New Peoples Bankshares (NWPP) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document And Entity Information
Entity Registrant Name	NEW PEOPLES BANKSHARES INC
Entity Central Index Key	1,163,389
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		23,354,082
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Statements of Operations

Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 5,613	$ 5,925	$ 11,178	$ 11,706
Federal funds sold		1		2
Interest-earning deposits with banks	23	29	44	55
Investments	363	423	827	849
Dividends on equity securities (restricted)	32	34	64	66
Total Interest and Dividend Income	6,031	6,412	12,113	12,678
Deposits
Demand	13	9	24	18
Savings	37	44	78	85
Time deposits below $100,000	270	360	535	747
Time deposits above $100,000	158	251	312	522
FHLB advances	28	38	64	78
Federal funds purchased			2
Trust Preferred Securities	123	109	245	217
Total Interest Expense	629	811	1,260	1,667
NET INTEREST INCOME	5,402	5,601	10,853	11,011
PROVISION FOR LOAN LOSSES	(500)		(500)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,902	5,601	11,353	11,011
NONINTEREST INCOME
Service charges	584	552	1,072	1,088
Fees, commission and other income	858	823	1,663	1,537
Insurance and investment fees	143	132	301	256
Net realized gains on sale of investment securities	135		240	35
Life insurance investment income	33	34	63	69
Total Noninterest Income	1,753	1,541	3,339	2,985
NONINTEREST EXPENSES
Salaries and employee benefits	3,339	2,882	6,549	5,824
Occupancy and equipment expenses	1,068	920	1,921	1,862
Advertising and public relations	129	72	233	129
Data processing and telecommunications	576	503	1,157	1,002
FDIC insurance premiums	136	221	270	439
Other real estate owned and repossessed assets, net	89	707	252	1,066
Other operating expenses	1,439	1,375	2,731	2,587
Total Noninterest Expenses	6,776	6,680	13,113	12,909
INCOME BEFORE INCOME TAXES	879	462	1,579	1,087
INCOME TAX EXPENSE (BENEFIT)	(3)		(1)	3
NET INCOME	$ 882	$ 462	$ 1,580	$ 1,084
Income Per Share
Basic	$ 0.04	$ 0.02	$ 0.07	$ 0.05
Fully Diluted	$ 0.04	$ 0.02	$ 0.07	$ 0.05
Average Weighted Shares of Common Stock
Basic	23,354,082	22,878,654	23,354,082	22,878,654
Fully Diluted	23,354,082	22,878,654	23,354,082	22,878,654

Consolidated Statements Of Comp

Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 882	$ 462	$ 1,580	$ 1,084
Investment securities activity
Unrealized gains (losses) arising during the year	694	(893)	1,479	(267)
Tax related to unrealized gains (losses)	(236)	304	(503)	91
Reclassification of realized gains during the period	(135)		(240)	(35)
Tax related to realized gains	46		82	12
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	369	(589)	818	(199)
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 1,251	$ (127)	$ 2,398	$ 885

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 18,412	$ 15,087
Interest-bearing deposits with banks	13,821	11,251
Total Cash and Cash Equivalents	32,233	26,338
Investment securities available-for-sale	76,626	101,642
Loans receivable	459,613	441,169
Allowance for loan losses	(6,649)	(7,493)
Net Loans	452,964	433,676
Bank premises and equipment, net	31,228	28,148
Equity securities (restricted)	2,613	2,441
Other real estate owned	14,134	12,398
Accrued interest receivable	1,886	1,816
Life insurance investments	12,168	12,105
Deferred taxes, net	4,770	5,121
Other assets	3,689	2,213
Total Assets	632,311	625,898
Demand deposits:
Noninterest bearing	148,729	149,714
Interest-bearing	42,720	30,251
Savings deposits	112,037	121,076
Time deposits	251,598	256,978
Total Deposits	555,084	558,019
Federal Home Loan Bank advances	9,358	2,958
Accrued interest payable	292	288
Accrued expenses and other liabilities	2,596	2,050
Trust preferred securities	16,496	16,496
Total Liabilities	583,826	579,811
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,354,082 shares issued and outstanding	46,708	46,708
Common stock warrants	764	764
Additional paid-in capital	13,965	13,965
Retained deficit	(13,443)	(15,023)
Accumulated other comprehensive income (loss)	491	(327)
Total Stockholders' Equity	48,485	46,087
Total Liabilities and Stockholders' Equity	$ 632,311	$ 625,898

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	23,354,082	23,354,082
Common stock, shares outstanding	48,485	46,087

Shareholders Equity

Shareholders Equity - USD ($) $ in Thousands	Common Stock	Common Stock Warrants	Additional Paid-In Capital	Retained Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2014	$ 22,878
Balance, Shares at Dec. 31, 2014	45,757	1,176	13,672	(17,685)	(69)	42,851
Net income				$ 1,084		$ 1,084
Other comprehensive income, net of tax					$ (199)	$ (199)
Balance at Jun. 30, 2015	$ 22,878
Balance, Shares at Jun. 30, 2015	45,757	1,176	13,672	(16,601)	(268)	43,736
Balance at Dec. 31, 2015	$ 23,354					$ 46,087
Balance, Shares at Dec. 31, 2015	46,708	764	13,965	(15,023)	(327)	46,087
Net income				$ 1,580		$ 1,580
Other comprehensive income, net of tax					$ 818	818
Balance at Jun. 30, 2016	$ 23,354					$ 48,485
Balance, Shares at Jun. 30, 2016	46,708	764	13,965	(13,443)	491	48,485

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,580	$ 1,084
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,175	1,055
Provision for loan losses	(500)
Income on life insurance	(63)	(69)
Gain on sale of securities available-for-sale	(240)	(35)
Gain on sale of premises and equipment		(66)
(Gain) Loss on sale of foreclosed real estate	(185)	(15)
Adjustment of carrying value of foreclosed real estate	(28)	639
Accretion of bond premiums/discounts	482	573
Deferred tax benefit	(70)
Net change in:
Interest receivable	(70)	104
Other assets	(1,476)	(26)
Accrued interest payable	4	56
Accrued expenses and other liabilities	546	(56)
Net Cash Provided by Operating Activities	1,155	3,244
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in loans	(21,383)	10,865
Purchase of securities available-for-sale	(7,631)	(25,202)
Proceeds from sale and maturities of securities available-for-sale	33,644	16,690
Sale (Purchase) of Federal Home Loan Bank stock	(172)	30
Purchase of Federal Reserve Bank stock		(37)
Payments for the purchase of premises and equipment	(4,130)	(723)
Payments for the purchase of other real estate owned		(5)
Payments for premiums on life insurance investments		(65)
Proceeds from sales of premises and equipment		179
Proceeds from insurance on other real estate owned		53
Proceeds from sales of other real estate owned	947	760
Net Cash Provided by Investing Activities	1,275	2,545
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in Federal Home Loan Bank advances	6,400	(600)
Net change in:
Demand deposits	11,484	7,964
Savings deposits	(9,039)	7,512
Time deposits	(5,380)	(24,071)
Net Cash Provided by (Used in) Financing Activities	3,465	(9,195)
Net increase (decrease) in cash and cash equivalents	5,895	(3,406)
Cash and Cash Equivalents, Beginning of the Year	26,338	35,560
Cash and Cash Equivalents, End of the Year	32,233	32,154
Supplemental Disclosure of Cash Paid During the Year for:
Interest	1,256	1,611
Taxes	70
Supplemental Disclosure of Non Cash Transactions:
Other real estate acquired in settlement of foreclosed loans	3,098	1,869
Loans made to finance sale of foreclosed real estate	503	148
Transfer of other real estate to premises and equipment	125
Change in unrealized gains (losses) on securities available-for-sale	$ 1,239	$ (302)

1. NATURE OF OPERATIONS

1. NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. NATURE OF OPERATIONS	NOTE 1 NATURE OF OPERATIONS: New Peoples Bankshares, Inc. (“The Company”) is a financial holding company whose principal activity is the ownership and management of a community bank. New Peoples Bank, Inc. (“Bank”) was organized and incorporated under the laws of the Commonwealth of Virginia on December 9, 1997. The Bank commenced operations on October 28, 1998, after receiving regulatory approval. As a state-chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Bank. The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwestern Virginia, southern West Virginia, and eastern Tennessee. On June 9, 2003, the Company formed two wholly-owned subsidiaries; NPB Financial Services, Inc. and NPB Web Services, Inc. On July 7, 2004 the Company established NPB Capital Trust I for the purpose of issuing trust preferred securities. On September 27, 2006, the Company established NPB Capital Trust 2 for the purpose of issuing additional trust preferred securities. NPB Financial Services, Inc. was a subsidiary of the Company until January 1, 2009 when it became a subsidiary of the Bank. In June 2012 the name of NPB Financial Services, Inc. was changed to NPB Insurance Services, Inc. which operates solely as an insurance agency. On March 4, 2016 the Federal Reserve Bank of Richmond approved the Company’s election to become a financial holding company.

2. ACCOUNTING POLICIES

2. ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at June 30, 2016 and December 31, 2015, and the results of operations for the three and six month periods ended June 30, 2016 and 2015. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and six month periods ended June 30, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

3. FORMAL WRITTEN AGREEMENT

3. FORMAL WRITTEN AGREEMENT	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
3. FORMAL WRITTEN AGREEMENT	NOTE 3 FORMAL WRITTEN AGREEMENT: The Company and the Bank had previously entered into the Written Agreement with the Federal Reserve Bank of Richmond and the Virginia State Corporation Commission Bureau of Financial Institutions. On February 2, 2016, the Company and the Bank announced that they had successfully complied with all of the requirements of the Written Agreement and accordingly, effective January 20, 2016, the agreement had been terminated. Under the terms of the Written Agreement, the Bank developed and submitted for approval, within specified time periods, written plans related to board oversight; the Bank’s management and governance, including management of the Bank’s operations, credit risk management, lending and credit risk administration, management of commercial real estate concentrations; the review and grading of the Bank’s loan portfolio; the improvement of Bank problem assets in excess of $1 million; the maintenance of an adequate allowance for loan and lease losses; the enhanced management of the Bank’s liquidity position and funds management practices; the revision of the Bank’s contingency funding and strategic plans; and the enhancement of the Bank’s anti-money laundering activities. The Written Agreement also imposed limitations on actions taken on criticized credits and credits classified as “loss”. The Written Agreement required the submission of capital plans and the maintenance of adequate capital and restricted the payment of dividends and other distributions, the redemption of stock and the incurrence of debt.

4. CAPITAL

4. CAPITAL	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
4. CAPITAL	NOTE 4 CAPITAL: Capital Requirements and Ratios The Bank is subject to various capital requirements administered by 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 Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined) to risk-weighted assets (as defined), Tier 1 capital (as defined) to average assets (as defined), and Common Equity Tier 1 capital (as defined) to risk-weighted assets (as defined). As of June 30, 2016, the Bank meets all capital adequacy requirements to which it is subject. The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank continues to be subject to various capital requirements administered by banking agencies. The Bank’s actual capital amounts and ratios are presented in the following table as of June 30, 2016 and December 31, 2015, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 67,951 16.95 % $ 32,069 8.0 % 40,086 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,920 15.70 % 24,051 6.0 % 32,069 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,920 9.98 % 25,212 4.0 % 31,515 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,920 15.70 % 18,039 4.5 % 26,056 6.5 % December 31, 2015: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,713 17.55 % $ 29,954 8.0 % 37,443 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 22,466 6.0 % 29,954 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 60,998 9.67 % 25,239 4.0 % 31,549 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 16,849 4.5 % 24,338 6.5 % As of June 30, 2016, the Bank was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier Beginning January 1, 2016, a capital conservation buffer of 0.625% became effective. The capital conservation buffer will be gradually increased through January 1, 2019 to 2.5%. Banks will be required to maintain levels that meet the required minimum plus the capital conservation buffer in order to make distributions or discretionary bonus payments.

5. INVESTMENT SECURITIES

5. INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2016
Investment securities activity
5. INVESTMENT SECURITIES	NOTE 5 INVESTMENT SECURITIES: The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value June 30, 2016 U.S. Government Agencies $ 28,133 $ 344 $ 52 $ 28,425 Taxable municipals 2,411 72 - 2,483 Corporate bonds 3,101 137 6 3,232 Mortgage backed securities 42,238 302 54 42,486 Total Securities AFS $ 75,883 $ 855 $ 112 $ 76,626 December 31, 2015 U.S. Government Agencies $ 41,488 $ 244 $ 209 $ 41,523 Taxable municipals 3,337 5 61 3,281 Corporate bonds 1,944 15 20 1,939 Mortgage backed securities 55,369 41 511 54,899 Total Securities AFS $ 102,138 $ 305 $ 801 $ 101,642 The following table details unrealized losses and related fair values in the available-for-sale portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2016 and December 31, 2015. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 U.S. Government Agencies $ 4,747 $ 45 $ 1,849 $ 7 $ 6,596 $ 52 Taxable municipals - - 276 - 276 - Corporate bonds 941 6 - - 941 6 Mtg. backed securities 2,607 15 6,276 39 8,883 54 Total Securities AFS $ 8,295 $ 66 $ 8,401 $ 46 $ 16,696 $ 112 December 31, 2015 U.S. Government Agencies $ 14,995 $ 81 $ 7,708 $ 128 $ 22,073 $ 209 Taxable municipals 2,136 57 278 4 2,414 61 Corporate bonds 923 20 - - 923 20 Mtg. backed securities 38,945 354 8,719 157 47,664 511 Total Securities AFS $ 56,999 $ 512 $ 16,705 $ 289 $ 73,074 $ 801 At June 30, 2016, the available-for-sale portfolio included thirty eight investments for which the fair market value was less than amortized cost. At December 31, 2015, the available-for-sale portfolio included one hundred and thirty four investments for which the fair market value was less than amortized cost. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s analysis, the Company concluded that no securities had an other-than-temporary impairment. Investment securities with a carrying value of $12.5 million and $15.4 million at June 30, 2016 and December 31, 2015, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. Gross proceeds on the sale of investment securities were $24.8 million and $7.1 million, respectively, for the six months ended June 30, 2016 and 2015. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months ended June 30, For the six months ended June 30, (Dollars are in thousands) 2016 2015 2016 2015 Gross gains realized $ 156 $ - $ 275 $ 62 Gross losses realized (21) - (35) (27) Net realized gains $ 135 $ - $ 240 $ 35 The amortized cost and fair value of investment securities at June 30, 2016, by contractual maturity, are shown in the following schedule. 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. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 1,232 $ 1,236 0.91% Due after one year through five years 742 743 1.79% Due after five years through ten years 13,068 13,287 2.46% Due after ten years 60,841 61,360 1.85% Total $ 75,883 $ 76,626 1.94% The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.6 million and $2.4 million as of June 30, 2016 and December 31, 2015, respectively.

6. LOANS

6. LOANS	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
6. LOANS	NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) June 30, 2016 December 31, 2015 Real estate secured: Commercial $ 103,531 $ 98,569 Construction and land development 19,289 14,672 Residential 1-4 family 246,084 242,916 Multifamily 13,273 12,954 Farmland 23,474 22,174 Total real estate loans 405,651 391,285 Commercial 24,863 21,469 Agriculture 4,346 3,793 Consumer installment loans 24,724 24,568 All other loans 29 54 Total loans $ 459,613 $ 441,169 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) June 30, 2016 December 31, 2015 Real estate secured: Commercial $ 2,851 $ 4,358 Construction and land development 424 436 Residential 1-4 family 7,685 8,338 Multifamily 270 430 Farmland 969 1,170 Total real estate loans 12,199 14,732 Commercial 75 65 Agriculture 178 9 Consumer installment loans 69 41 All other loans - - Total loans receivable on nonaccrual status $ 12,521 $ 14,847 Total interest income not recognized on nonaccrual loans for the six months ended June 30, 2016 and 2015 was $158 thousand and $238 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of June 30, 2016 and December 31, 2015: As of June 30, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 4,451 $ 73 $ 4,396 $ 4,818 $ — Construction and land development 116 — 7 7 — Residential 1-4 family 3,758 103 4,075 4,391 — Multifamily 282 11 308 349 — Farmland 4,162 102 4,189 4,869 — Commercial — — — — — Agriculture 33 2 26 26 — Consumer installment loans 32 2 43 43 — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 1,522 — 1,029 1,102 158 Construction and land development 277 — 265 485 131 Residential 1-4 family 1,037 11 568 574 69 Multifamily 133 4 165 165 30 Farmland 595 12 505 513 296 Commercial 72 2 68 68 23 Agriculture 139 (2 ) 185 185 185 Consumer installment loans 22 — 10 10 3 All other loans — — — — — Total $ 16,631 $ 320 $ 15,839 $ 17,605 $ 895 As of December 31, 2015 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 4,534 $ 163 $ 4,212 $ 5,173 $ — Construction and land development 12 1 10 10 — Residential 1-4 family 3,506 161 3,037 3,150 — Multifamily 520 9 430 471 — Farmland 5,073 213 3,983 4,620 — Commercial 267 — — — — Agriculture 42 4 36 36 — Consumer installment loans 31 1 11 11 — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 2,935 37 2,503 2,849 288 Construction and land development 373 — 289 499 155 Residential 1-4 family 2,219 99 1,920 2,121 168 Multifamily 23 — — — — Farmland 906 38 761 778 328 Commercial 80 3 69 69 24 Agriculture 24 2 18 18 18 Consumer installment loans 19 4 45 45 2 All other loans — — — — — Total $ 20,564 $ 735 $ 17,324 $ 19,850 $ 983 An age analysis of past due loans receivable was as follows: As of June 30, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 534 $ 1,255 $ 1,552 $ 3,341 $ 100,190 $ 103,531 $ — Construction and land development 100 — 71 171 19,118 19,289 — Residential 1-4 family 6,199 2,054 2,075 10,328 235,756 246,084 — Multifamily 446 67 165 678 12,595 13,273 — Farmland 365 164 — 529 22,945 23,474 — Total real estate loans 7,644 3,540 3,863 15,047 390,604 405,651 — Commercial 36 15 75 126 24,737 24,863 — Agriculture 29 — 173 202 4,144 4,346 — Consumer installment Loans 161 49 37 247 24,477 24,724 — All other loans 22 — — 22 7 29 — Total loans $ 7,892 $ 3,604 $ 4,148 $ 15,644 $ 443,969 $ 459,613 $ — As of December 31, 2015 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 311 $ 105 $ 2,534 $ 2,950 $ 95,619 $ 98,569 $ — Construction and land development 144 — 17 161 14,511 14,672 — Residential 1-4 family 4,694 1,487 2,891 9,072 233,844 242,916 — Multifamily 47 — 320 367 12,587 12,954 — Farmland 363 — 251 614 21,560 22,174 — Total real estate loans 5,559 1,592 6,013 13,164 378,121 391,285 — Commercial 18 1 64 83 21,386 21,469 — Agriculture — — — — 3,793 3,793 — Consumer installment Loans 113 1 27 141 24,427 24,568 — All other loans 6 — — 6 48 54 — Total loans $ 5,696 $ 1,594 $ 6,104 $ 13,394 $ 427,775 $ 441,169 $ — The Company categorizes loans receivable 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 loans individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must 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 Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of June 30, 2016 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 91,667 $ 7,378 $ 4,486 $ — $ 103,531 Construction and land development 17,267 1,598 424 — 19,289 Residential 1-4 family 235,604 1,843 8,637 — 246,084 Multifamily 12,730 — 543 — 13,273 Farmland 17,703 3,473 2,298 — 23,474 Total real estate loans 374,971 14,292 16,388 — 405,651 Commercial 24,070 706 87 — 24,863 Agriculture 4,157 — 189 — 4,346 Consumer installment loans 24,574 — 150 — 24,724 All other loans 29 — — — 29 Total $ 427,801 $ 14,998 $ 16,814 $ — $ 459,613 As of December 31, 2015 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 85,255 $ 7,543 $ 5,771 $ — $ 98,569 Construction and land development 12,262 1,974 436 — 14,672 Residential 1-4 family 229,182 3,572 10,162 — 242,916 Multifamily 12,264 187 503 — 12,954 Farmland 16,663 2,923 2,588 — 22,174 Total real estate loans 355,626 16,199 19,460 — 391,285 Commercial 20,641 724 104 — 21,469 Agriculture 3,767 — 26 — 3,793 Consumer installment loans 24,478 — 90 — 24,568 All other loans 54 — — — 54 Total $ 404,566 $ 16,923 19,680 $ — $ 441,169

7. ALLOWANCE FOR LOAN LOSSES

7. ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
7. ALLOWANCE FOR LOAN LOSSES	NOTE 7 ALLOWANCE FOR LOAN LOSSES: The following table details activity in the allowance for loan losses by portfolio segment for the period ended June 30, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of June 30, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (327 ) $ 185 $ — $ (320 ) $ 1,922 Construction and land development 332 (5 ) 18 — (18 ) 327 Residential 1-4 family 2,437 (411 ) 65 — 96 2,187 Multifamily 232 (10 ) — — 36 258 Farmland 675 (2 ) 101 — (139 ) 635 Total real estate loans 6,060 (755 ) 369 — (345 ) 5,329 Commercial 266 (5 ) 48 — (110 ) 199 Agriculture 124 — 4 — 91 219 Consumer installment loans 128 (18 ) 13 — (3 ) 120 All other loans 1 — — — (1 ) — Unallocated 914 — — — (132 ) 782 Total $ 7,493 $ (778 ) $ 434 $ — $ (500 ) $ 6,649 Allowance for Loan Losses Recorded Investment in Loans As of June 30, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 158 $ 1,764 $ 1,922 $ 5,425 $ 98,106 $ 103,531 Construction and land development 131 196 327 272 19,017 19,289 Residential 1-4 family 69 2,118 2,187 4,643 241,441 246,084 Multifamily 30 228 258 473 12,800 13,273 Farmland 296 339 635 4,694 18,780 23,474 Total real estate loans 684 4,645 5,329 15,507 390,144 405,651 Commercial 23 176 199 68 24,795 24,863 Agriculture 185 34 219 211 4,135 4,346 Consumer installment loans 3 117 120 53 24,671 24,724 All other loans — — — — 29 29 Unallocated — 782 782 — — — Total $ 895 $ 5,754 $ 6,649 $ 15,839 $ 443,774 $ 459,613 The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2015 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 4,418 $ (724 ) $ 147 $ — $ (1,457 ) $ 2,384 Construction and land development 199 (226 ) 215 — 144 332 Residential 1-4 family 2,572 (743 ) 93 — 515 2,437 Multifamily 154 (384 ) 6 — 456 232 Farmland 913 (90 ) 214 — (362 ) 675 Total real estate loans 8,256 (2,167 ) 675 — (704 ) 6,060 Commercial 457 (92 ) 1,412 — (1,511 ) 266 Agriculture 125 — 3 — (4 ) 124 Consumer installment loans 171 (101 ) 41 — 17 128 All other loans 1 — — — — 1 Unallocated 912 — — — 2 914 Total $ 9,922 $ (2,360 ) $ 2,131 $ — $ (2,200 ) $ 7,493 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2015 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 288 $ 2,096 $ 2,384 $ 6,715 $ 91,854 $ 98,569 Construction and land development 155 177 332 299 14,373 14,672 Residential 1-4 family 168 2,269 2,437 4,957 237,959 242,916 Multifamily — 232 232 430 12,524 12,954 Farmland 328 347 675 4,744 17,430 22,174 Total real estate loans 939 5,121 6,060 17,145 374,140 391,285 Commercial 24 242 266 69 21,400 21,469 Agriculture 18 106 124 54 3,739 3,793 Consumer installment loans 2 126 128 56 24,512 24,568 All other loans — 1 1 — 54 54 Unallocated — 914 914 — — — Total $ 983 $ 6,510 7,493 $ 17,324 $ 423,845 $ 441,169 In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as the requirements of the written agreement and other regulatory input. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision.

8. TROUBLED DEBT RESTRUCTURINGS

8. TROUBLED DEBT RESTRUCTURINGS	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
8. TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At June 30, 2016 there were $9.7 million in loans that are classified as troubled debt restructurings compared to $9.5 million at December 31, 2015. The following table presents information related to loans modified as troubled debt restructurings during the six and three months ended June 30, 2016 and 2015. For the six months ended June 30, 2016 For the six months ended June 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial 1 $ 341 $ 339 — $ — $ — Construction and land Development — — — 1 551 314 Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland 1 291 291 — — — Total real estate loans 2 632 630 1 551 314 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 2 $ 632 $ 630 1 $ 551 $ 314 For the three months ended June 30, 2016 For the three months ended June 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland 1 291 291 — — — Total real estate loans 1 291 291 — — — Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 291 $ 291 — $ — $ — During the six months ended June 30, 2016, the Company modified the terms of two loans for which the modification was considered to be a troubled debt restructuring. On one loan the interest rate and maturity date were not modified; however, the payment terms were changed. On one loan the interest rate was lowered and the payment terms and maturity date were changed. During the six months ended June 30, 2015, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was not modified on the loan; however, the maturity date was extended. During the three months ended June 30, 2016, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was lowered and the payment terms and maturity date were changed. During the three months ended June 30, 2015, the Company modified no loans that were considered to be troubled debt restructurings. There was one commercial real estate loan with a recorded investment of $308 thousand that had been modified as a troubled debt restructuring that defaulted during the six months ended June 30, 2016, which was within twelve months of the loan’s modification date. No loans modified as troubled debt restructurings defaulted during the six months ended June 30, 2015. There were no loans modified as troubled debt restructurings that defaulted during the three months ended June 30, 2016 and 2015, which were within twelve months of their modification date. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. In determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further writedown the carrying value of the loan.

9. OTHER REAL ESTATE OWNED

9. OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
9. OTHER REAL ESTATE OWNED	NOTE 9 OTHER REAL ESTATE OWNED: The following table summarizes the activity in other real estate owned for the six months ended June 30, 2016 and the year ended December 31, 2015: (Dollars are in thousands) June 30, 2016 December 31, 2015 Balance, beginning of period $ 12,398 $ 15,049 Additions 3,098 3,277 Purchases of other real estate owned — 12 Transfers of other real estate owned (125 ) — Donation of other real estate owned — (33 ) Proceeds from sales (947 ) (1,831 ) Loans made to finance sales (503 ) (878 ) Proceeds from insurance claims — (101 ) Adjustment of carrying value 28 (3,246 ) Deferred gain from sales — 50 Gain from sales 185 99 Balance, end of period $ 14,134 $ 12,398

10. EARNINGS PER SHARE

10. EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2016
Income Per Share
10. EARNINGS PER SHARE	NOTE 10 EARNINGS PER SHARE: Basic earnings per share computations are based on the weighted average number of shares outstanding during each period. Dilutive earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate to outstanding options and common stock warrants are determined by the Treasury method. For the three and six months ended June 30, 2016 and 2015, potential common shares of 882,353 and 1,539,877, respectively, were anti-dilutive and were not included in the calculation. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except Share and Per Share Data) For the three months ended June 30, For the six months ended June 30, 2016 2015 2016 2015 Net income $ 882 $ 462 $ 1,580 $ 1,084 Weighted average shares outstanding 23,354,082 22,878,654 23,354,082 22,878,654 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,354,082 22,878,654 23,354,082 22,878,654 Basic income per share $ 0.04 $ 0.02 $ 0.07 $ 0.05 Diluted income per share $ 0.04 $ 0.02 $ 0.07 $ 0.05

11. TRUST PREFERRED SECURITIES

11. TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
11. TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS	NOTE 11 TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS: On July 7, 2004, the Company completed the issuance of $11.3 million in floating rate trust preferred securities offered by its wholly owned subsidiary, NPB Capital Trust I. The proceeds of the funds were used for general corporate purposes which included capital management for affiliates, retirement of indebtedness and other investments. The securities have a floating rate of 3 month LIBOR plus 260 basis points, which resets quarterly, with a current rate at June 30, 2016 of 3.23%. On September 27, 2006, the Company completed the issuance of $5.2 million in floating rate trust preferred securities offered by its wholly owned subsidiary, NPB Capital Trust 2. The proceeds of the funds were used for general corporate purposes, which include capital management for affiliates and the acquisition of two branch banks. The securities have a floating rate of 3 month LIBOR plus 177 basis points, which resets quarterly, with a current rate at June 30, 2016 of 2.40%. Under the terms of the subordinated debt transactions, the securities mature in 30 years from the date of issuance and are redeemable, in whole or in part, without penalty, at the option of the Company after five years. Due to the ability to defer interest and principal payments for 60 months without being considered in default, the regulatory agencies consider the trust preferred securities as Tier 1 capital up to certain limits. In October 2009, a restriction to pay dividends from the Bank to the Company was issued by the Federal Reserve Bank of Richmond. In July 2010 the Company and the Bank entered into the Written Agreement discussed in Note 3. The Written Agreement prohibited the payment of interest on the trust preferred securities without prior regulatory approval. As a result, interest on trust preferred securities was deferred. This deferral was for a period of 60 months, and was set to expire on January 7, 2015. In the fourth quarter of 2014, the Company requested and received regulatory approval to pay the cumulative deferred interest on the trust preferred securities due on January 7, 2015 totaling $2.5 million, which the Company paid on December 10, 2014. As a result of this payment there has been no interest in arrears on the trust preferred securities since that date. The Company is currently not deferring the quarterly interest payments on the trust preferred securities. However, as discussed above, regulatory approval was needed to pay the interest while the Company was under the formal Written Agreement. In March 2015 the Company requested and received regulatory approval to pay the $107 thousand in interest on the trust preferred securities due on April 7, 2015, which the Company paid on April 3, 2015. In June 2015 the Company requested and received regulatory approval to pay the $109 thousand in interest on the trust preferred securities due on July 7, 2015, which the Company paid on July 2, 2015. In September 2015 the Company requested and received regulatory approval to pay the $111 thousand in interest on the trust preferred securities due on October 7, 2015, which the Company paid on October 5, 2015. In December 2015 the Company requested and received regulatory approval to pay the $112 thousand in interest on the trust preferred securities due on January 7, 2016, which the Company paid on January 5, 2016. The restriction requiring regulatory approval before the payment of interest on the trust preferred securities was lifted when the Written Agreement was terminated effective January 20, 2016. On April 4, 2016, the Company paid $124 thousand in interest on the trust preferred securities, which was due on April 7, 2016. On July 6, 2016 the Company paid $124 thousand in interest on the trust preferred securities, which was due on July 7, 2016.

12. FAIR VALUES

12. FAIR VALUES	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
12. FAIR VALUES	NOTE 12 FAIR VALUES: The financial reporting standard, “Fair Value Measurements and Disclosures” provides a framework for measuring fair value under generally accepted accounting principles and requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale investment securities) or on a nonrecurring basis (for example, impaired loans and other real estate acquired through foreclosure). 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. Fair Value Measurements and Disclosures also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an exchange market, as well as U. S. Treasury, other U. S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2: 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 for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. For example, this category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. Investment Securities Available-for-Sale – Loans - Foreclosed Assets – Assets and liabilities measured at fair value are as follows as of June 30, 2016 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 28,425 $ — Taxable municipals — 2,483 — Corporate bonds — 3,232 — Mortgage backed securities — 42,486 — (On a non-recurring basis) Other real estate owned — — 14,134 Impaired loans: Real estate secured: Commercial — — 5,267 Construction and land development — — 141 Residential 1-4 family — — 4,574 Multifamily — — 443 Farmland — — 4,398 Commercial — — 45 Agriculture — — 26 Consumer installment loans — — 50 All other loans — — — Total $ — $ 76,626 $ 29,078 Assets and liabilities measured at fair value are as follows as of December 31, 2015 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 41,523 $ — Taxable municipals — 3,281 — Corporate bonds — 1,939 — Mortgage backed securities — 54,899 — (On a non-recurring basis) Other real estate owned — — 12,398 Impaired loans: Real estate secured: Commercial — — 6,427 Construction and land development — — 144 Residential 1-4 family — — 4,789 Multifamily — — 430 Farmland — — 4,416 Commercial — — 45 Agriculture — — 36 Consumer installment loans — — 54 All other loans — — — Total $ — $ 101,642 $ 28,739 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of June 30, 2016, the significant unobservable inputs used in the fair value measurements were as follows: For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 14,944 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 14,134 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% Fair Value of Financial Instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. The following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments presented below. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. The carrying value of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities, trust preferred securities and accrued interest approximates fair value. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of June 30, 2016 and December 31, 2015. Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) June 30, 2016 Financial Instruments – Assets Net Loans $ 452,964 $ 455,841 $ — $ 440,897 $ 14,944 Financial Instruments – Liabilities Time Deposits 251,598 251,587 — 251,587 — FHLB Advances 9,358 9,355 — 9,355 — December 31, 2015 Financial Instruments – Assets Net Loans $ 433,676 $ 438,589 $ — $ 422,248 $ 16,341 Financial Instruments – Liabilities Time Deposits 256,978 256,797 — 256,797 — FHLB Advances 2,958 2,958 — 2,958 —

13. SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
13. SUBSEQUENT EVENTS	NOTE 13 SUBSEQUENT EVENTS: In July 2016, the Bank and its wholly-owned subsidiary NPB Insurance Services, Inc. announced by press release it is teaming up with The Hilb Group of Virginia dba CSE Insurance Services, a division of the Hilb Group, LLC (“CSE”), located in Abingdon, Virginia, to provide insurance services for its current and future customers. Effective July 1, 2016, NPB Insurance Services, Inc. sold its existing book of business to CSE. These customers will be serviced by CSE and the Bank will refer future insurance needs of its bank customers to CSE.

14. RECENT ACCOUNTING DEVELOPME

14. RECENT ACCOUNTING DEVELOPMENTS	6 Months Ended
	Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]
14. RECENT ACCOUNTING DEVELOPMENTS	NOTE 14 RECENT ACCOUNTING DEVELOPMENTS: The following is a summary of recent authoritative announcements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company applied the guidance prospectively. Adoption of these amendments did not have a material effect on the Company’s financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. Adoption of these amendments did not have a material effect on the Company’s financial statements. In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (“ASC”), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. Adoption of these amendments did not have a material effect on the Company’s financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. Adoption of these amendments did not have a material effect on the Company’s financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

2. ACCOUNTING POLICIES (Policie

2. ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	NOTE 2 ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at June 30, 2016 and December 31, 2015, and the results of operations for the three and six month periods ended June 30, 2016 and 2015. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and six month periods ended June 30, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

4. CAPITAL (Tables)

4. CAPITAL (Tables)	6 Months Ended
	Jun. 30, 2016
Regulatory Capital Requirements [Abstract]
Schedule Of Capital Requirements	Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 67,951 16.95 % $ 32,069 8.0 % 40,086 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,920 15.70 % 24,051 6.0 % 32,069 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,920 9.98 % 25,212 4.0 % 31,515 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,920 15.70 % 18,039 4.5 % 26,056 6.5 % December 31, 2015: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,713 17.55 % $ 29,954 8.0 % 37,443 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 22,466 6.0 % 29,954 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 60,998 9.67 % 25,239 4.0 % 31,549 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 16,849 4.5 % 24,338 6.5 %

5. INVESTMENT SECURITIES (Table

5. INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Investment securities activity
Schedule Of Securities' Amortized Cost And Estimated Fair Value	Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value June 30, 2016 U.S. Government Agencies $ 28,133 $ 344 $ 52 $ 28,425 Taxable municipals 2,411 72 - 2,483 Corporate bonds 3,101 137 6 3,232 Mortgage backed securities 42,238 302 54 42,486 Total Securities AFS $ 75,883 $ 855 $ 112 $ 76,626 December 31, 2015 U.S. Government Agencies $ 41,488 $ 244 $ 209 $ 41,523 Taxable municipals 3,337 5 61 3,281 Corporate bonds 1,944 15 20 1,939 Mortgage backed securities 55,369 41 511 54,899 Total Securities AFS $ 102,138 $ 305 $ 801 $ 101,642
Schedule Of Fair Value And Gross Unrealized Losses On Investment Securities In A Continuous Unrealized Loss Position	Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 U.S. Government Agencies $ 4,747 $ 45 $ 1,849 $ 7 $ 6,596 $ 52 Taxable municipals - - 276 - 276 - Corporate bonds 941 6 - - 941 6 Mtg. backed securities 2,607 15 6,276 39 8,883 54 Total Securities AFS $ 8,295 $ 66 $ 8,401 $ 46 $ 16,696 $ 112 December 31, 2015 U.S. Government Agencies $ 14,995 $ 81 $ 7,708 $ 128 $ 22,073 $ 209 Taxable municipals 2,136 57 278 4 2,414 61 Corporate bonds 923 20 - - 923 20 Mtg. backed securities 38,945 354 8,719 157 47,664 511 Total Securities AFS $ 56,999 $ 512 $ 16,705 $ 289 $ 73,074 $ 801
The Amortized Cost And Fair Value Of Investment Securities' Contractual Maturity	Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 1,232 $ 1,236 0.91% Due after one year through five years 742 743 1.79% Due after five years through ten years 13,068 13,287 2.46% Due after ten years 60,841 61,360 1.85% Total $ 75,883 $ 76,626 1.94%

6. LOANS (Tables)

6. LOANS (Tables)	6 Months Ended
	Jun. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]
Summary Of Loans Receivable Outstanding	(Dollars are in thousands) June 30, 2016 December 31, 2015 Real estate secured: Commercial $ 103,531 $ 98,569 Construction and land development 19,289 14,672 Residential 1-4 family 246,084 242,916 Multifamily 13,273 12,954 Farmland 23,474 22,174 Total real estate loans 405,651 391,285 Commercial 24,863 21,469 Agriculture 4,346 3,793 Consumer installment loans 24,724 24,568 All other loans 29 54 Total loans $ 459,613 $ 441,169
Summary Of Loans Receivable On Nonaccrual Status	(Dollars are in thousands) June 30, 2016 December 31, 2015 Real estate secured: Commercial $ 2,851 $ 4,358 Construction and land development 424 436 Residential 1-4 family 7,685 8,338 Multifamily 270 430 Farmland 969 1,170 Total real estate loans 12,199 14,732 Commercial 75 65 Agriculture 178 9 Consumer installment loans 69 41 All other loans - - Total loans receivable on nonaccrual status $ 12,521 $ 14,847
Summary Of Impaired Loans	As of June 30, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 4,451 $ 73 $ 4,396 $ 4,818 $ — Construction and land development 116 — 7 7 — Residential 1-4 family 3,758 103 4,075 4,391 — Multifamily 282 11 308 349 — Farmland 4,162 102 4,189 4,869 — Commercial — — — — — Agriculture 33 2 26 26 — Consumer installment loans 32 2 43 43 — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 1,522 — 1,029 1,102 158 Construction and land development 277 — 265 485 131 Residential 1-4 family 1,037 11 568 574 69 Multifamily 133 4 165 165 30 Farmland 595 12 505 513 296 Commercial 72 2 68 68 23 Agriculture 139 (2 ) 185 185 185 Consumer installment loans 22 — 10 10 3 All other loans — — — — — Total $ 16,631 $ 320 $ 15,839 $ 17,605 $ 895 As of December 31, 2015 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 4,534 $ 163 $ 4,212 $ 5,173 $ — Construction and land development 12 1 10 10 — Residential 1-4 family 3,506 161 3,037 3,150 — Multifamily 520 9 430 471 — Farmland 5,073 213 3,983 4,620 — Commercial 267 — — — — Agriculture 42 4 36 36 — Consumer installment loans 31 1 11 11 — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 2,935 37 2,503 2,849 288 Construction and land development 373 — 289 499 155 Residential 1-4 family 2,219 99 1,920 2,121 168 Multifamily 23 — — — — Farmland 906 38 761 778 328 Commercial 80 3 69 69 24 Agriculture 24 2 18 18 18 Consumer installment loans 19 4 45 45 2 All other loans — — — — — Total $ 20,564 $ 735 $ 17,324 $ 19,850 $ 983
Summary Of Age Analysis Of Past Due Loans Receivable	An age analysis of past due loans receivable was as follows: As of June 30, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 534 $ 1,255 $ 1,552 $ 3,341 $ 100,190 $ 103,531 $ — Construction and land development 100 — 71 171 19,118 19,289 — Residential 1-4 family 6,199 2,054 2,075 10,328 235,756 246,084 — Multifamily 446 67 165 678 12,595 13,273 — Farmland 365 164 — 529 22,945 23,474 — Total real estate loans 7,644 3,540 3,863 15,047 390,604 405,651 — Commercial 36 15 75 126 24,737 24,863 — Agriculture 29 — 173 202 4,144 4,346 — Consumer installment Loans 161 49 37 247 24,477 24,724 — All other loans 22 — — 22 7 29 — Total loans $ 7,892 $ 3,604 $ 4,148 $ 15,644 $ 443,969 $ 459,613 $ — As of December 31, 2015 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 311 $ 105 $ 2,534 $ 2,950 $ 95,619 $ 98,569 $ — Construction and land development 144 — 17 161 14,511 14,672 — Residential 1-4 family 4,694 1,487 2,891 9,072 233,844 242,916 — Multifamily 47 — 320 367 12,587 12,954 — Farmland 363 — 251 614 21,560 22,174 — Total real estate loans 5,559 1,592 6,013 13,164 378,121 391,285 — Commercial 18 1 64 83 21,386 21,469 — Agriculture — — — — 3,793 3,793 — Consumer installment Loans 113 1 27 141 24,427 24,568 — All other loans 6 — — 6 48 54 — Total loans $ 5,696 $ 1,594 $ 6,104 $ 13,394 $ 427,775 $ 441,169 $ —
Summary Of Risk Category Of Loans Receivable	As of June 30, 2016 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 91,667 $ 7,378 $ 4,486 $ — $ 103,531 Construction and land development 17,267 1,598 424 — 19,289 Residential 1-4 family 235,604 1,843 8,637 — 246,084 Multifamily 12,730 — 543 — 13,273 Farmland 17,703 3,473 2,298 — 23,474 Total real estate loans 374,971 14,292 16,388 — 405,651 Commercial 24,070 706 87 — 24,863 Agriculture 4,157 — 189 — 4,346 Consumer installment loans 24,574 — 150 — 24,724 All other loans 29 — — — 29 Total $ 427,801 $ 14,998 $ 16,814 $ — $ 459,613 As of December 31, 2015 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 85,255 $ 7,543 $ 5,771 $ — $ 98,569 Construction and land development 12,262 1,974 436 — 14,672 Residential 1-4 family 229,182 3,572 10,162 — 242,916 Multifamily 12,264 187 503 — 12,954 Farmland 16,663 2,923 2,588 — 22,174 Total real estate loans 355,626 16,199 19,460 — 391,285 Commercial 20,641 724 104 — 21,469 Agriculture 3,767 — 26 — 3,793 Consumer installment loans 24,478 — 90 — 24,568 All other loans 54 — — — 54 Total $ 404,566 $ 16,923 19,680 $ — $ 441,169

7. ALLOWANCE FOR LOAN LOSSES (T

7. ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2016
Loans and Leases Receivable, Allowance [Abstract]
Summary Of Activity In The Allowance For Loan Losses By Portfolio Segment	As of June 30, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (327 ) $ 185 $ — $ (320 ) $ 1,922 Construction and land development 332 (5 ) 18 — (18 ) 327 Residential 1-4 family 2,437 (411 ) 65 — 96 2,187 Multifamily 232 (10 ) — — 36 258 Farmland 675 (2 ) 101 — (139 ) 635 Total real estate loans 6,060 (755 ) 369 — (345 ) 5,329 Commercial 266 (5 ) 48 — (110 ) 199 Agriculture 124 — 4 — 91 219 Consumer installment loans 128 (18 ) 13 — (3 ) 120 All other loans 1 — — — (1 ) — Unallocated 914 — — — (132 ) 782 Total $ 7,493 $ (778 ) $ 434 $ — $ (500 ) $ 6,649 Allowance for Loan Losses Recorded Investment in Loans As of June 30, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 158 $ 1,764 $ 1,922 $ 5,425 $ 98,106 $ 103,531 Construction and land development 131 196 327 272 19,017 19,289 Residential 1-4 family 69 2,118 2,187 4,643 241,441 246,084 Multifamily 30 228 258 473 12,800 13,273 Farmland 296 339 635 4,694 18,780 23,474 Total real estate loans 684 4,645 5,329 15,507 390,144 405,651 Commercial 23 176 199 68 24,795 24,863 Agriculture 185 34 219 211 4,135 4,346 Consumer installment loans 3 117 120 53 24,671 24,724 All other loans — — — — 29 29 Unallocated — 782 782 — — — Total $ 895 $ 5,754 $ 6,649 $ 15,839 $ 443,774 $ 459,613
Schedule Of Allocation Of Portion Of Allowance	As of December 31, 2015 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 4,418 $ (724 ) $ 147 $ — $ (1,457 ) $ 2,384 Construction and land development 199 (226 ) 215 — 144 332 Residential 1-4 family 2,572 (743 ) 93 — 515 2,437 Multifamily 154 (384 ) 6 — 456 232 Farmland 913 (90 ) 214 — (362 ) 675 Total real estate loans 8,256 (2,167 ) 675 — (704 ) 6,060 Commercial 457 (92 ) 1,412 — (1,511 ) 266 Agriculture 125 — 3 — (4 ) 124 Consumer installment loans 171 (101 ) 41 — 17 128 All other loans 1 — — — — 1 Unallocated 912 — — — 2 914 Total $ 9,922 $ (2,360 ) $ 2,131 $ — $ (2,200 ) $ 7,493 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2015 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 288 $ 2,096 $ 2,384 $ 6,715 $ 91,854 $ 98,569 Construction and land development 155 177 332 299 14,373 14,672 Residential 1-4 family 168 2,269 2,437 4,957 237,959 242,916 Multifamily — 232 232 430 12,524 12,954 Farmland 328 347 675 4,744 17,430 22,174 Total real estate loans 939 5,121 6,060 17,145 374,140 391,285 Commercial 24 242 266 69 21,400 21,469 Agriculture 18 106 124 54 3,739 3,793 Consumer installment loans 2 126 128 56 24,512 24,568 All other loans — 1 1 — 54 54 Unallocated — 914 914 — — — Total $ 983 $ 6,510 7,493 $ 17,324 $ 423,845 $ 441,169

8. TROUBLED DEBT RESTRUCTURING

8. TROUBLED DEBT RESTRUCTURING (Tables)	6 Months Ended
	Jun. 30, 2016
Troubled Debt Restructuring, Debtor, Current Period [Abstract]
Schedule Of Loans Modified As Troubled Debt Restructurings	For the six months ended June 30, 2016 For the six months ended June 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial 1 $ 341 $ 339 — $ — $ — Construction and land Development — — — 1 551 314 Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland 1 291 291 — — — Total real estate loans 2 632 630 1 551 314 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 2 $ 632 $ 630 1 $ 551 $ 314 For the three months ended June 30, 2016 For the three months ended June 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland 1 291 291 — — — Total real estate loans 1 291 291 — — — Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 291 $ 291 — $ — $ —

9. OTHER REAL ESTATE OWNED (Tab

9. OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2016
Other Real Estate Owned Tables
Other Real Estate	(Dollars are in thousands) June 30, 2016 December 31, 2015 Balance, beginning of period $ 12,398 $ 15,049 Additions 3,098 3,277 Purchases of other real estate owned — 12 Transfers of other real estate owned (125 ) — Donation of other real estate owned — (33 ) Proceeds from sales (947 ) (1,831 ) Loans made to finance sales (503 ) (878 ) Proceeds from insurance claims — (101 ) Adjustment of carrying value 28 (3,246 ) Deferred gain from sales — 50 Gain from sales 185 99 Balance, end of period $ 14,134 $ 12,398

10. EARNINGS PER SHARE (Tables)

10. EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
Income Per Share
Schedule Of Anti-Dilutive Income Per Common Share	(Amounts in Thousands, Except Share and Per Share Data) For the three months ended June 30, For the six months ended June 30, 2016 2015 2016 2015 Net income $ 882 $ 462 $ 1,580 $ 1,084 Weighted average shares outstanding 23,354,082 22,878,654 23,354,082 22,878,654 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,354,082 22,878,654 23,354,082 22,878,654 Basic income per share $ 0.04 $ 0.02 $ 0.07 $ 0.05 Diluted income per share $ 0.04 $ 0.02 $ 0.07 $ 0.05

12. FAIR VALUES (Tables)

12. FAIR VALUES (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Summary Of Assets And Liabilities Measured At Fair Value	(Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 28,425 $ — Taxable municipals — 2,483 — Corporate bonds — 3,232 — Mortgage backed securities — 42,486 — (On a non-recurring basis) Other real estate owned — — 14,134 Impaired loans: Real estate secured: Commercial — — 5,267 Construction and land development — — 141 Residential 1-4 family — — 4,574 Multifamily — — 443 Farmland — — 4,398 Commercial — — 45 Agriculture — — 26 Consumer installment loans — — 50 All other loans — — — Total $ — $ 76,626 $ 29,078 Assets and liabilities measured at fair value are as follows as of December 31, 2015 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 41,523 $ — Taxable municipals — 3,281 — Corporate bonds — 1,939 — Mortgage backed securities — 54,899 — (On a non-recurring basis) Other real estate owned — — 12,398 Impaired loans: Real estate secured: Commercial — — 6,427 Construction and land development — — 144 Residential 1-4 family — — 4,789 Multifamily — — 430 Farmland — — 4,416 Commercial — — 45 Agriculture — — 36 Consumer installment loans — — 54 All other loans — — — Total $ — $ 101,642 $ 28,739
Schedule Of Significant Unobservable Inputs In Level 3 Assets	(Dollars in thousands) Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 14,944 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 14,134 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18%
Estimated Fair Value Of Financial Instruments	Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) June 30, 2016 Financial Instruments – Assets Net Loans $ 452,964 $ 455,841 $ — $ 440,897 $ 14,944 Financial Instruments – Liabilities Time Deposits 251,598 251,587 — 251,587 — FHLB Advances 9,358 9,355 — 9,355 — December 31, 2015 Financial Instruments – Assets Net Loans $ 433,676 $ 438,589 $ — $ 422,248 $ 16,341 Financial Instruments – Liabilities Time Deposits 256,978 256,797 — 256,797 — FHLB Advances 2,958 2,958 — 2,958 —

4. CAPITAL - Schedule of Capita

4. CAPITAL - Schedule of Capital Requirements (Details) - Bank - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total Capital to Risk Weighted Assets, Actual, Amount	$ 67,951	$ 65,713
Total Capital to Risk Weighted Assets, Actual, Ratio	16.95%	17.55%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 32,069	$ 29,954
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	8.00%	8.00%
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 40,086	$ 37,443
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier 1 Capital Risk Weighted Assets, Actual, Amount	$ 62,920	$ 60,998
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	15.70%	16.29%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 24,051	$ 22,466
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio	6.00%	6.00%
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 32,069	$ 29,954
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Tier 1 Capital to Average Assets, Actual, Amount	$ 62,920	$ 60,998
Tier 1 Capital to Average Assets, Actual, Ratio	9.98%	9.67%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 25,212	$ 25,239
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio	4.00%	4.00%
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 31,515	$ 31,549
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount	$ 62,920	$ 60,998
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	15.70%	16.29%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 18,039	$ 16,849
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	4.50%	4.50%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 26,056	$ 24,338
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%

5. INVESTMENT SECURITIES - Sche

5. INVESTMENT SECURITIES - Schedule of Securities Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized Cost	$ 75,883	$ 102,138
Gross Unrealized Gains	855	305
Gross Unrealized Losses	112	801
Approximate Fair Value	76,626	101,642
US Government Agencies
Amortized Cost	28,133	41,488
Gross Unrealized Gains	344	244
Gross Unrealized Losses	52	209
Approximate Fair Value	28,425	41,523
Taxable Municipals
Amortized Cost	2,411	3,337
Gross Unrealized Gains	72	5
Gross Unrealized Losses		61
Approximate Fair Value	2,483	3,281
Corporate Bonds
Amortized Cost	3,101	1,944
Gross Unrealized Gains	137	15
Gross Unrealized Losses	6	20
Approximate Fair Value	3,232	1,939
Mortgage Backed Securities
Amortized Cost	42,238	55,369
Gross Unrealized Gains	302	41
Gross Unrealized Losses	54	511
Approximate Fair Value	$ 42,486	$ 54,899

5. INVESTMENT SECURITIES - Sc33

5. INVESTMENT SECURITIES - Schedule of Fair Value and Gross Unrealized Losses on Investment Securities In A Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Less than 12 Months	$ 8,295	$ 56,999
Unrealized Losses, Less than 12 Months	66	512
Fair Value, 12 Months or More	8,401	16,705
Unrealized Losses, 12 Months or More	46	289
Fair Value, Total	16,696	73,074
Unrealized Losses, Total	112	801
US Government Agencies
Fair Value, Less than 12 Months	4,747	14,995
Unrealized Losses, Less than 12 Months	45	81
Fair Value, 12 Months or More	1,849	7,708
Unrealized Losses, 12 Months or More	7	128
Fair Value, Total	6,596	22,073
Unrealized Losses, Total	52	209
Taxable Municipals
Fair Value, Less than 12 Months		2,136
Unrealized Losses, Less than 12 Months		57
Fair Value, 12 Months or More	276	278
Unrealized Losses, 12 Months or More		4
Fair Value, Total	276	2,414
Unrealized Losses, Total		61
Corporate Bonds
Fair Value, Less than 12 Months	941	923
Unrealized Losses, Less than 12 Months	6	20
Fair Value, 12 Months or More
Unrealized Losses, 12 Months or More
Fair Value, Total	941	923
Unrealized Losses, Total	6	20
Mortgage Backed Securities
Fair Value, Less than 12 Months	2,607	38,945
Unrealized Losses, Less than 12 Months	15	354
Fair Value, 12 Months or More	6,276	8,719
Unrealized Losses, 12 Months or More	39	157
Fair Value, Total	8,883	47,664
Unrealized Losses, Total	$ 54	$ 511

5. INVESTMENT SECURITIES - Amor

5. INVESTMENT SECURITIES - Amortized Cost and Fair Value Of Investment Securities Contractual Maturity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Investment securities activity
Due in one year or less, Amortized Cost	$ 1,232
Due after one year through five years, Amortized Cost	742
Due after five years through ten years, Amortized Cost	13,068
Due after ten years, Amortized Cost	60,841
Amortized Cost, Total	75,883	$ 102,138
Due in one year or less, Fair Value	1,236
Due after one year through five years, Fair Value	743
Due after five years through ten years, Fair Value	13,287
Due after ten years, Fair Value	61,360
Approximate Fair Value	$ 76,626	$ 101,642
Due in one year or less, Weighted Average Yield	0.91%
Due after one year through five years, Weighted Average Yield	1.79%
Due after five years through ten years, Weighted Average Yield	2.46%
Due after ten years, Weighted Average Yield	1.85%
Weighted Average Yield, Total	1.94%

5. INVESTMENT SECURITIES (Detai

5. INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investment securities activity
Securities pledged as collateral	$ 12,500	$ 15,400

6. LOANS - Summary of Loans Rec

6. LOANS - Summary of Loans Receivable Outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total loans and leases	$ 459,613	$ 441,169
Real Estate [Member]
Total loans and leases	405,651	391,285
Commercial
Total loans and leases	24,863	21,469
Commercial | Real Estate [Member]
Total loans and leases	103,531	98,569
Construction and Land Development | Real Estate [Member]
Total loans and leases	19,289	14,672
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	246,084	242,916
Multifamily | Real Estate [Member]
Total loans and leases	13,273	12,954
Farmland | Real Estate [Member]
Total loans and leases	23,474	22,174
Agriculture
Total loans and leases	4,346	3,793
Consumer Installment Loans
Total loans and leases	24,724	24,568
Other Loans
Total loans and leases	$ 29	$ 54

6. LOANS - Summary of Loans R37

6. LOANS - Summary of Loans Receivable on Nonaccrual Status (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total loans receivable on nonaccrual status	$ 12,521	$ 14,847
Real Estate [Member]
Total loans receivable on nonaccrual status	12,199	14,732
Commercial
Total loans receivable on nonaccrual status	75	65
Commercial | Real Estate [Member]
Total loans receivable on nonaccrual status	2,851	4,358
Construction and Land Development | Real Estate [Member]
Total loans receivable on nonaccrual status	424	436
Residential 1-4 Family | Real Estate [Member]
Total loans receivable on nonaccrual status	7,685	8,338
Multifamily | Real Estate [Member]
Total loans receivable on nonaccrual status	270	430
Farmland | Real Estate [Member]
Total loans receivable on nonaccrual status	969	1,170
Agriculture
Total loans receivable on nonaccrual status	178	9
Consumer Installment Loans
Total loans receivable on nonaccrual status	69	$ 41
Other Loans
Total loans receivable on nonaccrual status

6. LOANS - Summary of Impaired

6. LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Average Recorded Investment	$ 16,631	$ 20,564
Interest Income Recognized	320	735
Recorded Investment	15,839	17,324
Unpaid Principal Balance	17,605	19,850
Related Allowance	895	983
Agriculture | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	33	42
Interest Income Recognized	2	4
Recorded Investment	26	36
Unpaid Principal Balance	26	36
Related Allowance
Agriculture | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	139	24
Interest Income Recognized	(2)	2
Recorded Investment	185	18
Unpaid Principal Balance	185	18
Related Allowance	185	18
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	32	31
Interest Income Recognized	2	1
Recorded Investment	43	11
Unpaid Principal Balance	43	11
Related Allowance
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	22	19
Interest Income Recognized		4
Recorded Investment	10	45
Unpaid Principal Balance	10	45
Related Allowance	3	2
Commercial Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment		267
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	72	80
Interest Income Recognized	2	3
Recorded Investment	68	69
Unpaid Principal Balance	68	69
Related Allowance	23	24
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	4,451	4,534
Interest Income Recognized	73	163
Recorded Investment	4,396	4,212
Unpaid Principal Balance	4,818	5,173
Related Allowance
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	1,522	2,935
Interest Income Recognized		37
Recorded Investment	1,029	2,503
Unpaid Principal Balance	1,102	2,849
Related Allowance	158	288
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	116	12
Interest Income Recognized		1
Recorded Investment	7	10
Unpaid Principal Balance	7	10
Related Allowance
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	277	373
Interest Income Recognized
Recorded Investment	265	289
Unpaid Principal Balance	485	499
Related Allowance	131	155
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	3,758	3,506
Interest Income Recognized	103	161
Recorded Investment	4,075	3,037
Unpaid Principal Balance	4,391	3,150
Related Allowance
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	1,037	2,219
Interest Income Recognized	11	99
Recorded Investment	568	1,920
Unpaid Principal Balance	574	2,121
Related Allowance	69	168
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	282	520
Interest Income Recognized	11	9
Recorded Investment	308	430
Unpaid Principal Balance	349	471
Related Allowance
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	133	23
Interest Income Recognized	4
Recorded Investment	165
Unpaid Principal Balance	165
Related Allowance	30
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	4,162	5,073
Interest Income Recognized	102	213
Recorded Investment	4,189	3,983
Unpaid Principal Balance	4,869	4,620
Related Allowance
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	595	906
Interest Income Recognized	12	38
Recorded Investment	505	761
Unpaid Principal Balance	513	778
Related Allowance	$ 296	$ 328

6. LOANS - Summary of Age Analy

6. LOANS - Summary of Age Analysis of Past Due Loans Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Loans 30-59 Days Past Due	$ 7,892	$ 5,696
Loans 60-89 Days Past Due	3,604	1,594
Loans 90 or More Days Past Due	4,148	6,104
Total Past Due Loans	15,644	13,394
Current Loans	443,969	427,775
Total loans and leases	459,613	441,169
Accruing Loans 90 or More Days Past Due
Real Estate [Member]
Loans 30-59 Days Past Due	7,644	5,559
Loans 60-89 Days Past Due	3,540	1,592
Loans 90 or More Days Past Due	3,863	6,013
Total Past Due Loans	15,047	13,164
Current Loans	390,604	378,121
Total loans and leases	405,651	391,285
Accruing Loans 90 or More Days Past Due
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Loans 30-59 Days Past Due	534	311
Loans 60-89 Days Past Due	1,255	105
Loans 90 or More Days Past Due	1,552	2,534
Total Past Due Loans	3,341	2,950
Current Loans	100,190	95,619
Total loans and leases	103,531	98,569
Accruing Loans 90 or More Days Past Due
Construction and Land Development | Real Estate [Member]
Total loans and leases	19,289	14,672
Construction and Land Development | Real Estate [Member]
Total loans and leases	19,289
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Loans 30-59 Days Past Due	100	144
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	71	17
Total Past Due Loans	171	161
Current Loans	19,118	14,511
Total loans and leases	19,289	14,672
Accruing Loans 90 or More Days Past Due
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	246,084	242,916
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	246,084
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Loans 30-59 Days Past Due	6,199	4,694
Loans 60-89 Days Past Due	2,054	1,487
Loans 90 or More Days Past Due	2,075	2,891
Total Past Due Loans	10,328	9,072
Current Loans	235,756	233,844
Total loans and leases	246,084	242,916
Accruing Loans 90 or More Days Past Due
Multifamily | Real Estate [Member]
Total loans and leases	13,273	12,954
Multifamily | Real Estate [Member]
Total loans and leases	13,273
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Loans 30-59 Days Past Due	446	47
Loans 60-89 Days Past Due	67
Loans 90 or More Days Past Due	165	320
Total Past Due Loans	678	367
Current Loans	12,595	12,587
Total loans and leases	13,273	12,954
Accruing Loans 90 or More Days Past Due
Farmland | Real Estate [Member]
Total loans and leases	23,474	22,174
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Loans 30-59 Days Past Due	365	363
Loans 60-89 Days Past Due	164
Loans 90 or More Days Past Due		251
Total Past Due Loans	529	614
Current Loans	22,945	21,560
Total loans and leases	23,474	22,174
Accruing Loans 90 or More Days Past Due
Commercial
Loans 30-59 Days Past Due	36	18
Loans 60-89 Days Past Due	15	1
Loans 90 or More Days Past Due	75	64
Total Past Due Loans	126	83
Current Loans	24,737	21,386
Total loans and leases	24,863	21,469
Accruing Loans 90 or More Days Past Due
Commercial | Real Estate [Member]
Total loans and leases	103,531	98,569
Agriculture
Loans 30-59 Days Past Due	29
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	173
Total Past Due Loans	202
Current Loans	4,144	3,793
Total loans and leases	4,346	3,793
Accruing Loans 90 or More Days Past Due
Consumer Installment Loans
Loans 30-59 Days Past Due	161	113
Loans 60-89 Days Past Due	49	1
Loans 90 or More Days Past Due	37	27
Total Past Due Loans	247	141
Current Loans	24,477	24,427
Total loans and leases	24,724	24,568
Accruing Loans 90 or More Days Past Due
Other Loans
Loans 30-59 Days Past Due	22	6
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans	22	6
Current Loans	7	48
Total loans and leases	29	54
Accruing Loans 90 or More Days Past Due

6. LOANS - Summary of Risk Cate

6. LOANS - Summary of Risk Category of Loans Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total	$ 459,613	$ 441,169
Real Estate [Member]
Total	405,651	391,285
Pass
Total	427,801	404,566
Special Mention
Total	14,998	16,923
Substandard
Total	16,814	19,680
Real Estate [Member] | Pass
Total	374,971	355,626
Real Estate [Member] | Special Mention
Total	14,292	16,199
Real Estate [Member] | Substandard
Total	16,388	19,460
Commercial Portfolio Segment [Member] | Pass
Total	24,070	20,641
Commercial Portfolio Segment [Member] | Special Mention
Total	706	724
Commercial Portfolio Segment [Member] | Substandard
Total	87	104
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass
Total	91,667	85,255
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention
Total	7,378	7,543
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard
Total	4,486	5,771
Construction and Land Development | Real Estate [Member]
Total	19,289	14,672
Construction and Land Development | Real Estate [Member]
Total	19,289
Construction and Land Development | Real Estate [Member] | Pass
Total	17,267	12,262
Construction and Land Development | Real Estate [Member] | Special Mention
Total	1,598	1,974
Construction and Land Development | Real Estate [Member] | Substandard
Total	424	436
Residential 1-4 Family | Real Estate [Member]
Total	246,084	242,916
Residential 1-4 Family | Real Estate [Member]
Total	246,084
Residential 1-4 Family | Real Estate [Member] | Pass
Total	235,604	229,182
Residential 1-4 Family | Real Estate [Member] | Special Mention
Total	1,843	3,572
Residential 1-4 Family | Real Estate [Member] | Substandard
Total	8,637	10,162
Multifamily | Real Estate [Member]
Total	13,273	12,954
Multifamily | Real Estate [Member]
Total	13,273
Multifamily | Real Estate [Member] | Pass
Total	12,730	12,264
Multifamily | Real Estate [Member] | Special Mention
Total		187
Multifamily | Real Estate [Member] | Substandard
Total	543	503
Farmland | Real Estate [Member]
Total	23,474	22,174
Farmland | Real Estate [Member] | Pass
Total	17,703	16,663
Farmland | Real Estate [Member] | Special Mention
Total	3,473	2,923
Farmland | Real Estate [Member] | Substandard
Total	2,298	2,588
Agriculture
Total	4,346	3,793
Agriculture | Pass
Total	4,157	3,767
Agriculture | Special Mention
Total
Agriculture | Substandard
Total	189	26
Consumer Installment Loans
Total	24,724	24,568
Consumer Installment Loans | Pass
Total	24,574	24,478
Consumer Installment Loans | Special Mention
Total
Consumer Installment Loans | Substandard
Total	150	90
Other Loans
Total	29	54
Other Loans | Pass
Total	29	54
Other Loans | Special Mention
Total
Other Loans | Substandard
Total
Commercial
Total	24,863	21,469
Commercial | Real Estate [Member]
Total	$ 103,531	$ 98,569

6. LOANS (Details Narrative)

6. LOANS (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Receivables [Abstract]
Interest income not recognized on nonaccrual loans	$ 238	$ 158

7. ALLOWANCE FOR LOAN LOSSES -

7. ALLOWANCE FOR LOAN LOSSES - Summary of Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Balance, beginning of year	$ 7,493	$ 9,922
Charge Offs	(778)	(2,360)
Recoveries	434	2,131
Advances
Provision for loan losses	(500)	(2,200)
Balance, End of period	6,649	7,493
Real Estate [Member]
Balance, beginning of year	6,060	8,256
Charge Offs	(755)	(2,167)
Recoveries	369	675
Advances
Provision for loan losses	(345)	(704)
Balance, End of period	5,329	6,060
Commercial Real Estate [Member]
Balance, beginning of year	266	457
Charge Offs	(5)	(92)
Recoveries	48	1,412
Advances
Provision for loan losses	(110)	(1,511)
Balance, End of period	199	266
Commercial Real Estate [Member] | Real Estate [Member]
Balance, beginning of year	2,384	4,418
Charge Offs	(327)	(724)
Recoveries	185	147
Advances
Provision for loan losses	(320)	(1,457)
Balance, End of period	1,922	2,384
Construction and Land Development | Real Estate [Member]
Balance, beginning of year	332	199
Charge Offs	(5)	(226)
Recoveries	18	215
Advances
Provision for loan losses	(18)	144
Balance, End of period	327	332
Residential 1-4 Family | Real Estate [Member]
Balance, beginning of year	2,437	2,572
Charge Offs	(411)	(743)
Recoveries	65	93
Advances
Provision for loan losses	96	515
Balance, End of period	2,187	2,437
Multifamily | Real Estate [Member]
Balance, beginning of year	232	154
Charge Offs	(10)	(384)
Recoveries		6
Advances
Provision for loan losses	36	456
Balance, End of period	258	232
Farmland | Real Estate [Member]
Balance, beginning of year	675	913
Charge Offs	(2)	(90)
Recoveries	101	214
Advances
Provision for loan losses	(139)	(362)
Balance, End of period	635	675
Agriculture
Balance, beginning of year	124	125
Charge Offs
Recoveries	4	3
Advances
Provision for loan losses	91	(4)
Balance, End of period	219	124
Consumer Installment Loans
Balance, beginning of year	128	171
Charge Offs	(18)	(101)
Recoveries	13	41
Advances
Provision for loan losses	(3)	17
Balance, End of period	120	128
Other Loans
Balance, beginning of year	1	1
Charge Offs
Recoveries
Advances
Provision for loan losses	(1)
Balance, End of period		1
Unallocated
Balance, beginning of year	914	912
Charge Offs
Recoveries
Advances
Provision for loan losses	(132)	2
Balance, End of period	$ 782	$ 914

7. ALLOWANCE FOR LOAN LOSSES 43

7. ALLOWANCE FOR LOAN LOSSES - Schedule of Allocation of Portion of Allowance (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 895	$ 983
Allowance for Loan Losses, Collectively Evaluated for Impairment	5,754	6,510
Allowance for Loan Losses, Total	6,649	7,493	$ 9,922
Recorded Investment in Loans, Individually Evaluated for Impairment	15,839	17,324
Recorded Investment in Loans, Collectively Evaluated for Impairment	443,774	423,845
Recorded Investment in Loans, Total	459,613	441,169
Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	684	939
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,645	5,121
Allowance for Loan Losses, Total	5,329	6,060
Recorded Investment in Loans, Individually Evaluated for Impairment	15,507	17,145
Recorded Investment in Loans, Collectively Evaluated for Impairment	390,144	374,140
Recorded Investment in Loans, Total	405,651	391,285
Real Estate [Member]
Allowance for Loan Losses, Total	5,329	6,060	8,256
Commercial
Allowance for Loan Losses, Individually Evaluated for Impairment	23	24
Allowance for Loan Losses, Collectively Evaluated for Impairment	176	242
Allowance for Loan Losses, Total	199	266
Recorded Investment in Loans, Individually Evaluated for Impairment	68	69
Recorded Investment in Loans, Collectively Evaluated for Impairment	24,795	21,400
Recorded Investment in Loans, Total	24,863	21,469
Commercial | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	158	288
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,764	2,096
Allowance for Loan Losses, Total	1,922	2,384
Recorded Investment in Loans, Individually Evaluated for Impairment	5,425	6,715
Recorded Investment in Loans, Collectively Evaluated for Impairment	98,106	91,854
Recorded Investment in Loans, Total	103,531	98,569
Construction and Land Development | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment		155
Allowance for Loan Losses, Collectively Evaluated for Impairment		177
Allowance for Loan Losses, Total		332
Recorded Investment in Loans, Individually Evaluated for Impairment		299
Recorded Investment in Loans, Collectively Evaluated for Impairment		14,373
Recorded Investment in Loans, Total	19,289	14,672
Construction and Land Development | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	131
Allowance for Loan Losses, Collectively Evaluated for Impairment	196
Allowance for Loan Losses, Total	327	332	199
Recorded Investment in Loans, Individually Evaluated for Impairment	272
Recorded Investment in Loans, Collectively Evaluated for Impairment	19,017
Recorded Investment in Loans, Total	19,289
Residential 1-4 Family | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment		168
Allowance for Loan Losses, Collectively Evaluated for Impairment		2,269
Allowance for Loan Losses, Total		2,437
Recorded Investment in Loans, Individually Evaluated for Impairment		4,957
Recorded Investment in Loans, Collectively Evaluated for Impairment		237,959
Recorded Investment in Loans, Total	246,084	242,916
Residential 1-4 Family | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	69
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,118
Allowance for Loan Losses, Total	2,187	2,437	2,572
Recorded Investment in Loans, Individually Evaluated for Impairment	4,643
Recorded Investment in Loans, Collectively Evaluated for Impairment	241,441
Recorded Investment in Loans, Total	246,084
Multifamily | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment		232
Allowance for Loan Losses, Total		232
Recorded Investment in Loans, Individually Evaluated for Impairment		430
Recorded Investment in Loans, Collectively Evaluated for Impairment		12,524
Recorded Investment in Loans, Total	13,273	12,954
Multifamily | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	30
Allowance for Loan Losses, Collectively Evaluated for Impairment	228
Allowance for Loan Losses, Total	258	232	154
Recorded Investment in Loans, Individually Evaluated for Impairment	473
Recorded Investment in Loans, Collectively Evaluated for Impairment	12,800
Recorded Investment in Loans, Total	13,273
Farmland | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	296	328
Allowance for Loan Losses, Collectively Evaluated for Impairment	339	347
Allowance for Loan Losses, Total	635	675
Recorded Investment in Loans, Individually Evaluated for Impairment	4,694	4,744
Recorded Investment in Loans, Collectively Evaluated for Impairment	18,780	17,430
Recorded Investment in Loans, Total	23,474	22,174
Farmland | Real Estate [Member]
Allowance for Loan Losses, Total	635	675	913
Agriculture
Allowance for Loan Losses, Individually Evaluated for Impairment	185	18
Allowance for Loan Losses, Collectively Evaluated for Impairment	34	106
Allowance for Loan Losses, Total	219	124	125
Recorded Investment in Loans, Individually Evaluated for Impairment	211	54
Recorded Investment in Loans, Collectively Evaluated for Impairment	4,135	3,739
Recorded Investment in Loans, Total	4,346	3,793
Consumer Installment Loans
Allowance for Loan Losses, Individually Evaluated for Impairment	3	2
Allowance for Loan Losses, Collectively Evaluated for Impairment	117	126
Allowance for Loan Losses, Total	120	128	171
Recorded Investment in Loans, Individually Evaluated for Impairment	53	56
Recorded Investment in Loans, Collectively Evaluated for Impairment	24,671	24,512
Recorded Investment in Loans, Total	24,724	24,568
Other Loans
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment		1
Allowance for Loan Losses, Total		1	1
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment	29	54
Recorded Investment in Loans, Total	29	54
Unallocated
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	782	914
Allowance for Loan Losses, Total	782	914	$ 912
Recorded Investment in Loans, Individually Evaluated for Impairment
Recorded Investment in Loans, Collectively Evaluated for Impairment
Recorded Investment in Loans, Total

8. TROUBLED DEBT RESTRUCTURIN44

8. TROUBLED DEBT RESTRUCTURINGS - Schedule Of Loans Modified As Troubled Debt Restructurings (Details) - Real Estate [Member] $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016USD ($)loans	Jun. 30, 2015USD ($)loans	Dec. 31, 2015USD ($)loans
# of Loans | loans	1	1
Pre-Mod. Recorded Investment	$ 632	$ 551
Post-Mod. Recorded Investment	$ 630	$ 314
Commercial Real Estate [Member]
# of Loans | loans	1
Pre-Mod. Recorded Investment	$ 341
Post-Mod. Recorded Investment	$ 339
Farmland
# of Loans | loans	1
Pre-Mod. Recorded Investment	$ 291
Post-Mod. Recorded Investment	$ 291
Construction and Land Development
# of Loans | loans			1
Pre-Mod. Recorded Investment			$ 551
Post-Mod. Recorded Investment			$ 314

8. TROUBLED DEBT RESTRUCTURIN45

8. TROUBLED DEBT RESTRUCTURINGS (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Notes to Financial Statements
Total TDRs	$ 9,500
Period loan is considered to be in default, days	90 days

9. OTHER REAL ESTATE OWNED - Ot

9. OTHER REAL ESTATE OWNED - Other Real Estate (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Real Estate [Abstract]
Balance, beginning of year	$ 12,398	$ 15,049
Additions	3,098	3,277
Purchases of other real estate owned		12
Transfers of other real estate owned	(125)
Donation of other real estate owned		33
Proceeds from sales	(947)	(1,831)
Loans made to finance sales	(503)	(878)
Proceeds from insurance claims		(101)
Adjustment of carrying value	28	(3,246)
Deferred gain from sales		50
Gain (loss) from sales	185	99
Balance, end of year	$ 14,134	$ 12,398

10. EARNINGS PER SHARE (Schedul

10. EARNINGS PER SHARE (Schedule Of Anti-Dilutive Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Per Share
Net income	$ 882	$ 462	$ 1,580	$ 1,084
Weighted average shares outstanding	23,354,082	22,878,654	23,354,082	22,878,654
Weighted average dilutive shares outstanding	23,354,082	22,878,654	23,354,082	22,878,654
Basic income per share	$ 0.04	$ 0.02	$ 0.07	$ 0.05
Diluted income per share	$ 0.04	$ 0.02	$ 0.07	$ 0.05

12. FAIR VALUES - Summary of As

12. FAIR VALUES - Summary of Assets And Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 2 [Member]
Available for sale investments	$ 76,626
Impaired Loans		$ 101,642
Fair Value, Inputs, Level 3 [Member]
Other real estate owned	14,134	12,398
Impaired Loans	29,078	28,739
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies
Available for sale investments	28,425	41,523
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | TaxableMunicipalsMember
Available for sale investments	2,483	3,281
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member]
Available for sale investments	3,232	1,939
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities
Available for sale investments	42,486	54,899
Commercial Real Estate [Member] | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans		45
Commercial Real Estate [Member] | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	5,267	6,427
Construction and Land Development | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	141	144
Residential 1-4 Family | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	4,574	4,789
Multifamily | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	443	430
Farmland | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	4,398	4,416
Agriculture | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans	26	36
Consumer Installment Loans | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans	50	$ 54
Other Loans | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans

12. FAIR VALUES - Schedule of S

12. FAIR VALUES - Schedule of Significant Unobservable Inputs In Level 3 Assets (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Other Real Estate Owned
Fair Value at June 30, 2016	$ 14,134
Valuation Technique	Appraised Value/Comparable Sales/Other Estimates from Independent Sources
Significant Unobservable Inputs	Discounts to reflect current market conditions and estimated costs to sell
Other Real Estate Owned | Minimum [Member]
Significant Unobservable Input Value	0.00%
Other Real Estate Owned | Maximum [Member]
Significant Unobservable Input Value	18.00%
Impaired Loans
Fair Value at June 30, 2016	$ 14,944
Valuation Technique	Appraised Value/Discounted Cash Flows/Market Value of Note
Significant Unobservable Inputs	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell
Impaired Loans | Minimum [Member]
Significant Unobservable Input Value	0.00%
Impaired Loans | Maximum [Member]
Significant Unobservable Input Value	18.00%

12. FAIR VALUES - Estimated Fai

12. FAIR VALUES - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Net Loans	$ 452,964	$ 433,676
Time deposits	251,598	256,978
Fair Value, Inputs, Level 2 [Member]
Net Loans	440,897	422,248
Time deposits	251,587	256,797
FHLB advances	9,355	2,958
Fair Value, Inputs, Level 3 [Member]
Net Loans	14,944	16,341
Time deposits
FHLB advances
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member]
Net Loans	452,964	433,676
Time deposits	251,598	256,978
FHLB advances	9,358	2,958
Fair Value, Measurements, Recurring [Member]
Net Loans	455,841	438,589
Time deposits	251,587	256,797
FHLB advances	9,355	$ 2,958
Fair Value, Inputs, Level 1 [Member]
Net Loans
Time deposits
FHLB advances