
Total impaired loans					111
Impaired Loans, Additional Disclosure [Abstract]
Valuation allowance for impaired loans	64		64		204
Construction and Land [Member]
Assets [Abstract]
Total impaired loans	3,521		3,521		3,309
Total OREO	150		150		1,914
Impaired Loans, Additional Disclosure [Abstract]
Valuation allowance for impaired loans	990		990		685
Nonrecurring [Member] | Carrying Amount [Member]
Assets [Abstract]
Total impaired loans	7,817		7,817		7,882
Total OREO	897		897		2,641
Nonrecurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total impaired loans	7,817		7,817		7,882
Total OREO	897		897		2,641
Nonrecurring [Member] | Residential Real Estate [Member] | Carrying Amount [Member]
Assets [Abstract]
Total OREO	372		372		352
Nonrecurring [Member] | Residential Real Estate [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Total OREO	0		0		0
Nonrecurring [Member] | Residential Real Estate [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total OREO	0		0		0
Nonrecurring [Member] | Residential Real Estate [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total OREO	372		372		352
Nonrecurring [Member] | Multifamily Real Estate [Member] | Carrying Amount [Member]
Assets [Abstract]
Total impaired loans	1,900		1,900		1,910
Nonrecurring [Member] | Multifamily Real Estate [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Nonrecurring [Member] | Multifamily Real Estate [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Nonrecurring [Member] | Multifamily Real Estate [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total impaired loans	1,900		1,900		1,910
Nonrecurring [Member] | Commercial Real Estate [Member] | Owner Occupied [Member] | Carrying Amount [Member]
Assets [Abstract]
Total impaired loans	468		468		568
Total OREO	175		175		175
Nonrecurring [Member] | Commercial Real Estate [Member] | Owner Occupied [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Commercial Real Estate [Member] | Owner Occupied [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Commercial Real Estate [Member] | Owner Occupied [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total impaired loans	468		468		568
Total OREO	175		175		175
Nonrecurring [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Carrying Amount [Member]
Assets [Abstract]
Total impaired loans	1,928		1,928		1,984
Total OREO	200		200		200
Nonrecurring [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total impaired loans	1,928		1,928		1,984
Total OREO	200		200		200
Nonrecurring [Member] | Commercial and Industrial [Member] | Carrying Amount [Member]
Assets [Abstract]
Total impaired loans					111
Nonrecurring [Member] | Commercial and Industrial [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Total impaired loans					0
Nonrecurring [Member] | Commercial and Industrial [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total impaired loans					0
Nonrecurring [Member] | Commercial and Industrial [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total impaired loans					111
Nonrecurring [Member] | Construction and Land [Member] | Carrying Amount [Member]
Assets [Abstract]
Total impaired loans	3,521		3,521		3,309
Total OREO	150		150		1,914
Nonrecurring [Member] | Construction and Land [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Construction and Land [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total impaired loans	0		0		0
Total OREO	0		0		0
Nonrecurring [Member] | Construction and Land [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total impaired loans	3,521		3,521		3,309
Total OREO	$ 150		$ 150		$ 1,914

XML

FAIR VALUE, Asset Quantitative Information (Details) $ in Thousands	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans	$ 7,817	$ 7,882
Other real estate owned	897	2,641
Multifamily Real Estate [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans	$ 1,900	$ 1,910
Multifamily Real Estate [Member] | Sales Comparison [Member] | Minimum [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.467	0.460
Multifamily Real Estate [Member] | Sales Comparison [Member] | Maximum [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.467	0.467
Multifamily Real Estate [Member] | Sales Comparison [Member] | Weighted Average [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.467	0.464
Residential Real Estate [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned	$ 372	$ 352
Other real estate owned, valuation technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other real estate owned, measurement input [Extensible List]	us-gaap:MeasurementInputComparabilityAdjustmentMember	us-gaap:MeasurementInputComparabilityAdjustmentMember
Residential Real Estate [Member] | Minimum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.092	0.088
Residential Real Estate [Member] | Maximum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.192	0.502
Residential Real Estate [Member] | Weighted Average [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.135	0.200
Commercial Real Estate [Member] | Owner Occupied [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans	$ 468	$ 568
Other real estate owned	$ 175	$ 175
Other real estate owned, valuation technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other real estate owned, measurement input [Extensible List]	us-gaap:MeasurementInputComparabilityAdjustmentMember	us-gaap:MeasurementInputComparabilityAdjustmentMember
Commercial Real Estate [Member] | Owner Occupied [Member] | Minimum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.218	0.218
Commercial Real Estate [Member] | Owner Occupied [Member] | Maximum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.218	0.218
Commercial Real Estate [Member] | Owner Occupied [Member] | Weighted Average [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.218	0.218
Commercial Real Estate [Member] | Owner Occupied [Member] | Sales Comparison [Member] | Minimum [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.369	0.231
Commercial Real Estate [Member] | Owner Occupied [Member] | Sales Comparison [Member] | Maximum [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.369	0.231
Commercial Real Estate [Member] | Owner Occupied [Member] | Sales Comparison [Member] | Weighted Average [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.369	0.231
Commercial Real Estate [Member] | Non-Owner Occupied [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans	$ 1,928	$ 1,984
Other real estate owned	$ 200	$ 200
Other real estate owned, valuation technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other real estate owned, measurement input [Extensible List]	us-gaap:MeasurementInputComparabilityAdjustmentMember	us-gaap:MeasurementInputComparabilityAdjustmentMember
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Minimum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.589	0.589
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Maximum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.589	0.589
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Weighted Average [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.589	0.589
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Income Approach [Member] | Minimum [Member] | Adjustment for Differences in Net Operating Income Expectations [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.674	0.674
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Income Approach [Member] | Maximum [Member] | Adjustment for Differences in Net Operating Income Expectations [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.674	0.674
Commercial Real Estate [Member] | Non-Owner Occupied [Member] | Income Approach [Member] | Weighted Average [Member] | Adjustment for Differences in Net Operating Income Expectations [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.674	0.674
Commercial and Industrial [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans		$ 111
Commercial and Industrial [Member] | Sales Comparison [Member] | Minimum [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs		0.080
Commercial and Industrial [Member] | Sales Comparison [Member] | Maximum [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs		0.711
Commercial and Industrial [Member] | Sales Comparison [Member] | Weighted Average [Member] | Adjustment for Estimated Realizable Value [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs		0.642
Construction and Land [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans	$ 3,521	$ 3,309
Other real estate owned	$ 150	$ 1,914
Other real estate owned, valuation technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other real estate owned, measurement input [Extensible List]	us-gaap:MeasurementInputComparabilityAdjustmentMember	us-gaap:MeasurementInputComparabilityAdjustmentMember
Construction and Land [Member] | Minimum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.503	0.252
Construction and Land [Member] | Maximum [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.503	0.690
Construction and Land [Member] | Weighted Average [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Other real estate owned, unobservable inputs	0.503	0.278
Construction and Land [Member] | Sales Comparison [Member] | Minimum [Member] | Adjustment for Percentage of Completion of Construction [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.251	0.277
Construction and Land [Member] | Sales Comparison [Member] | Maximum [Member] | Adjustment for Percentage of Completion of Construction [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.358	0.277
Construction and Land [Member] | Sales Comparison [Member] | Weighted Average [Member] | Adjustment for Percentage of Completion of Construction [Member]
Significant Unobservable Inputs Related to Assets and Liabilities Measured at Fair Value [Abstract]
Impaired loans, unobservable inputs	0.341	0.277

XML

PENDING ACQUISITION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		6 Months Ended
	Apr. 18, 2018	Jun. 30, 2018
Merger Agreement [Abstract]
Cash to be issued in acquisition (in dollars per share)	$ 5.00
Closing price (in dollars per share)	$ 19.51
Consecutive trading days		20 days
First Bank of Charleston, Inc [Member]
Merger Agreement [Abstract]
Assets to be acquired	$ 180.0
Consideration to be transferred	$ 33.0
Price of common stock and cash to be issued (in dollars per share)	$ 32.00
Special dividend to be issued in acquisition (in dollars per share)	$ 5.00
Number of shares to be issued in acquisition (in shares)	1,165