FAIR VALUE MEASUREMENTS (Table)

12 Months Ended

Dec. 31, 2016

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets measured at fair value on a recurring basis at December 31, 2016 and 2015. No assets were transferred from one hierarchy level to another during 2016or 2015.


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2016
Securities available for sale:
U.S. Treasury	$	-	$	-	$	-	$	-
U.S. Government agencies		34,214		-		34,214		-
Mortgage-backed		128,944		-		128,944		-
Equity		640		-		640		-
Total	$	163,798	$	-	$	163,798	$	-

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2015
Securities available for sale:
U.S. Treasury	$	5,079	$	5,079	$	-	$	-
U.S. Government agencies		49,529		-		49,529		-
Mortgage-backed		156,916		-		156,916		-
Equity		641		-		641		-
Total	$	212,165	$	5,079	$	207,086	$	-

Fair Value of Assets Measured on Nonrecurring Basis

The following tables sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a nonrecurring basis at December 31, 2016 and 2015, that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assets in the following table were transferred during 2016 from Level 2 to Level 3, based on managements reassessment an evaluation of the inputs in relation to impaired loans and foreclosed assets. This reassessment resulted in management conclusion that the inputs for these assets were more reflective of Level 3 as unobservable inputs and applied retrospectively to prior periods reported.


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2016
Impaired loans
Construction	$	6,368	$	-	$	-	$	6,368
Residential real estate		7,461		-		-		7,461
Commercial real estate		5,903		-		-		5,903
Commercial		-		-		-		-
Consumer		99		-		-		99
Total impaired loans		19,831		-		-		19,831
Other real estate owned		2,477		-		-		2,477
Total assets measured at fair value on a
nonrecurring basis	$	22,308	$	-	$	-	$	22,308


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2015
Impaired loans
Construction	$	10,979	$	-	$	-	$	10,979
Residential real estate		7,510		-		-		7,510
Commercial real estate		7,422		-		-		7,422
Commercial		161		-		-		161
Consumer		115		-		-		115
Total impaired loans		26,187		-		-		26,187
Other real estate owned		4,252		-		-		4,252
Total assets measured at fair value on a
nonrecurring basis	$	30,439	$	-	$	-	$	30,439

Schedule of Estimated Fair Values of Financial Assets and Liabilities

The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported in the balance sheets at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy.


	December 31, 2016				December 31, 2015
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 1 inputs
Cash and cash equivalents	$	75,938	$	75,938	$	73,811	$	73,811

Level 2 inputs
Investment securities held to maturity	$	6,808	$	6,806	$	4,191	$	4,243
Loans, net		862,799		867,594		786,798		788,187

Financial liabilities
Level 2 inputs
Deposits	$	997,489	$	929,573	$	975,464	$	922,161
Short-term borrowings		3,203		3,203		6,672		6,672