New Peoples Bankshares (NWPP) 10-K 13 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 10, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	NEW PEOPLES BANKSHARES INC
Entity Central Index Key	1,163,389
Document Type	10-K
Document Period End Date	Dec. 31, 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 Public Float			$ 15,017,102
Entity Common Stock, Shares Outstanding		23,355,457
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 18,500	$ 15,087
Interest-bearing deposits with banks	16,816	11,251
Federal funds sold	132
Total Cash and Cash Equivalents	35,448	26,338
Investment securities available-for-sale	70,011	101,642
Loans receivable	468,629	441,169
Allowance for loan losses	(6,072)	(7,493)
Net Loans	462,557	433,676
Bank premises and equipment, net	29,985	28,148
Equity securities (restricted)	2,802	2,441
Other real estate owned	10,655	12,398
Accrued interest receivable	1,848	1,816
Life insurance investments	12,274	12,105
Deferred taxes, net	5,285	5,121
Other assets	3,470	2,213
Total Assets	634,335	625,898
Demand deposits:
Noninterest bearing	151,914	149,714
Interest-bearing	40,213	30,251
Savings deposits	114,492	121,076
Time deposits	247,819	256,978
Total Deposits	554,438	558,019
FHLB advances	13,758	2,958
Accrued interest payable	331	288
Accrued expenses and other liabilities	2,395	2,050
Trust preferred securities	16,496	16,496
Total Liabilities	587,418	579,811
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,354,457 and 23,354,082 shares issued and outstanding at December 31, 2016 and 2015, respectively	46,709	46,708
Common stock warrants	764	764
Additional paid-in capital	13,965	13,965
Retained deficit	(14,065)	(15,023)
Accumulated other comprehensive loss	(456)	(327)
Total Stockholders' Equity	46,917	46,087
Total Liabilities and Stockholders' Equity	$ 634,335	$ 625,898

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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	23,354,457	23,354,082
Common stock, shares outstanding	23,354,457	23,354,082

Statements of Operations

Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 22,644	$ 23,671
Federal funds sold		2
Interest-earning deposits with banks	84	91
Investments	1,480	1,759
Dividends on equity securities (restricted)	138	132
Total Interest and Dividend Income	24,346	25,655
Deposits
Demand	50	37
Savings	166	173
Time deposits below $100,000	1,087	1,343
Time deposits above $100,000	655	916
FHLB advances	152	145
Federal funds purchased	2
Trust Preferred Securities	508	440
Total Interest Expense	2,620	3,054
NET INTEREST INCOME	21,726	22,601
PROVISION FOR LOAN LOSSES	500	2,200
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	22,226	24,801
NONINTEREST INCOME
Service charges	2,850	2,216
Fees, commission and other income	3,507	3,247
Insurance and investment fees	462	559
Net realized gains on sale of investment securities	303	35
Life insurance investment income	169	346
Total Noninterest Income	7,291	6,403
NONINTEREST EXPENSES
Salaries and employee benefits	13,126	11,823
Occupancy and equipment expenses	4,157	3,865
Advertising and public relations	449	407
Data processing and telecommunications	2,403	2,149
FDIC insurance premiums	470	842
Other real estate owned and repossessed assets, net	2,193	4,088
Other operating expenses	5,770	5,349
Total Noninterest Expenses	28,568	28,523
INCOME BEFORE INCOME TAXES	949	2,681
INCOME TAX EXPENSE (BENEFIT)	(9)	19
NET INCOME	$ 958	$ 2,662
Income Per Share
Basic and Fully Diluted	$ 0.04	$ 0.12
Average Weighted Shares of Common Stock
Basic and Fully Diluted	23,354,155	22,955,391

Consolidated Statements Of Comp

Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 958	$ 2,662
Investment securities activity
Unrealized gains (losses) arising during the year	108	(356)
Tax related to unrealized gains (losses)	(37)	121
Reclassification of realized gains during the year	(303)	(35)
Tax related to realized gains	103	12
TOTAL OTHER COMPREHENSIVE LOSS	(129)	(258)
TOTAL COMPREHENSIVE INCOME	$ 829	$ 2,404

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, Shares at Dec. 31, 2014	22,878
Balance at Dec. 31, 2014	$ 45,757	$ 1,176	$ 13,672	$ (17,685)	$ (69)	$ 42,851
Balance, Shares at Dec. 31, 2014	22,878
Balance at Dec. 31, 2014	$ 45,757	1,176	13,672	(17,685)	(69)	42,851
Net income				2,662		2,662
Exercise of Common Stock Warrants, Shares	476
Exercise of Common Stock Warrants	$ 951	(412)	293			832
Other comprehensive income (loss), net of tax					(258)	$ (258)
Balance, Shares at Dec. 31, 2015	23,354					23,354,082
Balance at Dec. 31, 2015	$ 46,708	764	13,965	(15,023)	(327)	$ 46,087
Balance, Shares at Dec. 31, 2015	23,354					23,354,082
Balance at Dec. 31, 2015	$ 46,708	764	13,965	(15,023)	(327)	$ 46,087
Balance, Shares at Dec. 31, 2015	23,354					23,354,082
Balance at Dec. 31, 2015	$ 46,708	764	13,965	(15,023)	(327)	$ 46,087
Net income				958		958
Exercise of Common Stock Warrants	$ 1					1
Other comprehensive income (loss), net of tax					(129)	$ (129)
Balance, Shares at Dec. 31, 2016	23,354					23,354,457
Balance at Dec. 31, 2016	$ 46,709	764	13,965	(14,065)	(456)	$ 46,917
Balance, Shares at Dec. 31, 2016	23,354					23,354,457
Balance at Dec. 31, 2016	$ 46,709	$ 764	$ 13,965	$ (14,065)	$ (456)	$ 46,917

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 958	$ 2,662
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,398	2,092
Provision for loan losses	(500)	(2,200)
Income on life insurance	(169)	(346)
Gain on sale of securities available-for-sale	(303)	(35)
Gain on sale of premises and equipment	(63)	(160)
Gain on sale of foreclosed real estate	(221)	(99)
Adjustment of carrying value of foreclosed real estate	1,414	3,246
Accretion of bond premiums/discounts	931	1,140
Deferred tax benefit	(97)
Net change in:
Interest receivable	(32)	159
Other assets	(1,257)	200
Accrued interest payable	43	22
Accrued expenses and other liabilities	345	(121)
Net Cash Provided by Operating Activities	3,447	6,560
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in loans	(32,140)	12,566
Purchase of securities available-for-sale	(14,990)	(29,312)
Proceeds from sale and maturities of securities available-for-sale	45,797	26,243
Net purchase of equity securities (restricted)	(361)	(72)
Payments for the purchase of premises and equipment	(4,790)	(2,423)
Payments for the purchase of/improvements to other real estate owned	(48)	(12)
Payments for premiums on life insurance investments		(65)
Proceeds from bank owned life insurance investment		1,793
Proceeds from sale of premises and equipment	743	1,109
Proceeds from insurance claims on other real estate owned		101
Proceeds from sales of other real estate owned	4,232	1,831
Net Cash Provided by (Used in) Investing Activities	(1,557)	11,759
CASH FLOWS FROM FINANCING ACTIVITIES
Exercise of common stock warrants	1	832
Net increase (decrease) in Federal Home Loan Bank advances	10,800	(1,200)
Net change in:
Demand deposits	12,162	6,448
Savings deposits	(6,584)	9,375
Time deposits	(9,159)	(42,996)
Net Cash Provided by (Used in) Financing Activities	7,220	(27,541)
Net increase (decrease) in cash and cash equivalents	9,110	(9,222)
Cash and Cash Equivalents, Beginning of the Year	26,338	35,560
Cash and Cash Equivalents, End of the Year	35,448	26,338
Supplemental Disclosure of Cash Paid During the Year for:
Interest	2,577	3,032
Taxes	95
Supplemental Disclosure of Non Cash Transactions:
Other real estate acquired in settlement of foreclosed loans	4,577	3,277
Loans made to finance sale of foreclosed real estate	818	878
Transfer of other real estate to premises and equipment	125
Donation of other real estate owned		(33)
Change in unrealized losses on securities available-for-sale	$ 195	$ 391

1. NATURE OF OPERATIONS

1. NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. NATURE OF OPERATIONS	NOTE 1 NATURE OF OPERATIONS: Nature of Operations –

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Consolidation Policy Use of Estimates - Cash and Cash Equivalents Investment Securities The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method. Realized gains (losses) on securities available-for-sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Unrealized gains and losses on investment securities available for sale are based on the difference between book value and fair value of each security. These gains and losses are credited or charged to other comprehensive income, net of tax, whereas realized gains and losses flow through the statements of income. Loans – It is the Company’s policy to stop accruing interest on a loan, and classify that loan as non-accrual under the following circumstances: (a) whenever we are advised by the borrower that scheduled payment or interest payments cannot be met, (b) when our best judgment indicates that payment in full of principal and interest can no longer be expected, or (c) when any such loan or obligation becomes delinquent for 90 days unless it is both well secured and in the process of collection. All interest accrued but not collected for loans that are place on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, six consecutive timely payments are made, and prospects for future contractual payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Significant Group Concentrations of Credit Risk – Allowance for Loan Losses – The allowance is increased by a provision for loan losses, which is charged to expense and reduced by charge-offs, net of recoveries. Loans are charged against the allowance for loan losses when management believes that collectability of all or part of the principal is unlikely. Past due status is determined based on contractual terms. In regard to our consumer and consumer real estate loan portfolio, the Company uses the guidance found in the Uniform Retail Credit Classification and Account Management Policy which affects our estimate of the allowance for loan losses. Under this approach, a consumer or consumer real estate loan must initially have a credit risk grade of Pass or better. Subsequently, if the loan becomes contractually 90 days past due or the borrower files for bankruptcy protection, the loan is downgraded to Substandard and placed in nonaccrual status. If the loan is unsecured, upon being deemed Substandard, the entire loan amount is charged off. For non 1-4 family residential loans that are 90 days past due or greater, or in bankruptcy, the collateral value less estimated liquidation costs is compared to the loan balance to calculate any potential deficiency. If the collateral is sufficient then no charge-off is necessary. If a deficiency exists, then upon the loan becoming contractually 120 days past due, the deficiency is charged-off against the allowance for loan loss. In the case of 1-4 family residential or home equity loans, upon the loan becoming 120 days past due, a current value is obtained and after application of an estimated liquidation discount, a comparison is made to the loan balance to calculate any deficiency. Subsequently, any noted deficiency is then charged-off against the allowance for loan loss when the loan becomes contractually 180 days past due. If the customer has filed bankruptcy, then within 60 days of the bankruptcy notice, any calculated deficiency is charged-off against the allowance for loan loss. Collection efforts continue by means of repossessions or foreclosures, and upon bank ownership, liquidation ensues. Other Real Estate Owned Bank Premises and Equipment Type Estimated useful life Buildings 39 years Paving and landscaping 15 years Computer equipment and software 3 to 5 years Vehicles 5 years Furniture and other equipment 5 to 10 years Stock Options - Common Stock Warrants Income Taxes In the event the Company has unrecognized tax expense in future accounting periods, the Company will recognize interest in interest expense and penalties in operating expenses. There were no interest or penalties related to an unrecognized tax position for the years ended December 31, 2016 and 2015. Because of the impact of deferred tax accounting, other than interest and penalties, the reversal of the Company’s treatment by taxing authorities would not affect the annual effective tax rate but would defer or accelerate the payment of cash to the taxing authority. The Company’s tax filings for years ended 2014 through 2016 are currently open to audit under statutes of limitations by the Internal Revenue Service (“IRS”) and state taxing authorities. Income Per Share (Amounts in Thousands, Except For the years ended Share and Per Share Data) December 31, 2016 2015 Net income $ 958 $ 2,662 Weighted average shares outstanding 23,354,155 22,955,391 Weighted average dilutive shares outstanding 23,354,155 22,955,391 Basic and diluted income per share $ 0.04 $ 0.12 Financial Instruments – Off-balance-sheet instruments Comprehensive Income (Loss) Advertising Cost Business Combinations Reclassification Subsequent Events

3. FORMAL WRITTEN AGREEMENT

3. FORMAL WRITTEN AGREEMENT	12 Months Ended
	Dec. 31, 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 under which the Company and the Bank were required to take certain actions and implement certain plans. 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.

4. DEPOSITS IN AND FEDERAL FUND

4. DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
4. DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS	NOTE 4 DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS: The Bank had federal funds sold and cash on deposit with other commercial banks amounting to $16.9 million and $11.2 million at December 31, 2016 and 2015, respectively. Deposit amounts at other commercial banks may, at times, exceed federally insured limits. The Bank is required to maintain average reserve balances, computed by applying prescribed percentages to its various types of deposits, either at the Bank or on deposit with the Federal Reserve Bank. At December 31, 2016 and 2015, all required reserves were met by the Bank’s vault cash. In May 2015, we received notification that a $3.0 million unsecured fed funds line of credit facility with a correspondent bank had been reinstated. In February 2016, we received notification that this facility had been increased to $5.0 million. A condition of this unsecured fed funds line of credit is that the Bank agreed to maintain a minimum deposit balance with the correspondent bank of $200 thousand. As of December 31, 2016 and 2015, the Bank was in compliance with this requirement.

5. INVESTMENT SECURITIES

5. INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2016
Investment securities activity
5. INVESTMENT SECURITIES	NOTE 5 INVESTMENT SECURITIES: The amortized cost and estimated fair value of securities (all available-for-sale) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 - 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011 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 December 31, 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 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 - - 1,561 50 Corporate bonds 500 - - - 500 - Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947 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 December 31, 2016, the available-for-sale portfolio included one hundred and seven 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, no securities had an other-than-temporary impairment at December 31, 2016 or December 31, 2015. Investment securities with a carrying value of $11.3 million and $15.4 million at December 31, 2016 and 2015, respectively, were pledged to secure public deposits and for other purposes required by law. Gross proceeds on the sale of investment securities were $29.5 million and $7.1 million, respectively, as of December 31, 2016 and 2015. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the years ended December 31, (Dollars are in thousands) 2016 2015 Gross gains realized $ 366 $ 62 Gross losses realized (63) (27) Net realized gains $ 303 $ 35 The amortized cost and fair value of investment securities at December 31, 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. Also, actual maturities may differ from scheduled maturities on amortizing securities, such as mortgage-back securities and collateralized mortgage obligations, because the underlying collateral on these type of securities may be repaid prior to the scheduled maturity date. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available for Sale Cost Value Yield Due in one year or less $ 1,210 $ 1,210 0.91% Due after one year through five years 1,599 1,593 1.85% Due after five years through ten years 11,971 12,083 2.69% Due after ten years 55,922 55,125 1.91% Total $ 70,702 $ 70,011 2.02% 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 $2.8 million and $2.4 million as of December 31, 2016 and 2015, respectively. The stock has no quoted market value and no ready market exists.

6. LOANS

6. LOANS	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
6. LOANS	NOTE 6 LOANS: Loans receivable outstanding at December 31, are summarized as follows: (Dollars are in thousands) 2016 2015 Real estate secured: Commercial $ 103,331 $ 98,569 Construction and land development 25,755 14,672 Residential 1-4 family 249,700 242,916 Multifamily 12,582 12,954 Farmland 24,948 22,174 Total real estate loans 416,316 391,285 Commercial 26,955 21,469 Agriculture 3,164 3,793 Consumer installment loans 22,188 24,568 All other loans 6 54 Total loans $ 468,629 $ 441,169 Loans receivable on nonaccrual status at December 31, are summarized as follows: (Dollars are in thousands) 2016 2015 Real estate secured: Commercial $ 3,403 $ 4,358 Construction and land development 319 436 Residential 1-4 family 8,355 8,338 Multifamily 166 430 Farmland 1,003 1,170 Total real estate loans 13,246 14,732 Commercial - 65 Agriculture 83 9 Consumer installment loans 76 41 Total loans receivable on nonaccrual status $ 13,405 $ 14,847 Total interest income not recognized on nonaccrual loans for 2016 and 2015 was $639 thousand and $697 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of December 31, 2016 and December 31, 2015: As of December 31, 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 $ 4,104 $ 147 $ 3,636 $ 4,055 $ - Construction and land development 72 1 5 5 - Residential 1-4 family 3,745 192 3,861 4,182 - Multifamily 290 21 301 342 - Farmland 4,148 184 3,895 4,601 - Commercial - - - - - Agriculture 27 2 19 19 - Consumer installment loans 25 1 26 43 - All other loans - - - - - With an allowance recorded: Real estate secured: Commercial 1,469 8 1,191 1,270 65 Construction and land development 265 - 240 469 106 Residential 1-4 family 862 22 555 565 56 Multifamily 80 - - - - Farmland 575 27 591 602 299 Commercial 70 3 67 67 18 Agriculture 86 1 5 5 5 Consumer installment loans 26 1 9 9 3 All other loans - - - - - Total $ 15,844 $ 610 $ 14,401 $ 16,234 $ 552 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 is below. At December 31, 2016 and 2015, there were no loans over 90 days past due that were accruing. As of December 31, 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 Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 - - 1,367 11,215 12,582 Farmland 2,987 - - 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 - - 20 26,935 26,955 Agriculture 19 - 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans - - - - 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629 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 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 and leases 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 December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 - 88 3,164 Consumer installment loans 22,086 - 102 22,188 All other loans 6 - - 6 Total $ 436,150 $ 14,173 18,306 $ 468,629 As of December 31, 2015 (Dollars are in thousands) Pass Special Mention Substandard 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	12 Months Ended
	Dec. 31, 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 December 31, 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 December 31, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557) $ 220 $ (422) $ 1,625 Construction and land development 332 (5) 26 (7) 346 Residential 1-4 family 2,437 (720) 87 572 2,376 Multifamily 232 (18) - 27 241 Farmland 675 (2) 103 (348) 428 Total real estate loans 6,060 (1,302) 436 (178) 5,016 Commercial 266 (65) 62 (100) 163 Agriculture 124 - 7 (100) 31 Consumer installment loans 128 (83) 24 54 123 All other loans 1 - - (1) - Unallocated 914 - - (175) 739 Total $ 7,493 $ (1,450) $ 529 $ (500) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily - 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans - - - - 6 6 Unallocated - 739 739 - - - Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629 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 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	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
8. TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At December 31, 2016 loans classified as troubled debt restructurings totaled $9.6 million compared to $9.5 million at December 31, 2015. The following table presents information related to loans modified as troubled debt restructurings during the years ended December 31, 2016 and 2015. December 31, 2016 December 31, 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 $ 336 1 $ 320 $ 313 Construction and land Development - - - 1 551 290 Residential 1-4 family 2 420 402 2 225 221 Multifamily - - - - - - Farmland 1 291 268 - - - Total real estate loans 4 1,052 1,006 4 1,096 824 Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total 4 $ 1,052 $ 1,006 4 $ 1,096 $ 824 During the year ended 2016, the Company modified four loans that were considered to be troubled debt restructurings. 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 were changed. On two loans the interest rate was lowered and the payment terms and maturity date were changed. During the year ended 2015, the Company modified four loans that were considered to be troubled debt restructurings. On two of the loans we modified the terms and lowered the interest rate. On two of the loans the interest rate was not modified; however, the maturity date was extended. One commercial real estate loan with a recorded investment of $211 thousand that had been modified as a troubled debt restructuring defaulted during the year ended December 31, 2016, which was within twelve months of the loan’s modification date. No loans modified as troubled debt restructurings defaulted during the year end December 31, 2015. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. When determining the level 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. BANK PREMISES AND EQUIPMENT

9. BANK PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
9. BANK PREMISES AND EQUIPMENT	NOTE 9 BANK PREMISES AND EQUIPMENT: Bank premises and equipment at December 31, are summarized as follows: (Dollars are in thousands) 2016 2015 Land $ 9,097 $ 8,972 Buildings and improvements 22,889 22,593 Furniture and equipment 19,760 17,713 Vehicles 609 590 Construction in progress 18 18 52,373 49,886 Less accumulated depreciation (22,388) (21,738) Bank Premises and Equipment $ 29,985 $ 28,148 Depreciation expense for 2016 and 2015 was $2.4 million and $2.1 million, respectively.

10. OTHER TIME DEPOSITS

10. OTHER TIME DEPOSITS	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
10. OTHER TIME DEPOSITS	NOTE 9 BANK PREMISES AND EQUIPMENT: Bank premises and equipment at December 31, are summarized as follows: (Dollars are in thousands) 2016 2015 Land $ 9,097 $ 8,972 Buildings and improvements 22,889 22,593 Furniture and equipment 19,760 17,713 Vehicles 609 590 Construction in progress 18 18 52,373 49,886 Less accumulated depreciation (22,388) (21,738) Bank Premises and Equipment $ 29,985 $ 28,148 Depreciation expense for 2016 and 2015 was $2.4 million and $2.1 million, respectively.

11. INCOME TAX EXPENSE (BENEFIT

11. INCOME TAX EXPENSE (BENEFIT)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
11. INCOME TAX EXPENSE (BENEFIT)	NOTE 11 INCOME TAX EXPENSE (BENEFIT): The components of income tax expense (benefit) for the years ended December 31, are as follows: (Dollars are in thousands) 2016 2015 Current expense (benefit) $ (7) $ 19 Deferred tax expense (benefit) (2) - Net income tax expense (benefit) $ (9) $ 19 The net deferred tax assets and liabilities resulting from temporary differences as of December 31 are summarized as follows: (Dollars are in thousands) 2016 2015 Deferred Tax Assets Allowance for loan losses $ 2,064 $ 2,548 Deferred compensation 147 148 Accrued employee benefits 15 82 Nonaccrual loan interest 896 737 Other real estate owned 1,911 2,214 Repossessed assets 12 - Amortization of core deposits 101 119 Amortization of goodwill 514 607 Capitalized interest and repair expense 41 43 Net operating loss carryforward 5,648 5,150 AMT carryforward 320 305 Unrealized loss on securities available for sale 235 169 Total Assets, gross 11,904 12,122 Valuation allowance (5,317) (5,655) Total Assets, net 6,587 6,467 Deferred Tax Liabilities Accelerated depreciation 867 959 Prepaid expenses 38 44 Deferred loan costs 397 343 Total Liabilities, gross 1,302 1,346 Net Deferred Tax Asset $ 5,285 $ 5,121 The following table summarizes the differences between the actual income tax expense and the amounts computed using the federal statutory tax rate of 34%: (Dollars are in thousands) 2016 2015 Income tax expense (benefit) at the applicable federal rate $ 323 $ 912 Permanent differences resulting from: Nondeductible expenses 7 7 Tax exempt interest income (44) (44) State income taxes less federal tax effect 5 (13) Bank owned life insurance (57) (42) Deferred tax valuation allowance change, net (338) (735) Other adjustments 95 (66) Income tax expense (benefit) $ (9) $ 19 Management reviewed the December 31, 2016 deferred tax calculation to determine the need for a valuation allowance. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. In management’s opinion, based on a three year taxable income projection and the effects of off-setting deferred tax liabilities, it is more likely than not that all the deferred tax assets, net of the $5.3 million allowance, would be realizable. Management is required to consider all evidence, both positive and negative in making this determination. As of December 31, 2016, the Company had $16.6 million of net operating loss carryforwards which will expire in 2031 thru 2036. Management expects to utilize all of these carryforwards prior to expiration. Direct charge-offs contributed to a reduction of the tax asset and are permitted as tax deductions. In addition, writedowns on other real estate owned property are expensed for book purposes but are not deductible for tax purposes until disposition of the property. Goodwill expense also was realized for book purposes in 2011 but continues to only be tax deductible based on the statutory requirements; thus, creating a deferred tax asset. When, and if, taxable income increases in the future and during the net operating loss carryforward period, this valuation allowance may be reversed and used to decrease tax obligations in the future. We do not have significant nontaxable income or nondeductible expenses. The Company’s tax filings for years ended 2013 through 2016 were at year end 2016 open to audit under statutes of limitations by the Internal Revenue Service (“IRS”) and state taxing authorities. Our tax filings for the years ended 2010, 2011, and 2012 had been under examination by the IRS. In March 2015 we received notification from the IRS that as a result of the examination no changes were made to our reported tax.

12. RELATED PARTY TRANSACTIONS

12. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
12. RELATED PARTY TRANSACTIONS	NOTE 12 RELATED PARTY TRANSACTIONS: During the year, officers, directors (and companies controlled by them), principal shareholders, and associates were customers of and had loan transactions with the Bank in the normal course of business which amounted to $5.4 million at December 31, 2016 and $4.1 million at December 31, 2015. During the year ended December 31, 2016, total principal additions were $4.9 million and principal payments were $3.6 million, including renewals and advances on revolving lines of credit. During the year ended December 31, 2015, total principal additions were $3.1 million and principal payments were $3.6 million, including renewals and advances on revolving lines of credit. These transactions were made on substantially the same terms as those prevailing for other customers and did not involve any abnormal risk. Total related party deposits held at the Bank were $11.1 million and $12.2 million at the end of years 2016 and 2015, respectively.

13. RETIREMENT PLANS

13. RETIREMENT PLANS	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
13. RETIREMENT PLANS	NOTE 13 RETIREMENT PLANS: The Company has established a qualified defined contribution plan that covers all full time employees. Effective January 1, 2012 the qualified defined contribution plan was modified where the Company matched employee contributions up to a maximum of 3% of their salary. The Company contributed $385 thousand and $224 thousand to the defined contribution plan for 2016 and 2015, respectively. In addition, in 2002, the Bank established a salary continuation plan for key executives, which is funded by single premium life insurance policies. Expenses related to the plan were $5 thousand and $6 thousand for 2016 and 2015, respectively.

14. OTHER REAL ESTATE OWNED

14. OTHER REAL ESTATE OWNED	12 Months Ended
	Dec. 31, 2016
Real Estate [Abstract]
14. OTHER REAL ESTATE OWNED	NOTE 14 OTHER REAL ESTATE OWNED: The following table summarizes the activity in other real estate owned for the years ended December 31, 2016 and 2015: (Dollars are in thousands) 2016 2015 Balance, beginning of year $ 12,398 $ 15,049 Additions 4,577 3,277 Purchases of/improvements to other real estate owned 48 12 Donation of other real estate owned - (33) Transfers of other real estate owned to premises and equipment (125) - Proceeds from sales (5,050) (2,709) Proceeds from insurance claims - (101) Adjustment of carrying value (1,414) (3,246) Deferred gain from sales - 50 Gain from sales 221 99 Balance, end of year $ 10,655 $ 12,398

15. STOCK OPTION PLAN

15. STOCK OPTION PLAN	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
15. STOCK OPTION PLAN	NOTE 15 STOCK OPTION PLAN: New Peoples' Stock Option Plan (“the Plan”) was adopted on September 27, 2001. The purpose of the Plan is to reward employees and directors for services rendered and investment risks undertaken to date and to promote the success of the Company by providing incentives to employees and directors that will promote the identification of their personal interest with the long-term financial success of the Company and with growth in shareholder value. The Plan provides that options for up to 1,287,000 shares of the Company’s common stock may be issued to employees and directors. The exercise price may not be less than 100% of the fair market value of the shares on the award date. Each award becomes exercisable in the event of a change in control of the Company. All options are subject to exercise or forfeiture if the Company’s capital falls below minimum requirements, as determined by its primary state or federal regulator. The Plan expired on May 31, 2011. The Company did not grant any options in 2016 and 2015. No stock options were exercised in 2016 and 2015. There were no stock options outstanding at December 31, 2016. A summary of the status of the Company’s stock option plan is presented below: 2016 2015 2014 Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Outstanding and exercisable, Beginning of year - $ - 198,183 $ 11.54 284,729 $ 11.02 Exercised - - - - - - Forfeited - - (32,175) 11.54 (20,930) 11.04 Expired - - (166,008) 11.54 (65,616) 9.44 Outstanding and exercisable, End of year - $ - - $ - 198,183 $ 11.54

16. DIVIDEND LIMITATIONS ON SUB

16. DIVIDEND LIMITATIONS ON SUBSIDIARY BANK	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
16. DIVIDEND LIMITATIONS ON SUBSIDIARY BANK	NOTE 16 DIVIDEND LIMITATIONS ON SUBSIDIARY BANK: A principal source of funds of the Company is dividends paid by the Bank. The Federal Reserve Act restricts the amount of dividends the Bank may pay. Approval by the Board of Governors of the Federal Reserve System is required if the dividends declared by a state member bank, in any year, exceed the sum of (1) net income of the current year and (2) income net of dividends for the preceding two years. In October 2009, a restriction prohibiting the payment of dividends from the Bank to the Company was imposed by the Federal Reserve Bank of Richmond. This restriction was lifted when the Written Agreement was terminated effective January 20, 2016. For additional discussion concerning the Written Agreement, see Note 3, “Formal Written Agreement.”

17. LEASING ACTIVITIES

17. LEASING ACTIVITIES	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
17. LEASING ACTIVITIES	NOTE 17 LEASING ACTIVITIES: As of December 31, 2016 and 2015, respectively, the Bank had no significant operating leases. Rental commitments of less than one year are not included. There were no rentals charged to operations under operating leases in 2016 and 2015.

18. AVAILABLE LINES OF CREDIT A

18. AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
18. AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES	NOTE 18 AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES: The Bank has the ability to borrow up to an additional $120.9 million from the Federal Home Loan Bank under a line of credit which is secured by a blanket lien on residential real estate loans. The Bank had no overnight borrowings subject to daily rate changes from the Federal Home Loan Bank at December 31, 2016 or 2015. At December 31, 2016, we had borrowings from the FHLB totaling $13.8 million as compared to $3.0 million at December 31, 2015. At December 31, 2016, $1.8 million of these borrowings had fixed interest rates with an average yield of 4.07%, and a maturity date in 2018. In June 2016 the Bank borrowed $2.0 million with a maturity date in the year 2019 and $5.0 million with a maturity date in the year 2021. Both borrowings have fixed interest rates and interest is payable monthly, with a interest rate of 0.99% on the $2.0 million borrowing and an interest rate of 1.38% on the $5.0 million borrowing. In December 2016, the Bank borrowed $5.0 million with a maturity date in March 2017 and a fixed interest rate of 0.69%, with interest payable monthly. Letters of credit for $3.0 million and $2.0 million were issued in 2015 and a letter of credit for $7.0 million was issued in 2013 to the Treasury Board of Virginia for collateral on public funds. No draws on the letters of credit have been issued. The letters of credit are considered draws on our Federal Home Loan Bank line of credit. In May 2015, we received notification that a $3.0 million unsecured fed funds line of credit facility with a correspondent bank had been reinstated. In February 2016, we received notification that this facility had been increased to $5.0 million. In March 2016, we received notification that another correspondent bank had reinstated an unsecured federal funds line of credit facility in the amount of $5.0 million. As of December 31, 2016 and 2015, no balances were outstanding on these fed funds lines of credit.

19. FINANCIAL INSTRUMENTS WITH

19. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	12 Months Ended
	Dec. 31, 2016
Investments, All Other Investments [Abstract]
19. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	NOTE 19 FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK: In the normal course of business, the Bank has outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying consolidated financial statements. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making such commitments as it does for instruments that are included in the balance sheet. Financial instruments whose contract amount represents credit risk at December 31 were as follows: (Dollars are in thousands) 2016 2015 Commitments to extend credit $ 34,770 $ 27,742 Standby letters of credit 2,019 2,435 Commitments to extend credit are agreements to lend to a customer at either a fixed or variable interest rate as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit.

20. LEGAL CONTINGENCIES

20. LEGAL CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
20. LEGAL CONTINGENCIES	NOTE 20 LEGAL CONTINGENCIES: In the course of operations, we may become a party to legal proceedings. There are no pending or threatened legal proceedings to which the Company or any of its subsidiaries is a party or to which the property of the Company or any of its subsidiaries is subject that, in the opinion of management, may materially impact the financial condition of the Company, except for the following: On June 24, 2015 New Peoples Bank filed an Amended Complaint in the Circuit Court of Russell County, Virginia agaist Arthur Wayne Bostic, Michael W. Bostic, Sr. and Jeffrey C. Bostic to enforce guarantees of loans made to Bostic Ford Sales, Inc. and seeking judgment against the guarantors for $1,427,709.76 with interest and legal fees. On July 24, 2015 Arthur Bostic filed a counterclaim against the Bank. On March 8, 2016 Michael Bostic, Sr., and Jeffrey Bostic filed their counterclaims agains the Bank. The counterclaims assert lender liability theories of recovery and arise from the refusal of the Bank to continue to extend credit to Bostic Ford Sales, Inc. in 2008-2009. The defendants seek a judgment against the Bank of at least $3 million. On December 16, 2016 the Court entered an Order sustaining New Peoples’ demurrers to the counterclaims filed by all three defendants and providing the defendants an opportunity to amend their counterclaims. On December 23, 2016, the defendants filed amended counterclaims seek a judgment against the Bank of at least $3 million. Following the entry of the Court’s Order on December 16, 2016, the parties began certain discussions to narrow the issues in dispute and facilitate settlement.

21. TRUST PREFERRED SECURITIES

21. TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
21. TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS	NOTE 21 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 December 31, 2016 of 3.48%. 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 December 31, 2016 of 2.65%. Under the terms of the subordinated debt transactions, the securities have a 30-year maturity and are redeemable, in whole or in part, without penalty, at the option of the Company after five years of the issuance date. 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. After 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. This approval was granted during each quarter of 2015 and all trust preferred interest payments were made. 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 and all trust preferred interest payments due have been made on time since that date.

22. CAPITAL

22. CAPITAL	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
22. CAPITAL	NOTE 22 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 December 31, 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 December 31, 2016 and 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 December 31, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 67,549 16.64% $ 32,476 8.0% $ 40,595 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39% 24,357 6.0% 32,476 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,462 9.93% 25,149 4.0% 31,436 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39% 18,268 4.5% 26,386 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 December 31, 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 1 leverage, and Common Equity Tier 1 ratios as set forth in the above tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Under Basel III Capital requirements, 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, such as dividends, or discretionary bonus payments. Board of Directors Exercise of Common Stock Warrants During the month of October 2015, a member of the board of directors of the Company and his family exercised 233,886 common stock warrants at a price of $1.75 per share. During the month of November 2015, another member of the board of directors of the Company exercised 225,000 common stock warrants at a price of $1.75 per share. During the month of December 2015, another member of the board of directors of the Company and his family exercised 16,542 common stock warrants at a price of $1.75 per share. As a result of these exercises an additional $832 thousand of capital was raised by the Company. The additional liquidity provided by the funds will be used by the Company to pay its operating expenses and trust preferred interest payments. Common Stock Warrants As of December 31, 2016, 881,978 common stock warrants were outstanding as compared to 882,353 common stock warrants as of December 31, 2015. During 2016, 375 of the common stock warrants were exercised at a price of $1.75. As noted above, during 2015, 475,428 of common stock warrants were exercised at a price of $1.75. A summary of common stock warrants outstanding at December 31, 2016 follows: Expiration Date Exercise Price Number Outstanding And Exercisable Weighted Average Remaining Contractual Life December 20, 2017 $ 1.75 881,978 0.97 years Totals 881,978 0.97 years

23. FAIR VALUES

23. FAIR VALUES	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
23. FAIR VALUES	NOTE 23 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 establishes 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 December 31, 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 $ - $ 24,632 $ - Taxable municipals - 2,292 - Corporate bonds - 3,749 - Mortgage backed securities - 39,338 - (On a non-recurring basis) Other real estate owned - - 10,655 Impaired loans: Real estate secured: Commercial - - 4,762 Construction and land development - - 139 Residential 1-4 family - - 4,360 Multifamily - - 301 Farmland - - 4,187 Commercial - - 49 Agriculture - - 19 Consumer installment loans - - 32 All other loans - - - Total $ - $ 70,011 $ 24,504 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 December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at December 31, 2016 Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 13,849 $ 16,341 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 $ 10,655 $ 12,398 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 December 31, 2016 and 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 during the months of December 2016 and 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) December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ - $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 - 247,258 - FHLB Advances 13,758 13,993 - 13,993 - 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 -

24. RECENT ACCOUNTING DEVELOPME

24. RECENT ACCOUNTING DEVELOPMENTS	12 Months Ended
	Dec. 31, 2016
Accounting Changes and Error Corrections [Abstract]
24. RECENT ACCOUNTING DEVELOPMENTS	NOTE 24 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 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 January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification (“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. Early adoption is permitted. 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. Early adoption is permitted. 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. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. 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.

25. PARENT CORPORATION ONLY FIN

25. PARENT CORPORATION ONLY FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
25. PARENT CORPORATION ONLY FINANCIAL STATEMENTS	NOTE 25 PARENT CORPORATION ONLY FINANCIAL STATEMENTS: CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2016 AND 2015 (Dollars in Thousands) ASSETS 2016 2015 Due from banks $ 813 $ 1,445 Investment in subsidiaries 62,158 60,672 Other assets 587 589 Total Assets $ 63,558 $ 62,706 LIABILITIES Accrued interest payable $ 125 $ 104 Accrued expenses and other liabilities 20 19 Trust preferred securities 16,496 16,496 Total Liabilities 16,641 16,619 STOCKHOLDERS’ EQUITY Common stock - $2.00 par value, 50,000,000 shares authorized; 23,354,457 and 23,354,082 shares issued and outstanding at December 31, 2016 and 2015, respectively 46,709 46,708 Common stock warrants 764 764 Additional paid capital 13,965 13,965 Retained deficit (14,065) (15,023) Accumulated other comprehensive loss (456) (327) Total Stockholders’ Equity 46,917 46,087 Total Liabilities and Stockholders’ Equity $ 63,558 $ 62,706 CONDENSED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 (Dollars in Thousands) 2016 2015 Income Miscellaneous income $ 15 $ 13 Undistributed income of subsidiaries 1,615 3,295 Total income 1,630 3,308 Expenses Trust preferred securities interest expense 508 440 Legal fees 17 23 Accounting fees 88 114 Other operating expenses 59 69 Total Expenses 672 646 Income before Income Taxes 958 2,662 Income Tax Expense (Benefit) - - Net Income $ 958 $ 2,662 CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 (Dollars in Thousands) 2016 2015 Cash Flows From Operating Activities Net income $ 958 $ 2,662 Adjustments to reconcile net income to net cash used in operating activities: Income of subsidiaries (1,615) (3,295) Net change in: Other assets 2 98 Other liabilities 22 57 Net Cash Used in Operating Activities (633) (478) Cash Flows From Financing Activities Exercise of common stock warrants 1 832 Net Cash Provided by Financing Activities 1 832 Net increase (decrease) in Cash and Cash Equivalents (632) 354 Cash and Cash Equivalents, Beginning of year 1,445 1,091 Cash and Cash Equivalents, End of Year $ 813 $ 1,445 Supplemental Disclosure of Cash Paid During the Year for: Interest $ 487 $ 327 Taxes $ - $ -

26. SELECTED QUARTERLY INFORMAT

26. SELECTED QUARTERLY INFORMATION (UNAUDITED)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
26. SELECTED QUARTERLY INFORMATION (UNAUDITED)	NOTE 26 SELECTED QUARTERLY INFORMATION (UNAUDITED) 2016 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,420 $ 5,453 $ 5,402 $ 5,451 Noninterest income 1,909 2,043 1,753 1,586 Provision for loan losses - - (500) - Noninterest expense 8,300 7,155 6,776 6,337 Net income (loss) (968) 346 882 698 Earnings (loss) per share, basic (0.04) 0.01 0.04 0.03 Earnings (loss) per share, diluted (0.04) 0.01 0.04 0.03 Period end balance sheet Total loans receivable $ 468,629 $ 464,721 $ 459,613 $ 450,309 Total assets 634,335 633,867 632,311 636,459 Total deposits 554,438 556,516 555,084 555,216 Total stockholders’ equity 46,917 48,785 48,485 47,234 2015 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,922 $ 5,668 $ 5,601 $ 5,410 Noninterest income 1,641 1,777 1,541 1,444 Provision for loan losses (1,000) (1,200) - - Noninterest expense 9,276 6,338 6,680 6,229 Net income (loss) (715) 2,293 462 622 Earnings (loss) per share, basic (0.03) 0.10 0.02 0.03 Earnings (loss) per share, diluted (0.03) 0.10 0.02 0.03 Period end balance sheet Total loans receivable $ 441,169 $ 438,538 $ 443,775 $ 449,929 Total assets 625,898 633,758 642,774 660,130 Total deposits 558,019 564,623 576,597 593,324 Total stockholders’ equity 46,087 46,409 43,736 43,863

2. SUMMARY OF SIGNIFICANT ACC34

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Consolidation Policy	Consolidation Policy
Use of Estimates	Use of Estimates -
Cash and Cash Equivalents	Cash and Cash Equivalents
Investment Securities	Investment Securities The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method. Realized gains (losses) on securities available-for-sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Unrealized gains and losses on investment securities available for sale are based on the difference between book value and fair value of each security. These gains and losses are credited or charged to other comprehensive income, net of tax, whereas realized gains and losses flow through the statements of income.
Loans	Loans – It is the Company’s policy to stop accruing interest on a loan, and classify that loan as non-accrual under the following circumstances: (a) whenever we are advised by the borrower that scheduled payment or interest payments cannot be met, (b) when our best judgment indicates that payment in full of principal and interest can no longer be expected, or (c) when any such loan or obligation becomes delinquent for 90 days unless it is both well secured and in the process of collection. All interest accrued but not collected for loans that are place on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, six consecutive timely payments are made, and prospects for future contractual payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.
Significant Group Concentration of Credit Risk	Significant Group Concentrations of Credit Risk –
Allowance for Loan Losses	Allowance for Loan Losses – The allowance is increased by a provision for loan losses, which is charged to expense and reduced by charge-offs, net of recoveries. Loans are charged against the allowance for loan losses when management believes that collectability of all or part of the principal is unlikely. Past due status is determined based on contractual terms. In regard to our consumer and consumer real estate loan portfolio, the Company uses the guidance found in the Uniform Retail Credit Classification and Account Management Policy which affects our estimate of the allowance for loan losses. Under this approach, a consumer or consumer real estate loan must initially have a credit risk grade of Pass or better. Subsequently, if the loan becomes contractually 90 days past due or the borrower files for bankruptcy protection, the loan is downgraded to Substandard and placed in nonaccrual status. If the loan is unsecured, upon being deemed Substandard, the entire loan amount is charged off. For non 1-4 family residential loans that are 90 days past due or greater, or in bankruptcy, the collateral value less estimated liquidation costs is compared to the loan balance to calculate any potential deficiency. If the collateral is sufficient then no charge-off is necessary. If a deficiency exists, then upon the loan becoming contractually 120 days past due, the deficiency is charged-off against the allowance for loan loss. In the case of 1-4 family residential or home equity loans, upon the loan becoming 120 days past due, a current value is obtained and after application of an estimated liquidation discount, a comparison is made to the loan balance to calculate any deficiency. Subsequently, any noted deficiency is then charged-off against the allowance for loan loss when the loan becomes contractually 180 days past due. If the customer has filed bankruptcy, then within 60 days of the bankruptcy notice, any calculated deficiency is charged-off against the allowance for loan loss. Collection efforts continue by means of repossessions or foreclosures, and upon bank ownership, liquidation ensues.
Other Real Estate Owned	Other Real Estate Owned
Bank Premises and Equipment	Bank Premises and Equipment Type Estimated useful life Buildings 39 years Paving and landscaping 15 years Computer equipment and software 3 to 5 years Vehicles 5 years Furniture and other equipment 5 to 10 years
Stock Options	Stock Options -
Common Stock Warrants	Common Stock Warrants
Income Taxes	Income Taxes In the event the Company has unrecognized tax expense in future accounting periods, the Company will recognize interest in interest expense and penalties in operating expenses. There were no interest or penalties related to an unrecognized tax position for the years ended December 31, 2016 and 2015. Because of the impact of deferred tax accounting, other than interest and penalties, the reversal of the Company’s treatment by taxing authorities would not affect the annual effective tax rate but would defer or accelerate the payment of cash to the taxing authority. The Company’s tax filings for years ended 2014 through 2016 are currently open to audit under statutes of limitations by the Internal Revenue Service (“IRS”) and state taxing authorities.
Income Per Share	Income Per Share (Amounts in Thousands, Except For the years ended Share and Per Share Data) December 31, 2016 2015 Net income $ 958 $ 2,662 Weighted average shares outstanding 23,354,155 22,955,391 Weighted average dilutive shares outstanding 23,354,155 22,955,391 Basic and diluted income per share $ 0.04 $ 0.12
Financial Instruments - Off-balance-sheet instruments	Financial Instruments – Off-balance-sheet instruments
Comprehensive Income (Loss)	Comprehensive Income (Loss)
Advertising Cost	Advertising Cost
Business Combination	Business Combinations
Reclassification	Reclassification
Subsequent Events	Subsequent Events

2. SUMMARY OF SIGNIFICANT ACC35

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Estimated Useful Lives	Type Estimated useful life Buildings 39 years Paving and landscaping 15 years Computer equipment and software 3 to 5 years Vehicles 5 years Furniture and other equipment 5 to 10 years
Schedule of Basic and Diluted Net Loss Per Common Share Calculations	(Amounts in Thousands, Except For the years ended Share and Per Share Data) December 31, 2016 2015 Net income $ 958 $ 2,662 Weighted average shares outstanding 23,354,155 22,955,391 Weighted average dilutive shares outstanding 23,354,155 22,955,391 Basic and diluted income per share $ 0.04 $ 0.12

5. INVESTMENT SECURITIES (Table

5. INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 - 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011 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 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 - - 1,561 50 Corporate bonds 500 - - - 500 - Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947 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
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 $ 1,210 $ 1,210 0.91% Due after one year through five years 1,599 1,593 1.85% Due after five years through ten years 11,971 12,083 2.69% Due after ten years 55,922 55,125 1.91% Total $ 70,702 $ 70,011 2.02%

6. LOANS (Tables)

6. LOANS (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Summary of Loans Receivable Outstanding	(Dollars are in thousands) 2016 2015 Real estate secured: Commercial $ 103,331 $ 98,569 Construction and land development 25,755 14,672 Residential 1-4 family 249,700 242,916 Multifamily 12,582 12,954 Farmland 24,948 22,174 Total real estate loans 416,316 391,285 Commercial 26,955 21,469 Agriculture 3,164 3,793 Consumer installment loans 22,188 24,568 All other loans 6 54 Total loans $ 468,629 $ 441,169
Summary of Loans Receivable on Nonaccrual Status	(Dollars are in thousands) 2016 2015 Real estate secured: Commercial $ 3,403 $ 4,358 Construction and land development 319 436 Residential 1-4 family 8,355 8,338 Multifamily 166 430 Farmland 1,003 1,170 Total real estate loans 13,246 14,732 Commercial - 65 Agriculture 83 9 Consumer installment loans 76 41 Total loans receivable on nonaccrual status $ 13,405 $ 14,847
Summary of Impaired Loans	As of December 31, 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 $ 4,104 $ 147 $ 3,636 $ 4,055 $ - Construction and land development 72 1 5 5 - Residential 1-4 family 3,745 192 3,861 4,182 - Multifamily 290 21 301 342 - Farmland 4,148 184 3,895 4,601 - Commercial - - - - - Agriculture 27 2 19 19 - Consumer installment loans 25 1 26 43 - All other loans - - - - - With an allowance recorded: Real estate secured: Commercial 1,469 8 1,191 1,270 65 Construction and land development 265 - 240 469 106 Residential 1-4 family 862 22 555 565 56 Multifamily 80 - - - - Farmland 575 27 591 602 299 Commercial 70 3 67 67 18 Agriculture 86 1 5 5 5 Consumer installment loans 26 1 9 9 3 All other loans - - - - - Total $ 15,844 $ 610 $ 14,401 $ 16,234 $ 552 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	As of December 31, 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 Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 - - 1,367 11,215 12,582 Farmland 2,987 - - 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 - - 20 26,935 26,955 Agriculture 19 - 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans - - - - 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629 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 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 December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 - 88 3,164 Consumer installment loans 22,086 - 102 22,188 All other loans 6 - - 6 Total $ 436,150 $ 14,173 18,306 $ 468,629 As of December 31, 2015 (Dollars are in thousands) Pass Special Mention Substandard 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)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Summary of Activity in the Allowance for Loan Losses	As of December 31, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557) $ 220 $ (422) $ 1,625 Construction and land development 332 (5) 26 (7) 346 Residential 1-4 family 2,437 (720) 87 572 2,376 Multifamily 232 (18) - 27 241 Farmland 675 (2) 103 (348) 428 Total real estate loans 6,060 (1,302) 436 (178) 5,016 Commercial 266 (65) 62 (100) 163 Agriculture 124 - 7 (100) 31 Consumer installment loans 128 (83) 24 54 123 All other loans 1 - - (1) - Unallocated 914 - - (175) 739 Total $ 7,493 $ (1,450) $ 529 $ (500) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily - 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans - - - - 6 6 Unallocated - 739 739 - - - Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629
Schedule of Allocation of Portion of Allowance	As of December 31, 2015 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries 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 RESTRUCTURIN39

8. TROUBLED DEBT RESTRUCTURINGS (Tables)	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Schedule Of Loans Modified As Troubled Debt Restructurings	December 31, 2016 December 31, 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 $ 336 1 $ 320 $ 313 Construction and land Development - - - 1 551 290 Residential 1-4 family 2 420 402 2 225 221 Multifamily - - - - - - Farmland 1 291 268 - - - Total real estate loans 4 1,052 1,006 4 1,096 824 Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total 4 $ 1,052 $ 1,006 4 $ 1,096 $ 824

9. BANK PREMISES AND EQUIPMENT

9. BANK PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Bank Premises and Equipment	(Dollars are in thousands) 2016 2015 Land $ 9,097 $ 8,972 Buildings and improvements 22,889 22,593 Furniture and equipment 19,760 17,713 Vehicles 609 590 Construction in progress 18 18 52,373 49,886 Less accumulated depreciation (22,388) (21,738) Bank Premises and Equipment $ 29,985 $ 28,148

10. OTHER TIME DEPOSITS (Tables

10. OTHER TIME DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Schedule of Maturities	2017 $ 157,392 2018 27,278 2019 13,933 2020 20,100 2021 29,060 After five years 56 Total $ 247,819

11. INCOME TAX EXPENSE (BENEF42

11. INCOME TAX EXPENSE (BENEFIT) (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense	(Dollars are in thousands) 2016 2015 Current expense (benefit) $ (7) $ 19 Deferred tax expense (benefit) (2) - Net income tax expense (benefit) $ (9) $ 19
Schedule of Net Deferred Tax Assets and Liabilities	(Dollars are in thousands) 2016 2015 Deferred Tax Assets Allowance for loan losses $ 2,064 $ 2,548 Deferred compensation 147 148 Accrued employee benefits 15 82 Nonaccrual loan interest 896 737 Other real estate owned 1,911 2,214 Repossessed assets 12 - Amortization of core deposits 101 119 Amortization of goodwill 514 607 Capitalized interest and repair expense 41 43 Net operating loss carryforward 5,648 5,150 AMT carryforward 320 305 Unrealized loss on securities available for sale 235 169 Total Assets, gross 11,904 12,122 Valuation allowance (5,317) (5,655) Total Assets, net 6,587 6,467 Deferred Tax Liabilities Accelerated depreciation 867 959 Prepaid expenses 38 44 Deferred loan costs 397 343 Total Liabilities, gross 1,302 1,346 Net Deferred Tax Asset $ 5,285 $ 5,121
Schedule of Reconciliation of Income Tax Expense	(Dollars are in thousands) 2016 2015 Income tax expense (benefit) at the applicable federal rate $ 323 $ 912 Permanent differences resulting from: Nondeductible expenses 7 7 Tax exempt interest income (44) (44) State income taxes less federal tax effect 5 (13) Bank owned life insurance (57) (42) Deferred tax valuation allowance change, net (338) (735) Other adjustments 95 (66) Income tax expense (benefit) $ (9) $ 19

14. OTHER REAL ESTATE OWNED (Ta

14. OTHER REAL ESTATE OWNED (Tables)	12 Months Ended
	Dec. 31, 2016
Real Estate [Abstract]
Other Real Estate	(Dollars are in thousands) 2016 2015 Balance, beginning of year $ 12,398 $ 15,049 Additions 4,577 3,277 Purchases of/improvements to other real estate owned 48 12 Donation of other real estate owned - (33) Transfers of other real estate owned to premises and equipment (125) - Proceeds from sales (5,050) (2,709) Proceeds from insurance claims - (101) Adjustment of carrying value (1,414) (3,246) Deferred gain from sales - 50 Gain from sales 221 99 Balance, end of year $ 10,655 $ 12,398

15. STOCK OPTION PLAN (Tables)

15. STOCK OPTION PLAN (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of the Status of the Company's Stock Option Plan	A summary of the status of the Company’s stock option plan is presented below: 2016 2015 2014 Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Outstanding and exercisable, Beginning of year - $ - 198,183 $ 11.54 284,729 $ 11.02 Exercised - - - - - - Forfeited - - (32,175) 11.54 (20,930) 11.04 Expired - - (166,008) 11.54 (65,616) 9.44 Outstanding and exercisable, End of year - $ - - $ - 198,183 $ 11.54

19. FINANCIAL INSTRUMENTS WIT45

19. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	12 Months Ended
	Dec. 31, 2016
Investments, All Other Investments [Abstract]
Schedule of Financial Instruments with Credit Risk	(Dollars are in thousands) 2016 2015 Commitments to extend credit $ 34,770 $ 27,742 Standby letters of credit 2,019 2,435

22. CAPITAL (Tables)

22. CAPITAL (Tables)	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [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 December 31, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 67,549 16.64% $ 32,476 8.0% $ 40,595 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39% 24,357 6.0% 32,476 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,462 9.93% 25,149 4.0% 31,436 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39% 18,268 4.5% 26,386 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%
Summary of Common Stock Warrants Outstanding	Expiration Date Exercise Price Number Outstanding And Exercisable Weighted Average Remaining Contractual Life December 20, 2017 $ 1.75 881,978 0.97 years Totals 881,978 0.97 years

23. FAIR VALUES (Tables)

23. FAIR VALUES (Tables)	12 Months Ended
	Dec. 31, 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 $ - $ 24,632 $ - Taxable municipals - 2,292 - Corporate bonds - 3,749 - Mortgage backed securities - 39,338 - (On a non-recurring basis) Other real estate owned - - 10,655 Impaired loans: Real estate secured: Commercial - - 4,762 Construction and land development - - 139 Residential 1-4 family - - 4,360 Multifamily - - 301 Farmland - - 4,187 Commercial - - 49 Agriculture - - 19 Consumer installment loans - - 32 All other loans - - - Total $ - $ 70,011 $ 24,504 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 December 31, 2016 Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 13,849 $ 16,341 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 $ 10,655 $ 12,398 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) December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ - $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 - 247,258 - FHLB Advances 13,758 13,993 - 13,993 - 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 -

25. PARENT CORPORATION ONLY F48

25. PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Parent Corporation Only Condensed Balance Sheets	ASSETS 2016 2015 Due from banks $ 813 $ 1,445 Investment in subsidiaries 62,158 60,672 Other assets 587 589 Total Assets $ 63,558 $ 62,706 LIABILITIES Accrued interest payable $ 125 $ 104 Accrued expenses and other liabilities 20 19 Trust preferred securities 16,496 16,496 Total Liabilities 16,641 16,619 STOCKHOLDERS’ EQUITY Common stock - $2.00 par value, 50,000,000 shares authorized; 23,354,457 and 23,354,082 shares issued and outstanding at December 31, 2016 and 2015, respectively 46,709 46,708 Common stock warrants 764 764 Additional paid capital 13,965 13,965 Retained deficit (14,065) (15,023) Accumulated other comprehensive loss (456) (327) Total Stockholders’ Equity 46,917 46,087 Total Liabilities and Stockholders’ Equity $ 63,558 $ 62,706
Parent Corporation Only Condensed Statements of Income (Loss)	(Dollars in Thousands) 2016 2015 Income Miscellaneous income $ 15 $ 13 Undistributed income of subsidiaries 1,615 3,295 Total income 1,630 3,308 Expenses Trust preferred securities interest expense 508 440 Legal fees 17 23 Accounting fees 88 114 Other operating expenses 59 69 Total Expenses 672 646 Income before Income Taxes 958 2,662 Income Tax Expense (Benefit) - - Net Income $ 958 $ 2,662
Parent Corporation Only Condensed Statements of Cash Flows	(Dollars in Thousands) 2016 2015 Cash Flows From Operating Activities Net income $ 958 $ 2,662 Adjustments to reconcile net income to net cash used in operating activities: Income of subsidiaries (1,615) (3,295) Net change in: Other assets 2 98 Other liabilities 22 57 Net Cash Used in Operating Activities (633) (478) Cash Flows From Financing Activities Exercise of common stock warrants 1 832 Net Cash Provided by Financing Activities 1 832 Net increase (decrease) in Cash and Cash Equivalents (632) 354 Cash and Cash Equivalents, Beginning of year 1,445 1,091 Cash and Cash Equivalents, End of Year $ 813 $ 1,445 Supplemental Disclosure of Cash Paid During the Year for: Interest $ 487 $ 327 Taxes $ - $ -

26. SELECTED QUARTERLY INFORM49

26. SELECTED QUARTERLY INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of Selected Quarterly Information	2016 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,420 $ 5,453 $ 5,402 $ 5,451 Noninterest income 1,909 2,043 1,753 1,586 Provision for loan losses - - (500) - Noninterest expense 8,300 7,155 6,776 6,337 Net income (loss) (968) 346 882 698 Earnings (loss) per share, basic (0.04) 0.01 0.04 0.03 Earnings (loss) per share, diluted (0.04) 0.01 0.04 0.03 Period end balance sheet Total loans receivable $ 468,629 $ 464,721 $ 459,613 $ 450,309 Total assets 634,335 633,867 632,311 636,459 Total deposits 554,438 556,516 555,084 555,216 Total stockholders’ equity 46,917 48,785 48,485 47,234 2015 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,922 $ 5,668 $ 5,601 $ 5,410 Noninterest income 1,641 1,777 1,541 1,444 Provision for loan losses (1,000) (1,200) - - Noninterest expense 9,276 6,338 6,680 6,229 Net income (loss) (715) 2,293 462 622 Earnings (loss) per share, basic (0.03) 0.10 0.02 0.03 Earnings (loss) per share, diluted (0.03) 0.10 0.02 0.03 Period end balance sheet Total loans receivable $ 441,169 $ 438,538 $ 443,775 $ 449,929 Total assets 625,898 633,758 642,774 660,130 Total deposits 558,019 564,623 576,597 593,324 Total stockholders’ equity 46,087 46,409 43,736 43,863

1. NATURE OF OPERATIONS (Detail

1. NATURE OF OPERATIONS (Details Narrative)	Jun. 09, 2004Subsidiaries
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly owned subsidiaries	2

2. SUMMARY OF SIGNIFICANT ACC51

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2016
Buildings
Estimated useful life	39 years
Paving and Landscaping
Estimated useful life	15 years
Computer equipment and software | Minimum [Member]
Estimated useful life	3 years
Computer equipment and software | Maximum [Member]
Estimated useful life	5 years
Vehicles
Estimated useful life	5 years
Furniture and other equipment | Minimum [Member]
Estimated useful life	5 years
Furniture and other equipment | Maximum [Member]
Estimated useful life	10 years

2. SUMMARY OF SIGNIFICANT ACC52

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Basic and Diluted Net Loss Per Common Share Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Net income	$ 958	$ 2,662
Weighted average shares outstanding	23,354,155	22,955,391
Weighted average dilutive shares outstanding	23,354,155	22,955,391
Basic and diluted income per share	$ 0.04	$ 0.12

2. SUMMARY OF SIGNIFICANT ACC53

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Accounting Policies [Abstract]
Concentration Risk, Percentage	25.00%
Company's capital structure	$ 11,700

4. DEPOSITS IN AND FEDERAL FU54

4. DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Federal funds sold and cash on deposit	$ 16,900	$ 11,200
Unsecured Fed Funds
Line of Credit	$ 3,000
MInimum Balance Required	200

5. INVESTMENT SECURITIES - Sche

5. INVESTMENT SECURITIES - Schedule of Securities Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized Cost	$ 70,702
Gross Unrealized Gains	256	$ 305
Gross Unrealized Losses	947	801
Approximate Fair Value	70,011	101,642
US Government Agencies Debt Securities [Member]
Amortized Cost	24,821	41,488
Gross Unrealized Gains	80	244
Gross Unrealized Losses	269	209
Approximate Fair Value	24,632	41,523
Taxable Municipal Notes [Member]
Amortized Cost	2,340	3,337
Gross Unrealized Gains	2	5
Gross Unrealized Losses	50	61
Approximate Fair Value	2,292	3,281
Corporate Debt Securities [Member]
Amortized Cost	3,600	1,944
Gross Unrealized Gains	149	15
Gross Unrealized Losses		20
Approximate Fair Value	3,749	1,939
Mortgage Backed Securities [Member]
Amortized Cost	39,941	55,369
Gross Unrealized Gains	25	41
Gross Unrealized Losses	628	511
Approximate Fair Value	$ 39,338	$ 54,899

5. INVESTMENT SECURITIES - Sc56

5. INVESTMENT SECURITIES - Schedule of Fair Value and Gross Unrealized Losses on Investment Securities In A Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Less than 12 Months	$ 42,822	$ 56,999
Unrealized Losses, Less than 12 Months	843	512
Fair Value, 12 Months or More	7,104	16,705
Unrealized Losses, 12 Months or More	104	289
Fair Value, Total	49,926	73,074
Unrealized Losses, Total	947	801
US Government Agencies Debt Securities [Member]
Fair Value, Less than 12 Months	12,081	14,995
Unrealized Losses, Less than 12 Months	250	81
Fair Value, 12 Months or More	2,449	7,708
Unrealized Losses, 12 Months or More	19	128
Fair Value, Total	14,530	22,073
Unrealized Losses, Total	269	209
Taxable Municipal Notes [Member]
Fair Value, Less than 12 Months	1,561	2,136
Unrealized Losses, Less than 12 Months	50	57
Fair Value, 12 Months or More		278
Unrealized Losses, 12 Months or More		4
Fair Value, Total	1,561	2,414
Unrealized Losses, Total	50	61
Corporate Debt Securities [Member]
Fair Value, Less than 12 Months	500	923
Unrealized Losses, Less than 12 Months		20
Fair Value, 12 Months or More
Unrealized Losses, 12 Months or More
Fair Value, Total	500	923
Unrealized Losses, Total		20
Mortgage Backed Securities [Member]
Fair Value, Less than 12 Months	28,680	38,945
Unrealized Losses, Less than 12 Months	543	354
Fair Value, 12 Months or More	4,655	8,719
Unrealized Losses, 12 Months or More	85	157
Fair Value, Total	33,335	47,664
Unrealized Losses, Total	$ 628	$ 511

5. INVESTMENT SECURITIES - Amor

5. INVESTMENT SECURITIES - Amortized Cost and Fair Value Of Investment Securities Contractual Maturity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Investment securities activity
Due in one year or less, Amortized Cost	$ 1,210
Due after one year through five years, Amortized Cost	1,599
Due after five years through ten years, Amortized Cost	11,971
Due after ten years, Amortized Cost	55,922
Amortized Cost, Total	70,702
Due in one year or less, Fair Value	1,210
Due after one year through five years, Fair Value	1,593
Due after five years through ten years, Fair Value	12,083
Due after ten years, Fair Value	55,125
Approximate Fair Value	$ 70,011	$ 101,642
Due in one year or less, Weighted Average Yield	0.91%
Due after one year through five years, Weighted Average Yield	1.85%
Due after five years through ten years, Weighted Average Yield	2.69%
Due after ten years, Weighted Average Yield	1.91%
Weighted Average Yield, Total	2.02%

5. INVESTMENT SECURITIES (Detai

5. INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Investment securities activity
Securities pledged as collateral	$ 11,300	$ 15,400

6. LOANS - Summary of Loans Rec

6. LOANS - Summary of Loans Receivable Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Total loans and leases	$ 468,629	$ 441,169
Real Estate [Member]
Total loans and leases	416,316	391,285
Commercial
Total loans and leases	26,955
Commercial | Real Estate [Member]
Total loans and leases	103,331	98,569
Construction and Land Development | Real Estate [Member]
Total loans and leases	25,755	14,672
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	249,700	242,916
Multifamily | Real Estate [Member]
Total loans and leases	12,582	12,954
Farmland | Real Estate [Member]
Total loans and leases	24,948	22,174
Agriculture
Total loans and leases	3,164	3,793
Consumer Installment Loans
Total loans and leases	22,188	24,568
Other Loans
Total loans and leases	6	54
Unallocated
Total loans and leases

6. LOANS - Summary of Loans R60

6. LOANS - Summary of Loans Receivable on Nonaccrual Status (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Total loans receivable on nonaccrual status	$ 13,405	$ 14,847
Real Estate [Member]
Total loans receivable on nonaccrual status	13,246	14,732
Commercial
Total loans receivable on nonaccrual status		65
Commercial | Real Estate [Member]
Total loans receivable on nonaccrual status	3,403	4,358
Construction and Land Development | Real Estate [Member]
Total loans receivable on nonaccrual status	319	436
Residential 1-4 Family | Real Estate [Member]
Total loans receivable on nonaccrual status	8,355	8,338
Multifamily | Real Estate [Member]
Total loans receivable on nonaccrual status	166	430
Farmland | Real Estate [Member]
Total loans receivable on nonaccrual status	1,003	1,170
Agriculture
Total loans receivable on nonaccrual status	83	9
Consumer Installment Loans
Total loans receivable on nonaccrual status	$ 76	$ 41

6. LOANS - Summary of Impaired

6. LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Average Recorded Investment	$ 15,844	$ 20,564
Interest Income Recognized	610	735
Recorded Investment	14,401	17,324
Unpaid Principal Balance	16,234	19,850
Related Allowance	552	983
Other Loans | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Other Loans | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	26	19
Interest Income Recognized	1	4
Recorded Investment	9	45
Unpaid Principal Balance	9	45
Related Allowance	3	2
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	25	31
Interest Income Recognized	1	1
Recorded Investment	26	11
Unpaid Principal Balance	43	11
Related Allowance
Agriculture | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	86	24
Interest Income Recognized	1	2
Recorded Investment	5	18
Unpaid Principal Balance	5	18
Related Allowance	5	18
Agriculture | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	27	42
Interest Income Recognized	2	4
Recorded Investment	19	36
Unpaid Principal Balance	19	36
Related Allowance
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	70	80
Interest Income Recognized	3	3
Recorded Investment	67	69
Unpaid Principal Balance	67	69
Related Allowance	18	24
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] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	1,469	2,935
Interest Income Recognized	8	37
Recorded Investment	1,191	2,503
Unpaid Principal Balance	1,270	2,849
Related Allowance	65	288
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	4,104	4,534
Interest Income Recognized	147	163
Recorded Investment	3,636	4,212
Unpaid Principal Balance	4,055	5,173
Related Allowance
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	265	373
Interest Income Recognized
Recorded Investment	240	289
Unpaid Principal Balance	469	499
Related Allowance	106	155
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	72	12
Interest Income Recognized	1	1
Recorded Investment	5	10
Unpaid Principal Balance	5	10
Related Allowance
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	862	2,219
Interest Income Recognized	22	99
Recorded Investment	555	1,920
Unpaid Principal Balance	565	2,121
Related Allowance	56	168
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	3,745	3,506
Interest Income Recognized	192	161
Recorded Investment	3,861	3,037
Unpaid Principal Balance	4,182	3,150
Related Allowance
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	80	23
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Related Allowance
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	290	520
Interest Income Recognized	21	9
Recorded Investment	301	430
Unpaid Principal Balance	342	471
Related Allowance
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	575	906
Interest Income Recognized	27	38
Recorded Investment	591	761
Unpaid Principal Balance	602	778
Related Allowance	299	328
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	4,148	5,073
Interest Income Recognized	184	213
Recorded Investment	3,895	3,983
Unpaid Principal Balance	4,601	$ 4,620
Related Allowance

6. LOANS - Summary of Age Analy

6. LOANS - Summary of Age Analysis of Past Due Loans Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loans 30-59 Days Past Due	$ 10,519	$ 5,696
Loans 60-89 Days Past Due	1,886	1,594
Loans 90 or More Days Past Due	3,474	6,104
Total Past Due Loans	15,879	13,394
Current Loans	452,750	427,775
Total loans and leases	468,629	441,169
Real Estate [Member]
Loans 30-59 Days Past Due	10,370	5,559
Loans 60-89 Days Past Due	1,871	1,592
Loans 90 or More Days Past Due	3,360	6,013
Total Past Due Loans	15,601	13,164
Current Loans	400,715	378,121
Total loans and leases	416,316	391,285
Commercial
Loans 30-59 Days Past Due	20	18
Loans 60-89 Days Past Due		1
Loans 90 or More Days Past Due		64
Total Past Due Loans	20	83
Current Loans	26,935	21,386
Total loans and leases	26,955
Commercial | Real Estate [Member]
Loans 30-59 Days Past Due	1,676	311
Loans 60-89 Days Past Due	307	105
Loans 90 or More Days Past Due	1,083	2,534
Total Past Due Loans	3,066	2,950
Current Loans	100,265	95,619
Total loans and leases	103,331	98,569
Construction and Land Development | Real Estate [Member]
Loans 30-59 Days Past Due	103	144
Loans 60-89 Days Past Due	17
Loans 90 or More Days Past Due	44	17
Total Past Due Loans	164	161
Current Loans	25,591	14,511
Total loans and leases	25,755	14,672
Residential 1-4 Family | Real Estate [Member]
Loans 30-59 Days Past Due	4,237	4,694
Loans 60-89 Days Past Due	1,547	1,487
Loans 90 or More Days Past Due	2,233	2,891
Total Past Due Loans	8,017	9,072
Current Loans	241,683	233,844
Total loans and leases	249,700	242,916
Multifamily | Real Estate [Member]
Loans 30-59 Days Past Due	1,367	47
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due		320
Total Past Due Loans	1,367	367
Current Loans	11,215	12,587
Total loans and leases	12,582	12,954
Farmland | Real Estate [Member]
Loans 30-59 Days Past Due	2,987	363
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due		251
Total Past Due Loans	2,987	614
Current Loans	21,961	21,560
Total loans and leases	24,948	22,174
Agriculture
Loans 30-59 Days Past Due	19
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due	78
Total Past Due Loans	97
Current Loans	3,067	3,793
Total loans and leases	3,164	3,793
Consumer Installment Loans
Loans 30-59 Days Past Due	110	113
Loans 60-89 Days Past Due	15	1
Loans 90 or More Days Past Due	36	27
Total Past Due Loans	161	141
Current Loans	22,027	24,427
Total loans and leases	22,188	24,568
Unallocated
Total loans and leases
Other Loans
Loans 30-59 Days Past Due		6
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans		6
Current Loans	6	48
Total loans and leases	$ 6	$ 54

6. LOANS - Summary of Risk Cate

6. LOANS - Summary of Risk Category of Loans Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Total	$ 468,629	$ 441,169
Real Estate [Member]
Total	416,316	391,285
Pass
Total	436,150	404,566
Substandard
Total	18,306	19,680
Special Mention
Total	14,173	16,923
Real Estate [Member] | Pass
Total	384,785	355,626
Real Estate [Member] | Substandard
Total	18,049	19,460
Real Estate [Member] | Special Mention
Total	13,482	16,199
Commercial
Total	26,955
Commercial | Real Estate [Member]
Total	103,331	98,569
Agriculture
Total	3,164	3,793
Agriculture | Pass
Total	3,076	3,767
Agriculture | Substandard
Total	88	26
Agriculture | Special Mention
Total
Consumer Installment Loans
Total	22,188	24,568
Consumer Installment Loans | Pass
Total	22,086	24,478
Consumer Installment Loans | Substandard
Total	102	90
Consumer Installment Loans | Special Mention
Total
Other Loans
Total	6	54
Other Loans | Pass
Total	6	54
Other Loans | Substandard
Total
Other Loans | Special Mention
Total
Unallocated
Total
Construction and Land Development | Real Estate [Member]
Total	25,755	14,672
Construction and Land Development | Real Estate [Member] | Pass
Total	23,905	12,262
Construction and Land Development | Real Estate [Member] | Substandard
Total	319	436
Construction and Land Development | Real Estate [Member] | Special Mention
Total	1,531	1,974
Residential 1-4 Family | Real Estate [Member]
Total	249,700	242,916
Residential 1-4 Family | Real Estate [Member] | Pass
Total	238,400	229,182
Residential 1-4 Family | Real Estate [Member] | Substandard
Total	9,183	10,162
Residential 1-4 Family | Real Estate [Member] | Special Mention
Total	2,117	3,572
Farmland | Real Estate [Member]
Total	24,948	22,174
Farmland | Real Estate [Member] | Pass
Total	19,070	16,663
Farmland | Real Estate [Member] | Substandard
Total	4,333	2,588
Farmland | Real Estate [Member] | Special Mention
Total	1,545	2,923
Multifamily | Real Estate [Member]
Total	12,582	12,954
Multifamily | Real Estate [Member] | Pass
Total	10,848	12,264
Multifamily | Real Estate [Member] | Substandard
Total	367	503
Multifamily | Real Estate [Member] | Special Mention
Total	1,367	187
Commercial Portfolio Segment [Member] | Pass
Total	26,197	20,641
Commercial Portfolio Segment [Member] | Substandard
Total	67	104
Commercial Portfolio Segment [Member] | Special Mention
Total	691	724
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass
Total	92,562	85,255
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard
Total	3,847	5,771
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention
Total	$ 6,922	$ 7,543

7. ALLOWANCE FOR LOAN LOSSES -

7. ALLOWANCE FOR LOAN LOSSES - Summary of Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance, beginning of year	$ 7,493	$ 9,922
Charge Offs	(1,450)	(2,360)
Recoveries	529	2,131
Provision for loan losses	(500)	(2,200)
Balance, End of period	6,072	7,493
Real Estate [Member]
Balance, beginning of year	6,060	8,256
Charge Offs	(1,302)	2,167
Recoveries	436	675
Advances
Provision for loan losses	(178)	704
Balance, End of period	5,016	6,060
Multifamily | Real Estate [Member]
Balance, beginning of year	232	154
Charge Offs	(18)	384
Recoveries		6
Advances
Provision for loan losses	27	456
Balance, End of period	241	232
Commercial Real Estate [Member]
Balance, beginning of year	266	457
Charge Offs	(65)	92
Recoveries	62	1,412
Advances
Provision for loan losses	(100)	1,511
Balance, End of period	163	266
Commercial Real Estate [Member] | Real Estate [Member]
Balance, beginning of year	2,384	4,418
Charge Offs	(557)	(724)
Recoveries	220	147
Advances
Provision for loan losses	(422)	(1,457)
Balance, End of period	1,625	2,384
Residential 1-4 Family | Real Estate [Member]
Balance, beginning of year	2,437	2,572
Charge Offs	(720)	743
Recoveries	87	93
Advances
Provision for loan losses	572	515
Balance, End of period	2,376	2,437
Agriculture
Balance, beginning of year	124	125
Recoveries	7	3
Advances
Provision for loan losses	(100)	(4)
Balance, End of period	31	124
Construction and Land Development | Real Estate [Member]
Balance, beginning of year	332	199
Charge Offs	(5)	226
Recoveries	26	215
Advances
Provision for loan losses	(7)	144
Balance, End of period	346	332
Consumer Installment Loans
Balance, beginning of year	128	199
Charge Offs	(83)	101
Recoveries	24	41
Advances
Provision for loan losses	54	17
Balance, End of period	123	128
Other Loans
Balance, beginning of year	1	1
Advances
Provision for loan losses	(1)
Balance, End of period		1
Unallocated
Balance, beginning of year	914	912
Advances
Provision for loan losses	(175)	2
Balance, End of period	739	914
Farmland | Real Estate [Member]
Balance, beginning of year	675	913
Charge Offs	(2)	(90)
Recoveries	103	214
Advances
Provision for loan losses	(348)	(362)
Balance, End of period	$ 428	$ 675

7. ALLOWANCE FOR LOAN LOSSES 65

7. ALLOWANCE FOR LOAN LOSSES - Schedule of Allocation of Portion of Allowance (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 552	$ 983
Allowance for Loan Losses, Collectively Evaluated for Impairment	5,520	6,510
Allowance for Loan Losses, Total	6,072	7,493	$ 9,922
Recorded Investment in Loans, Individually Evaluated for Impairment	14,401	17,324
Recorded Investment in Loans, Collectively Evaluated for Impairment	454,228	423,845
Recorded Investment in Loans, Total	468,629	441,169
Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	526	939
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,490	5,121
Allowance for Loan Losses, Total	5,016	6,060
Recorded Investment in Loans, Individually Evaluated for Impairment	14,275	17,145
Recorded Investment in Loans, Collectively Evaluated for Impairment	402,041	374,140
Recorded Investment in Loans, Total	416,316	391,285
Commercial
Recorded Investment in Loans, Total	26,955
Commercial | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	65	288
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,560	2,096
Allowance for Loan Losses, Total	1,625	2,384
Recorded Investment in Loans, Individually Evaluated for Impairment	4,827	6,715
Recorded Investment in Loans, Collectively Evaluated for Impairment	98,504	91,854
Recorded Investment in Loans, Total	103,331	98,569
Construction and Land Development | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	106	155
Allowance for Loan Losses, Collectively Evaluated for Impairment	240	177
Allowance for Loan Losses, Total	346	332
Recorded Investment in Loans, Individually Evaluated for Impairment	245	299
Recorded Investment in Loans, Collectively Evaluated for Impairment	25,510	14,373
Recorded Investment in Loans, Total	25,755	14,672
Residential 1-4 Family | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	56	168
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,320	2,269
Allowance for Loan Losses, Total	2,376	2,437
Recorded Investment in Loans, Individually Evaluated for Impairment	4,416	4,957
Recorded Investment in Loans, Collectively Evaluated for Impairment	245,284	237,959
Recorded Investment in Loans, Total	249,700	242,916
Multifamily | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	241	232
Allowance for Loan Losses, Total	241	232
Recorded Investment in Loans, Individually Evaluated for Impairment	301	430
Recorded Investment in Loans, Collectively Evaluated for Impairment	12,281	12,524
Recorded Investment in Loans, Total	12,582	12,954
Farmland | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	299	328
Allowance for Loan Losses, Collectively Evaluated for Impairment	129	347
Allowance for Loan Losses, Total	428	675
Recorded Investment in Loans, Individually Evaluated for Impairment	4,486	4,744
Recorded Investment in Loans, Collectively Evaluated for Impairment	20,462	17,430
Recorded Investment in Loans, Total	24,948	22,174
Commercial Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	18	24
Allowance for Loan Losses, Collectively Evaluated for Impairment	145	242
Allowance for Loan Losses, Total	163	266	457
Recorded Investment in Loans, Individually Evaluated for Impairment	67	69
Recorded Investment in Loans, Collectively Evaluated for Impairment	26,888	21,400
Recorded Investment in Loans, Total	26,955	21,469
Agriculture
Allowance for Loan Losses, Individually Evaluated for Impairment	5	18
Allowance for Loan Losses, Collectively Evaluated for Impairment	26	106
Allowance for Loan Losses, Total	31	124	125
Recorded Investment in Loans, Individually Evaluated for Impairment	24	54
Recorded Investment in Loans, Collectively Evaluated for Impairment	3,140	3,739
Recorded Investment in Loans, Total	3,164	3,793
Consumer Installment Loans
Allowance for Loan Losses, Individually Evaluated for Impairment	3	2
Allowance for Loan Losses, Collectively Evaluated for Impairment	120	126
Allowance for Loan Losses, Total	123	128	199
Recorded Investment in Loans, Individually Evaluated for Impairment	35	56
Recorded Investment in Loans, Collectively Evaluated for Impairment	22,153	24,512
Recorded Investment in Loans, Total	22,188	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	6	54
Recorded Investment in Loans, Total	6	54
Unallocated
Allowance for Loan Losses, Individually Evaluated for Impairment
Allowance for Loan Losses, Collectively Evaluated for Impairment	739	914
Allowance for Loan Losses, Total	739	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 RESTRUCTURIN66

8. TROUBLED DEBT RESTRUCTURINGS - Schedule Of Loans Modified As Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
# of Loans	4	4
Pre-Mod. Recorded Investment	$ 1,052	$ 1,096
Post-Mod. Recorded Investment	$ 1,066	$ 824
Real Estate [Member]
# of Loans	4	4
Pre-Mod. Recorded Investment	$ 1,052	$ 1,096
Post-Mod. Recorded Investment	$ 1,066	$ 824
Farmland | Real Estate [Member]
# of Loans	1
Pre-Mod. Recorded Investment	$ 291
Post-Mod. Recorded Investment	$ 268
Residential 1-4 Family | Real Estate [Member]
# of Loans	2	2
Pre-Mod. Recorded Investment	$ 420	$ 225
Post-Mod. Recorded Investment	$ 402	$ 221
Commercial Real Estate [Member] | Real Estate [Member]
# of Loans	1	1
Pre-Mod. Recorded Investment	$ 341	$ 320
Post-Mod. Recorded Investment	$ 336	$ 313
Construction and Land Development | Real Estate [Member]
# of Loans		1
Pre-Mod. Recorded Investment		$ 551
Post-Mod. Recorded Investment		$ 290

8. TROUBLED DEBT RESTRUCTURIN67

8. TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Total TDRs	$ 9,600	$ 9,500
Period loan is considered to be in default, days	90 days

9. BANK PREMISES AND EQUIPMEN68

9. BANK PREMISES AND EQUIPMENT - Bank Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Bank premises and Equipment, Gross, Total	$ 52,373	$ 49,886
Less accumulated depreciation	(22,388)	(21,738)
Bank Premises and Equipment, Net, Total	29,985	28,148
Land
Bank premises and Equipment, Gross, Total	9,097	8,972
Buildings and Improvements
Bank premises and Equipment, Gross, Total	22,889	22,593
Furniture and other equipment
Bank premises and Equipment, Gross, Total	19,760	17,713
Vehicles
Bank premises and Equipment, Gross, Total	609	590
Construction in Progress
Bank premises and Equipment, Gross, Total	$ 18	$ 18

9. BANK PREMISES AND EQUIPMEN69

9. BANK PREMISES AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2,398	$ 2,092

10. OTHER TIME DEPOSITS - Sched

10. OTHER TIME DEPOSITS - Schedule of Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
2,017	$ 157,392
2,018	27,278
2,019	13,933
2,020	20,100
2,021	29,060
After five years	56
Total	$ 247,819	$ 256,978

10. OTHER TIME DEPOSITS (Detail

10. OTHER TIME DEPOSITS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Brokered deposits	$ 2,700	$ 2,700
Aggregate time deposits meeting or exceeding FDIC insurance limit	$ 13,000	$ 13,900

11. INCOME TAX EXPENSE (BENEF72

11. INCOME TAX EXPENSE (BENEFIT) - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Current expense (benefit)	$ (7)	$ 19
Deferred tax expense (benefit)	(2)
Net income tax expense (benefit)	$ (9)	$ 19

11. INCOME TAX EXPENSE (BENEF73

11. INCOME TAX EXPENSE (BENEFIT) - Schedule of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Allowance for loan losses	$ 2,064	$ 2,548
Deferred compensation	147	148
Accrued employee benefits	15	82
Nonaccrual loan interest	896	737
Other real estate owned	1,911	2,214
Repossessed assets	12
Amortization of core deposits	101	119
Amortization of goodwill	514	607
Capitalized interest and repair expense	41	43
AMT carryforward	320	305
Unrealized loss on securities available for sale	235	169
Total Assets, gross	11,904	12,122
Valuation allowance	(5,300)
Total Assets, net	6,587	6,467
Deferred Tax Liabilities	867	959
Accelerated depreciation	38	44
Prepaid expenses	397	343
Total Liabilities, gross	1,302	1,346
Net Deferred Tax Asset	$ 5,285	$ 5,121

11. INCOME TAX EXPENSE (BENEF74

11. INCOME TAX EXPENSE (BENEFIT) - Schedule of Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit) at the applicable federal rate	$ 323	$ 912
Nondeductible expenses	7	7
Tax exempt interest income	(44)	(44)
State income taxes less federal tax effect	5	(13)
Bank owned life insurance	(57)	(42)
Deferred tax valuation allowance change, net	(338)	(735)
Other adjustments	95	(66)
Net income tax expense (benefit)	$ (9)	$ 19

11. INCOME TAX EXPENSE (BENEF75

11. INCOME TAX EXPENSE (BENEFIT) (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Federal statutory tax rate	34.00%	34.00%
Valuation allowance	$ 5,300

12. RELATED PARTY TRANSACTIONS

12. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Loan transactions from officers and directors	$ 5,400	$ 4,100
Principal additions	4,900	3,100
Prinicipal payments received	3,600	3,600
Related Party Deposit Liabilities	$ 11,200	$ 12,200

13. RETIREMENT PLANS (Details N

13. RETIREMENT PLANS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Company matched employees salary maximum percent	3.00%	3.00%
Defined contribution	$ 385	$ 224
Related expenses to salary continuation plan	$ 5	$ 6

14. OTHER REAL ESTATE OWNED - O

14. OTHER REAL ESTATE OWNED - Other Real Estate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Real Estate [Abstract]
Balance, beginning of year	$ 12,398	$ 15,049
Additions	4,577	3,277
Purchases of other real estate owned	48	12
Donation of other real estate owned		(33)
Transfers of other real estate owned to premises and equipment	(125)
Proceeds from sales	(5,050)	(2,709)
Proceeds from insurance claims		(101)
Adjustment of carrying value	(1,414)	(3,246)
Deferred gain from sales		50
Gain (loss) from sales	(1,414)	99
Balance, end of year	$ (1,414)	$ 12,398

15. STOCK OPTION PLAN - Summary

15. STOCK OPTION PLAN - Summary of the Status of the Company's Stock Option Plan (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options Outstanding, Shares, Beginning	198,183	284,729
Options Outstanding, Weighted Average Exercise Price, Beginning	$ 11.54	$ 11.02
Options Forfeited, Shares	(32,175)	(20,930)
Options Forfeited, Weighted Average Exercise Price	$ 11.54	$ 11.04
Options Expired, Shares	(166,008)	(65,616)
Options Expired, Weighted Average Exercise Price	$ 11.54	$ 9.44
Options Outstanding, Shares, Ending		198,183
Options Outstanding, Weighted Average Exercise Price, Ending		$ 11.54

15. STOCK OPTION PLAN (Details

15. STOCK OPTION PLAN (Details Narrative)	Dec. 31, 2016shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options authorized	1,287

18. AVAILABLE LINES OF CREDIT81

18. AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES (Details Narrative) $ in Thousands	Dec. 31, 2016USD ($)
Banking and Thrift [Abstract]
Available additional borrowings from Federal Home Loan Banks	$ 107,100
Term borrowings with Federal Home Loan Bank	$ 1,800
Weighted average interest rate	4.07%
Due date	2,018

19. FINANCIAL INSTRUMENTS WIT82

19. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Schedule of Financial Instruments with Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Commitments To Extend Credit [Member]
Financial instruments with off-balance sheet risk	$ 34,770	$ 27,742
Standby Letters of Credit [Member]
Financial instruments with off-balance sheet risk	$ 2,019	$ 2,435

21. TRUST PREFERRED SECURITIE83

21. TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Securities Maturity	30 years
Minimum redemption period	5 years
Maximum interest and penalty payment deferral period	60 months
Payment of deferred interest on trust preferred securities	$ 2,500
NPB Capital Trust 1
Issuance of floating rate trust preferred securities	$ 11,300
Interest rate terms, spread over reference rate	3.48%
Basis spread description	3 month LIBOR
NPB Capital Trust 2
Interest rate terms, spread over reference rate	3.48%
Basis spread description	3 month LIBOR

22. CAPITAL - Schedule of Capit

22. CAPITAL - Schedule of Capital Requirements (Details) - Bank - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Total Capital to Risk Weighted Assets, Actual, Amount	$ 67,549	$ 65,713
Total Capital to Risk Weighted Assets, Actual, Ratio	16.64%	17.55%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 32,476	$ 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	$ 40,595	$ 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	$ 62,462	$ 60,998
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	15.39%	16.29%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 24,357	$ 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	$ 32,476	$ 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	$ 62,462	$ 60,998
Tier 1 Capital to Average Assets, Actual, Ratio	9.93%	9.67%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 25,149	$ 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	$ 31,549	$ 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	$ 62,462	$ 60,998
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	15.39%	16.29%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 18,268	$ 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	$ 26,386	$ 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%

22. CAPITAL - Summary of Common

22. CAPITAL - Summary of Common Stock Warrants Outstanding (Details)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Banking and Thrift [Abstract]
Expiration date	Dec. 20, 2017
Exercise price | $ / shares	$ 1.75
Number outstanding and exercisable | shares	881,978
Weighted average remaining contractrual life	11 months 19 days

23. FAIR VALUES - Summary of As

23. FAIR VALUES - Summary of Assets And Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 2 [Member]
Impaired Loans	$ 70,011	$ 101,642
Fair Value, Inputs, Level 3 [Member]
Other real estate owned	10,655	12,398
Impaired Loans	24,504	28,739
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Available for sale investments	24,632	41,523
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds
Available for sale investments	3,749	1,939
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities [Member]
Available for sale investments	39,338	54,899
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Taxable Municipals
Available for sale investments	2,292	3,281
Other Loans | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans
Consumer Installment Loans | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans	32	54
Agriculture | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans	19	36
Commercial Real Estate [Member] | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member]
Impaired Loans	49	45
Commercial Real Estate [Member] | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	4,762	6,427
Farmland | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	4,187	4,416
Residential 1-4 Family | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	4,360	4,789
Multifamily | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	301	430
Construction and Land Development | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member]
Impaired Loans	$ 139	$ 144

23. FAIR VALUES - Schedule of S

23. FAIR VALUES - Schedule of Significant Unobservable Inputs In Level 3 Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Impaired Loans
Fair Value at December 31, 2016	$ 13,849	$ 16,341
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%
Other Real Estate Owned
Fair Value at December 31, 2015	$ 10,655	$ 12,398
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%

23. FAIR VALUES - Estimated Fai

23. FAIR VALUES - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Net Loans	$ 462,557	$ 433,676
Time deposits	247,819	256,978
Fair Value, Carrying Amount [Member]
Net Loans	462,557	433,676
Time deposits	247,819	256,797
FHLB advances	13,758	2,958
Fair Value, Measurements, Recurring [Member]
Net Loans	467,707	438,589
Time deposits	247,258	256,797
FHLB advances	13,993	2,958
Fair Value, Inputs, Level 1 [Member]
Net Loans
Time deposits
FHLB advances
Fair Value, Inputs, Level 2 [Member]
Net Loans	453,858	422,248
Time deposits	247,258	256,797
FHLB advances	13,993	2,958
Fair Value, Inputs, Level 3 [Member]
Net Loans	$ 13,849	$ 16,341

25. PARENT CORPORATION ONLY F89

25. PARENT CORPORATION ONLY FINANCIAL STATEMENTS - Parent Corporation Only Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Due from banks	$ 18,500				$ 15,087
Other assets	3,470				2,213
LIABILITIES
Accrued interest payable	331				288
Accrued expenses and other liabilities	2,395				2,050
Trust preferred securities	16,496				16,496
Total Liabilities	587,418				579,811
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value, 50,000,000 shares authorized; 23,354,457 and 23,354,082 shares issued and outstanding at December 31, 2016 and 2015, respectively	46,709				46,708
Common stock warrants	764				764
Retained deficit	(14,065)				(15,023)
Accumulated other comprehensive loss	(456)				(327)
Total Stockholders' Equity	46,917				46,087				$ 42,851
Total Liabilities and Stockholders' Equity	$ 634,335				$ 625,898
Common stock, par value	$ 2				$ 2
Common stock, shares authorized	50,000,000				50,000,000
Common stock, shares issued	23,354,457				23,354,082
Common stock, shares outstanding	23,354,457				23,354,082
Parent Company [Member]
ASSETS
Due from banks	$ 813				$ 1,445
Investment in subsidiaries	62,158				60,672
Other assets	587				589
Total Assets	63,558				62,706
LIABILITIES
Accrued interest payable	125				104
Accrued expenses and other liabilities	20				19
Trust preferred securities	16,496				16,496
Total Liabilities	16,641				16,619
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value, 50,000,000 shares authorized; 23,354,457 and 23,354,082 shares issued and outstanding at December 31, 2016 and 2015, respectively	46,709				46,708
Common stock warrants	764				764
Additional paid capital	13,965				13,965
Retained deficit	(14,065)				(15,023)
Accumulated other comprehensive loss	(456)				(327)
Total Stockholders' Equity	46,917	$ 48,785	$ 48,485	$ 47,234	46,087	$ 46,409	$ 43,736	$ 43,863
Total Liabilities and Stockholders' Equity	$ 63,558				$ 62,706
Common stock, par value	$ 2				$ 2
Common stock, shares authorized	50,000,000				50,000,000
Common stock, shares issued	23,354,457				23,354,082
Common stock, shares outstanding	23,354,457				23,354,082

25. PARENT CORPORATION ONLY F90

25. PARENT CORPORATION ONLY FINANCIAL STATEMENTS - Parent Corporation Only Condensed Statements of Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Trust preferred securities interest expense									$ 508	$ 440
Other operating expenses									5,770	5,349
Total Noninterest Expenses									28,568	28,523
INCOME BEFORE INCOME TAXES									949	2,681
Income Tax Expense (Benefit)									(9)	19
NET INCOME									958	2,662
Parent Company [Member]
Miscellaneous income									15	13
Undistributed income (loss) of subsidiaries									1,615	3,295
Total income									1,630	3,308
Trust preferred securities interest expense									508	440
Legal fees									17	23
Accounting fees									88	114
Other operating expenses									59	69
Total Noninterest Expenses	$ 8,300	$ 7,155	$ 6,776	$ 6,337	$ 9,276	$ 6,338	$ 6,680	$ 6,229
INCOME BEFORE INCOME TAXES									958	2,662
Income Tax Expense (Benefit)
NET INCOME	$ (968)	$ 346	$ 882	$ 698	$ (715)	$ 2,293	$ 462	$ 622	$ 958	$ 2,662

25. PARENT CORPORATION ONLY F91

25. PARENT CORPORATION ONLY FINANCIAL STATEMENTS - Parent Corporation Only Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)									$ 958	$ 2,662
Net change in:
Other assets									(1,257)	200
Net Cash Provided by Operating Activities									3,447	6,560
CASH FLOWS FROM FINANCING ACTIVITIES
Net Cash Used in Financing Activities									7,220	(27,541)
Net increase (decrease) in cash and cash equivalents									9,110	(9,222)
Cash and Cash Equivalents, Beginning of the Year				$ 26,338				$ 35,560	26,338	35,560
Cash and Cash Equivalents, End of the Year	$ 35,448				$ 26,338				35,448	26,338
Supplemental Cash Flow Information
Interest									2,577	3,032
Taxes									95
Parent Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(968)	$ 346	$ 882	698	(715)	$ 2,293	$ 462	622	958	2,662
Adjustments to reconcile net income to net cash provided by operating activities:
Income of subsidiaries									(1,615)	(3,295)
Net change in:
Other assets									2	98
Other liabilities									22	57
Net Cash Provided by Operating Activities									(633)	(478)
CASH FLOWS FROM FINANCING ACTIVITIES
Exercise of common stock warrants									1	832
Net Cash Used in Financing Activities									1	832
Net increase (decrease) in cash and cash equivalents									(632)	354
Cash and Cash Equivalents, Beginning of the Year				$ 1,445				$ 1,091	1,445	1,091
Cash and Cash Equivalents, End of the Year	$ 813				$ 1,445				813	1,445
Supplemental Cash Flow Information
Interest									487	327
Taxes

26. SELECTED QUARTERLY INFORM92

26. SELECTED QUARTERLY INFORMATION - Schedule of Selected Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net interest income									$ 21,726	$ 22,601
Noninterest income									7,291	6,403
Provision of loan losses									(500)	(2,200)
Noninterest expense									28,568	28,523
Net income (loss)									958	2,662
Total loans and leases	$ 468,629				$ 441,169				468,629	441,169
Total assets	634,335				625,898				634,335	625,898
Total deposits	554,438				558,019				554,438	558,019
Total shareholders' equity	46,917				46,087				46,917	46,087	$ 42,851
Parent Company [Member]
Net interest income	5,420	$ 5,453	$ 5,402	$ 5,451	5,922	$ 5,668	$ 5,601	$ 5,410
Noninterest income	1,909	2,043	1,753	1,586	1,641	1,777	1,541	1,444
Provision of loan losses			(500)		(1,000)	(1,200)
Noninterest expense	8,300	7,155	6,776	6,337	9,276	6,338	6,680	6,229
Net income (loss)	$ (968)	$ 346	$ 882	$ 698	$ (715)	$ 2,293	$ 462	$ 622	958	2,662
Earnings (loss) per share, basic	$ (0.04)	$ 0.01	$ 0.04	$ 0.03	$ (0.03)	$ 0.10	$ 0.02	$ 0.03
Earnings (loss) per share, fully diluted	$ (0.04)	$ 0.01	$ 0.04	$ 0.03	$ (0.03)	$ 0.10	$ 0.02	$ 0.03
Total loans and leases	$ 468,629	$ 464,721	$ 459,613	$ 450,309	$ 441,169	$ 438,538	$ 443,775	$ 449,929	468,629	441,169
Total assets	634,335	633,867	632,311	636,459	625,898	633,758	642,774	660,130	634,335	625,898
Total deposits	554,438	556,516	555,084	555,216	558,019	564,623	576,597	593,324	554,438	558,019
Total shareholders' equity	$ 46,917	$ 48,785	$ 48,485	$ 47,234	$ 46,087	$ 46,409	$ 43,736	$ 43,863	$ 46,917	$ 46,087