LOANS AND ASSET QUALITY (Tables)

6 Months Ended

Jun. 30, 2017

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans

At June 30, 2017					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Commercial and industrial	$	3,690	$	49	$	-	$	-	$	3,739
Commercial real estate		65,015		-		-		640		65,655
Consumer and indirect		94,343		835		-		331		95,509
Residential real estate		102,816		1,699		57		2,556		107,128
	$	265,864	$	2,583	$	57	$	3,527	$	272,031

At December 31, 2016					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Commercial and industrial	$	4,679	$	-	$	-	$	-	$	4,679
Commercial real estate		68,775		-		-		647		69,422
Consumer and indirect		82,134		992		-		456		83,582
Residential real estate		103,941		1,798		36		2,648		108,423
	$	259,529	$	2,790	$	36	$	3,751	$	266,106

Schedule of allowance for loan loss and the unearned income on loans

	June 30,			December 31,
	2017			2016
	(dollars in thousands)
Troubled debt restructured loans	$	302		$	312
Non-accrual and 90 days or more and still accruing loans to gross loans		1.32	%		1.43	%
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans		72.52	%		65.59	%

Schedule of impaired financing receivables

(dollars in thousands)
June 30, 2017	Recorded Investment		Unpaid  Principal  Balance		Interest  Income  Recognized		Specific Reserve		Average  Recorded Investment
Impaired loans with specific reserves:
Real-estate - mortgage:
Residential	$	1,385		1,414		-		451		1,426
Commercial		-		-		-		-		-
Consumer		182		182		2		65		231
Installment		-		-		-		-		-
Home Equity		-		-		-		-		-
Commercial		222		222		6		222		225
Total impaired loans with specific reserves	$	1,789		1,818		8		738		1,882
Impaired loans with no specific reserve:
Real-estate - mortgage:
Residential	$	1,426		2,166		7		n/a		2,478
Commercial		1,367		1,519		17		n/a		1,558
Consumer		62		62		-		n/a		101
Installment		87		87		-		n/a		87
Home Equity		-		-		-		n/a		-
Commercial		2		2		-		n/a		2
Total impaired loans with no specific reserve	$	2,944		3,836		24		-		4,226

(dollars in thousands)
December 31, 2016	Recorded Investment		Unpaid Principal Balance		Interest Income Recognized		Specific Reserve		Average Recorded Investment
Impaired loans with specific reserves:
Real-estate - mortgage:
Residential	$	1,393		1,422		58		252		1,442
Commercial		-		-		-		-		-
Consumer		128		128		-		50		167
Installment		-		-		-		-		-
Home Equity		-		-		-		-		-
Commercial		229		229		8		228		235
Total impaired loans with specific reserves	$	1,750		1,779		66		530		1,844
Impaired loans with no specific reserve:
Real-estate - mortgage:
Residential	$	1,479		2,219		21		n/a		2,463
Commercial		1,413		1,565		59		n/a		1,594
Consumer		182		182		-		n/a		75
Installment		193		193		-		n/a		-
Home Equity		-		-		-		n/a		-
Commercial		-		-		-		n/a		-
Total impaired loans with no specific reserve	$	3,267		4,159		80		-		4,132

Schedule of total allowance by loan segment

	Commercial					Consumer
June 30, 2017	and			Commercial		and			Residential
(dollars in thousands)	Industrial			Real Estate		Indirect			Real Estate			Unallocated			Total
Balance, beginning of year	$	284		$	259	$	876		$	1,051		$	14		$	2,484
Provision for credit losses		(27	)		35		211			(45	)		(9	)		165
Recoveries		-			-		177			27			-			204
Loans charged off		-			-		(251	)		(3	)		-			(254	)
Balance, end of quarter	$	257		$	294	$	1,013		$	1,030		$	5		$	2,599
Individually evaluated for impairment:
Balance in allowance	$	222		$	-	$	65		$	451		$	-		$	738
Related loan balance		222			1,367		307			1,425			-			3,321
Collectively evaluated for impairment:
Balance in allowance	$	35		$	294	$	948		$	579		$	5		$	1,861
Related loan balance		3,517			64,288		95,202			105,703			-			268,710

	Commercial						Consumer
December 31, 2016	and			Commercial			and			Residential
(dollars in thousands)	Industrial			Real Estate			Indirect			Real Estate			Unallocated			Total
Balance, beginning of year	$	305		$	262		$	804		$	1,631		$	148		$	3,150
Provision for credit losses		(30	)		361			431			240			(134	)		868
Recoveries		9			-			336			34			-			379
Loans charged off		-			(364	)		(695	)		(854	)		-			(1,913	)
Balance, end of year	$	284		$	259		$	876		$	1,051		$	14		$	2,484
Individually evaluated for impairment:
Balance in allowance	$	229		$	-		$	50		$	251		$	-		$	530
Related loan balance		229			1,413			503			2,872			-			5,017
Collectively evaluated for impairment:
Balance in allowance	$	56		$	259		$	826		$	799		$	14		$	1,954
Related loan balance		4,451			68,009			83,078			105,552			-			261,090

Schedule of non accrual loans

(Dollars in thousands)	Commercial &		Commercial			Consumer &			Residential
	Industrial		Real Estate			Indirect			Real Estate			Total
December 31, 2016	$	-	$	647		$	456		$	2,648		$	3,751
Transfer into non-accrual		-		-			353			125			478
Transfer to REO		-		-			-			-			-
Loans paid down/payoffs		-		(7	)		(115	)		(214	)		(336	)
Loans brought to accrual status		-		-			(112	)		-			(112	)
Loans charged off		-		-			(251	)		(3	)		(254	)
June 30, 2017	$	-	$	640		$	331		$	2,556		$	3,527
December 31, 2015	$	-	$	300		$	596		$	2,883			3,779
Transfer into non-accrual		-		840			969			1,461			3,270
Transfer to REO		-		(114	)		-			(126	)		(240	)
Loans paid down/payoffs		-		(15	)		(414	)		(716	)		(1,145	)
Loans brought to accrual status		-		-			(25	)		(135	)		(160	)
Loans charged off		-		(364	)		(670	)		(719	)		(1,753	)
June 30, 2016	$	-	$	647		$	456		$	2,648		$	3,751

Schedule of risk ratings of loans by categories of loans

	Commercial				Consumer
June 30, 2017	and		Commercial		and		Residential
(dollars in thousands)	Industrial		Real Estate		Indirect		Real Estate		Total
Pass	$	3,517	$	63,837	$	94,194	$	104,164	$	265,712
Special mention		-		334		848		493		1,675
Substandard		222		1,484		407		2,471		4,584
Doubtful		-		-		60		-		60
Loss		-		-		-		-		-
	$	3,739	$	65,655	$	95,509	$	107,128	$	272,031
Non-accrual		-		640		331		2,556		3,527
Troubled debt restructures		222		-		33		47		302
Number of TDRs accounts		1		-		1		1		3
Non-performing TDRs	$	-	$	-	$	33	$	47	$	80
Non-performing TDRs  accounts		-		-		1		1		2

	Commercial				Consumer
December 31, 2016	and		Commercial		and		Residential
(dollars in thousands)	Industrial		Real Estate		Indirect		Real Estate		Total
Pass	$	4,357	$	64,208	$	82,943	$	105,225	$	256,733
Special mention		94		3,801		276		527		4,698
Substandard		228		1,413		327		2,493		4,461
Doubtful		-		-		36		178		214
Loss		-		-		-		-		-
	$	4,679	$	69,422	$	83,582	$	108,423	$	266,106
Non-accrual		-		647		456		2,648		3,751
Troubled debt restructures		228		-		36		48		312
Number of TDRs accounts		1		-		1		1		3
Non-performing TDRs	$	-	$	-	$	36	$	48	$	84
Non-performing TDRs  accounts		-		-		1		1		2